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  • Why Nigerian products are rejected abroad, by don

    Why Nigerian products are rejected abroad, by don

    The wrong use of pesticides and preservatives by farmers necessitated by poor education and regulation are some of the reasons the nation’s agricultural products are rejected abroad, a don has said.

     The don, Prof. Lami Nnamonu of Agro-Chemistry Department, Federal University of Agriculture, Makurdi, Benue State, spoke in Port Harcourt, the Rivers State capital, at the workshop on the use of chemical substances for vulnerable women and youths organised by the Institute of Chartered Chemists of Nigeria (ICCON) and the National Assembly.

     In a statement, the institute quoted Nnamonu as saying that the nation’s agric produce is above Maximum Residue Limit (MRL) set by the World Health Organisation (WHO).

     She explained: “Whenever our produce gets there. They test them for these pesticides and they discover high levels of pesticides residues. The WHO has set Maximum Residue Limit (MRL), you discover that these pesticides residue in our food are higher than the MRL, and they just send them back.

     “We produce a lot of yam in Benue State and there was a franchise to export our yam to Europe and Americas but at the point of checking, they discovered that our yam has pesticide residues at levels higher than the MRL.

     “The government knows this. They should wake up to their responsibilities and that no one “cares about the common good and they do not worry about what is happening in the country.

     “Ghana exports all these things. They are able to comply. International market is structured with laid down rules and if one does not comply, they do not buy your goods.”

     She advised the government and its agencies to address the matter urgently.

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     “We have these policies written clearly, ranging from environmental laws, pollution laws, but our problem is implementation and monitoring. We do not implement them. My worries are huge. And they are also denying the country of huge foreign exchange.

     “Let them monitor the compliance of farmers because these farmers are largely uneducated. All they want is improved yields and they do not care about what the people eat, but just to get a bumper harvest. If the regulatory bodies are there, they will make sure that the right thing is done,” she said.

    ICCON Registrar/Chief Executive Officer, Wilford Jwalshik, who was represented by Gonap James, called for more information on chemical safety and security, and that there is a serious concern about the handling, storage and transportation of chemicals by the people.

    A participant, Chief Nwuche Michael, said: “This lecture has enlightened us that some of those chemicals we use are dangerous to our health and as I am going back, I will talk to my family to be aware of ‘don’ts and dos’ concerning usage of chemicals.”

  • Boosting local competitiveness in raw materials, products

    Boosting local competitiveness in raw materials, products

    Sustainable local supply of basic and secondary raw materials and innovations is fundamental to manufacturing sector’s survival. These and other innovative strategies, cutting-edge technologies, and sustainable practices that can contribute to the growth of the manufacturing ecosystem were subjects of discussion at the Nigerian Manufacturing and Equipment Expo (NME) co-located with the Nigerian Raw Materials Expo (NIRAM) in Lagos. Assistant Editor CHIKODI OKEREOCHA reports.

    The acute shortage of raw materials and intermediate input foisted on local manufacturers by the disruption in the global supply chain caused by the Covid-19 pandemic has since forced a rethink in favour of reconfiguring the manufacturing sector’s supply chain.

    Essentially, the supply chain reconfiguration- through backward integration for inputs that can be sourced locally, will enhance local sourcing of raw materials and products development in the Nigerian manufacturing sector.

    But even before the global supply chain glitch, which was unprecedented, and induced by COVID-19, which was first reported in Nigeria in February 2020, local raw materials utilisation in Nigeria’s manufacturing sector was on the downward trend.

    According to manufacturers, the downward trend was traceable to the first half of 2017 when the Central Bank of Nigeria (CBN) started its policy intervention in the official Foreign Exchange (forex) market.

    Manufacturers said the relatively more available forex resulting from the apex bank’s intervention rubbed off negatively on the backward integration agenda, as manufacturing firms preferred to import raw materials as against looking inward.

    Also, poor access to credit and inadequate economic infrastructure for inward development of local input was, and still is, an issue.

    Fast-forward to 2022 and 2023, local raw materials utilisation continued its downward spiral. For instance, it dipped to 52 per cent in the first half of 2022, down from 53 per cent of corresponding half in 2021.

    This indicated one percentage point decline over the period, according to the ‘Executive Summary of H1 2022 Economic Review’ by the Manufacturers Association of Nigeria (MAN). It, however, increased by two percentage points when compared with 50 per cent recorded in the second half of 2021.

    MAN, in the review stated the manufacturing sector was generally faced with limited investment in domestic production of raw materials for utilisation in most of the sub-sectors, which was as a result of limited funding and policy incentives in the country.

    However, manufacturers got a slight breather when local raw materials sourcing increased to 55.3 per cent in the first half of 2023 from 48.0 per cent recorded in the corresponding half of 2022.

    This indicated 7.3 percentage points increase over the period. It also increased by 1.8 percentage points when compared with 53.5 per cent recorded in the second half of 2022, with manufacturers attributing the observed increase in local raw materials utilisation within the sector to the growing challenges associated with sourcing forex.

    “This situation has compelled manufacturers to shift their focus towards obtaining raw materials domestically, despite the substantial cost implications involved,” MAN Director General Segun Ajaiyi-Kadir said.

    For Ajaiyi-Kadir and indeed, other manufacturers who, even before the global supply chain crisis, were agonising over the unavailability of raw materials and delay in receiving imported raw materials, including the high cost of raw materials, the shift in focus towards obtaining raw materials domestically is therefore, desirable.

    The desirability of such change in focus found expression in the seventh edition of the Nigeria Manufacturing Equipment Expo (NME Expo) co-located with the ninth Nigeria Raw Materials Exposition (NIRAM Expo), which held in Lagos, Nigeria, from  November 21 to 23, 2023.

    Tagged: ‘West Africa’s largest manufacturing, equipment and raw materials event,’ the co-located NME/NIRAM Expo 2023 had the theme: “Future Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria.”

    Organised by MAN, in collaboration with Raw Materials Research and Development Council (RMRDC), NME was a response to government’s commitment to industrialisation and economic diversification.

    Read Also: Nigeria woos foreign investors with attractive forex repatriation, RoI

    It was, for manufacturers, an opportunity to explore new production processes that will increase their production output, including embracing innovative technologies to boost their competitiveness.

    NIRAM, on the other hand, was designed to create a platform for manufacturers to seamlessly source raw materials and also benefit from research and development breakthroughs.

    For the RMRDC, it was the answer to its yearning for a paradigm shift from Nigeria’s over dependence on imported raw materials and products to local raw materials utilisation and backward integration in areas where the country has comparative and competitive advantages.

    If the robustness and reach of the recommendations put forward by various stakeholders in both the public and private sectors are anything to go by, the co-located event may have set the stage for what promises to change the narrative in local sourcing of raw materials and products development in the Nigerian manufacturing sector thereby enhancing the sector’s productivity and global competitiveness.

    For instance, the Minister of Industry, Trade and Investment, Dr. Doris Uzoka Anite, was emphatic that Nigeria must prioritise the development of the local raw materials sector in order to support her manufacturing industry.

    The minister, in her keynote address at the opening ceremony of the expo on Tuesday, stated that by focusing on value addition and local sourcing, Nigeria can reduce her reliance on imported raw materials and improve the overall competitiveness of her products.

    “This-value addition and local sourcing, will also contribute to the growth of Small and Medium-sized Enterprises (SMEs) and empower local entrepreneurs to participate actively in the manufacturing value chain,” Anite said.

    The minister, who was represented by Mrs. Olumuyiwa Ajaiyi-Ade, said in line with the objectives of the President Bola Tinubu’s Renewed Hope Agenda, it was essential that “We intentionally shift our focus towards non-oil manufacturing sectors…

    “Through fostering innovation, championing local content, and strategically investing in critical infrastructure, we have the potential to catalyse the development of a robust and globally competitive manufacturing sector, thereby significantly contributing to our economy.”

    New technologies hold the ace

    Dr. Uzoka Anite did not mince words when she said the future of manufacturing in Nigeria relies on the ability to embrace technological advancements and innovation. She said by adopting cutting-edge technologies, Nigeria can boost the competitiveness of local manufacturers and also position herself as a global manufacturing hub.

    She said the expo’s theme aligned with the nation’s quest for revitalisation of the manufacturing sector, but that manufacturers must leverage emerging trends such as Artificial Intelligence (AI), automation, robotics, and the Internet of Things (IoT) to enhance their manufacturing processes, improve efficiency, and drive productivity. 

    The minister’s words: “The theme emphasises the need for a renewed focus as well as deliberate attention to the development of the non-oil sector through manufacturing processes. As we are all aware, Nigeria has long been dependent on oil as our primary source of revenue, putting marginal attention to sustained manufacturing activities.

    “However, the volatility of the global oil market and the need for diversification have necessitated a shift towards developing our manufacturing industry and tapping into its immense potential. We are convinced that manufacturing has always been a critical driver of any economic development and is crucial for sustainable growth and job creation.

    “It has the potential to transform our nation’s economy, diversify our revenue sources, and reduce our dependence on oil. The current global economic landscape provides us with unique opportunities to showcase Nigeria’s manufacturing potential and attract local and foreign investments to drive this crucial sector forward.”

    Dr. Uzoka Anite reaffirmed the Federal Government’s commitment, through her ministry, to fostering a conducive environment for manufacturers to flourish.

    “Our commitment extends to the implementation of policies and programs that facilitate ease of doing business, improve access to finance for manufacturers, and enhance infrastructure and logistics to bolster the manufacturing sector’s growth,” she said.

    She stated that as part of this commitment, the ministry will strengthen collaboration with MAN to implement sector-specific guidelines. This, according to her, underscores the pivotal role of the manufacturing sector in government’s overarching strategy for sustainable growth.

    “We acknowledge that manufacturing is a cornerstone for job creation, value addition, and a robust workforce. Our policy initiatives centered on creating an enabling environment, incentivising production activities, and promoting the use of made-in-Nigeria products to boost the competitiveness of our manufacturers, the minister stated.

    She pointed out that since her assumption of office, with the approval of the president, a Presidential Council for Industrial Revitalisation has been established, with the Minister of Finance serving as the Chair and herself as the Vice Chair.

    The industry minister added that various workgroups and task forces have been formed to effectively implement the council’s mandate.

    Some of them include subcommittees on consumer credit, commodity exchange, heavy industries, and steel development, as well as trade facilitation and ease of doing business.

    Other subcommittees are licensing and certification of artisans, trade facilitation and realisation, mining and solid minerals, oil and gas, and creative industries.

    MAN President Otunba Francis Meshioye could not agree less that the future of manufacturing in Nigeria is hinged on embracing technology and innovation.

    He noted that the unprecedented rate in which the world is changing in terms of innovative technologies, shifting customer expectations, as well as increasing social awareness of gender equity and restoration of previously marginalised communities has considerable impact on the future of the manufacturing sector hence the choice of the theme for the expo.

    Given these major shifts, Meshioye said: “If manufacturers can efficiently balance a combination of efficient economies of production and supply chains; strong and reputable products; loyal customers; an established logistics network; as well as reliable on-line business elements, they will be well-positioned in the future to compete favourably in the industrial marketplace.” 

    The MAN president expressed optimism that by successfully assimilating advanced technologies into their systems, existing and prospective industrialists can expect to realise even greater revenue and profits from their investments.

    Meshioye said despite concerns that the continent lacks the requirements for global advancements to capitalise on innovative technological initiatives, African countries are uninhibited by infrastructure legacy challenges, thereby providing a higher degree of flexibility than their developed counterparts.

    “Accordingly, Industry 4.0 remains a considerable opportunity for African manufacturers, ultimately giving the continent a cutting edge over the global economy. Beyond manufacturing, all industrial and commercial businesses in the country also suffer from energy inadequacy and inefficiency,” he said.

    Industry 4.0—also called the Fourth Industrial Revolution or 4IR—is the next phase in the digitisation of the manufacturing sector, driven by disruptive trends including the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics.

    Generally-speaking, Industry 4.0 describes the growing trend towards automation and data exchange in technology and processes within the manufacturing industry.

    RMRDC: we’ve risen to the task

    Aware that local raw materials utilisation and products development are key to Nigeria’s industrialisation and global competitiveness, the RMRDC said it is leaving nothing to chance in expediting Nigeria’s industrialisation through optimal utilisation of its natural endowments (agro and mineral raw materials) as inputs for manufacturing.

    The Council’s Director-General/CEO, Prof. Hussaini Doko Ibrahim, described its collaboration with MAN as ‘strategic,’ noting that their roles complement each other, and this, according to him, underscored the Council’s partnership with MAN in co-hosting these yearly expositions.

    He said the essence was to maximise the benefits to their common stakeholders, who continually aim to reduce the cost of manufacturing amid the rising cost of raw materials and process equipment.

    The DG, who spoke through RMRDC’s Director Business Innovation Centre, Mr. John Obekpa, specifically said the Council has assiduously worked over the years with stakeholders to increase manufacturers’ access to both basic and secondary raw materials.

    “The primary production of several strategic agricultural raw materials like cotton, sorghum, tomatoes, cocoa, sheet trees, oil palms, soya beans, cane sugar, cashew, fruits and sesame have been boosted by providing specific farmers with improved seeds or seedlings as the case might be,” he said.

    Prof. Ibrahim also said the establishment of over 40 pilot plants at the recently-inaugurated Raw Materials and Development Council’s Technology and Innovation Complex, Obasanjo Space Centre, Airport Road, Abuja, was a testimony to the Council’s unwavering commitment to ensuring competitiveness in raw materials and products development.

    According to him, the pilot plants at the complex signpost the Nigerian “I Can Do spirit’’ as it has emerged as a unique manufacturers’ hub.

    “It beckons venture capitalists to replicate the plants across the country for increased manufacturing activities even as their feasibility/viability and the capability of Nigerian Engineers to design and fabricate manufacturing equipment have been astutely demonstrated by the quality of indigenous engineering prowess brought to bear in putting the Technology and Innovation Complex together,” he said.

    The RMRDC boss further said the Centre has developed technologies that can produce caustic soda, soap noodles, calcium carbonate, lovastatin, herbal medicine, calcined kaolin, chemicals, talc, hydrated lime, essential oil, API from Mushrooms, Artemesia and triple concentrate tomato paste, which are secondary raw materials which are hitherto with limited local inputs and heavily imported.

    The Nation learnt that the technical feasibility/viability of all these have been ascertained and need scaling up for investment. And these innovations and their products were on display at the expo alongside other local raw materials and products, where a detailed exposé of the nation’s raw materials and their potential to grow the manufacturing sector was made.

  • Firm launches products

    Office automation and document management solutions provider, Brother International, has upgraded its products range from the business machines to the document scanners as part of the brand’s regional growth strategy.

    The products were launched in conjunction with the firm’s partner and authorised representative in Nigeria, Skysat Technologies, during a dealer conference and training on the new digital printers, held in Lagos.

    Assistant Manager, Planning Division, Brother International, Virginia Jonathan said the products would help their customers including home-based and medium to large-sized businesses to  increase productivity, improve work-flow,  enhance organisational efficiency and   reduce costs.

    According to her, the firm is working to address the demand in market by delivering and offering high quality products from Laser and Inkjet printers/MFP, high speed document scanners to innovative labeling printers.

    She noted that with the partnership with Skysat Technologies, Brother International is billed to provide excellent sales and after sales technical support services for its products in Nigeria.

    “From the business machines, Brother’s latest Ink refill tank system series delivers enhanced print quality, paper handling capabilities and page yields for SMBs and SOHOs. Specifically targeted for high print volume home offices and small workgroups. The new products have been designed to cater to the ever-changing needs of the consumer who is always looking for quality and cost-effective document management solutions.’’

    She added: “They are developed for the heavy-duty scanning demands of the SMB market; all offer full network functionality, which allows the machine to work harder for multiple users on various devices, without the need for a link to a central PC.”

    MD, Skysat Technologies, Izzat Debs, said the launch was to recognise the firms existing leaders and to thank them for their patronage.

    He said the products launched are exciting, special and would do wonders in the market.

    “We have noticed that Nigerians don’t want to have a monopoly of brands but they are looking for other brands too to be available but with the capabilities and features these products have, we will complement what the customers are looking for,” he said.

  • Patronise products with service centres, consumers advised

    The importance of after sales services in all services and products, be it cars, laptops, phones, fridges, washing machines, television sets, etcetera, cannot be over emphasised.

    Mr. Tokunbo Abiodun bought a Touchee brand mobile phone for N20,000 from ‘Phone For You’ shop at Otigba Street, Computer Village, Ikeja.

    He liked the phone very much. According to him, the phone had almost all the features he wanted in a phone and moreover the performance was almost excellent. “To buy such a phone from a popular brand would have cost me nothing less than N150,000. But because Touchee is a relatively unknown brand from a Japanese company, the price had to be very pocket friendly to attract customers,” explained the embattled Abiodun.

    Recounting his ordeal, he said before he knew it, the Touchee mobile phone became his favourite. He armed himself with it anywhere he went and unwittingly transferred all his documents and contacts to the phone, unfortunately without any backup.

    After about a year of using the phone, just one day after making a call, as he wanted to place the phone back on his desk, he noticed the screen colour changing to multi colour. As he stared at the phone trying to grasp what was happening, the colour changed from multi to just white, grey and black.

    “Tentatively, I placed the phone on my office table wondering what to do next. It is not that I do not have another phone but that particular phone held many of my important details. Picking the phone again, I saw that I could not decipher anything on the screen,” lamented Abiodun.

    Continuing, he said, “In fact, as I was still holding the phone, it started ringing but I couldn’t even answer the call as the whole screen was just blank.”

    The next day, he took the phone back to where he bought it, ready to pay for the repairs. The telephone repairer that was called in confirmed that the screen had gone bad and needed replacement, but unfortunately the spare parts of the phone could not be found anywhere in the market.

    Abiodun, desperate to have the phone repaired so as to retrieve his documents, paid two boys to search around the Computer Village and environs to get the screen or matching one, all to no avail.

    The only option left to him was to buy another Touchee phone at the full price so as to use the good screen to replace his damaged screen in order to have his old phone working again so as to have access to the documents he stored in the phone. Too bad.

    Relating his own experience, Engineer Bright Emmanuel, who is an Information Technologist, regretted that Nigeria is filled with so many substandard phone models without a service centre. “One of the primary qualifications to operate a mobile phone brand in any country should include having a service centre with parts available. Imagine a vehicle without any spare part in Nigeria, why buy it? But mobile phones seem to have passed the test un-noticed because agencies responsible are not really efficient.

    “I bought a Fero phone in 2015. I was disappointed when I wanted to fix the ear jack and charging port. I went to their service centre and was told to check or call back in two weeks because the parts were being shipped from China. I kept calling and calling till I finally dumped the phone. It was so frustrating,” lamented the information technologist.

    Speaking further, he said, “My advice? Make sure you do not buy a mobile phone that does not have both parts and a verified service centre in Nigeria.”

    I am sure most of you still remember the story of Nnenna Onu [not real names] published on this page. She bought a Mi-tribe A 500 mobile phone from the Online store, Konga.com. After about one year of using the phone the battery parked up prompting her to get in touch with the seller, who directed her to Mi-tribe supposed Service Centre ‘Archos’ at 20 Oremeji Street, Computer Village Ikeja.

    She was informed the battery was not available though they had placed orders from the head quarters of the company, Mi-Fone, in Kenya. After several visits to the Archos office and being given the same excuse each time, Onu decided to contact the company’s head office through an email but her email did not receive any response.

    At that point, it dawned on her that she was never going to get any help from them. She had made a mistake to have bought a brand without any office or service centre in the country. She had to improvise with a padded Infinix battery which makes the phone to trip off from time to time when the battery which is occupying the space for Mi-tribe battery loses contact with the phone.

    Mi-tribe A 500 is from the stables of Mi-Fone, a Mauritanian mobile phone founded by Alpesh Patel and touted to be the first mobile phone made in Africa.

    Mrs. Oni Balogun who purchased a 7kg Hotpoint washing machine in London and shipped to Nigeria is still at a loss about what to do. Hotpoint is a known and premium United Kingdom brand but it does not have an office or service centre in Nigeria.

  • SON cautions on use of sub-standard products

    SON cautions on use of sub-standard products

    The Standards Organisation of Nigeria (SON) has cautioned Nigerians on the dangers of using fake products, warning that the risks associated with such unwise patronage far outweigh the benefits, if any.

    The organisation said it was carrying out sensitisation programmes across the country to educate stakeholders on the dangers inherent in the use of sub-standard products.

    SON Director-General Osita Aboloma stated these in Aba, the commercial capital of Abia State, during a general sensitisation workshop on substandard lubricants held in the city.

    Osita, represented by SON Regional Co-ordinator in the Southeast, Obi David, an engineer, said the regulatory body had before now carried out zero tolerance and total eradication sensitisation workshops for substandard products.

    He added that the agency has now decided to go for reduction in fake products all in a bid to achieve the same goal of reducing the circulation of fake goods in the country to the barest minimum.

    His words: “We’ve carried out zero tolerance for sub-standard goods; we’ve done total eradication and we are now speaking of reduction. There is no country in the world that can boost of total eradication of substandard products.

    “What we are saying now is that we want to reduce it to extreme minimum and if we can get that it will be a very big achievement. We want to start from somewhere; if we can achieve reduction, it will be as good as eradication.”

    Osita, who said SON’s sensitisation programmes were not limited to oil, but to other products, however, informed that the organisation limited the Aba programme to lubricants because of its effect on the economy and the people.

    “The use of lubricants touches on all vehicles, industrial machines of various types, hydraulic systems, electric transformers and other things. It is obvious that most of our daily activities depend directly or indirectly on use of lubricants and it is, therefore, necessary that every stakeholder be aware of good and substandard lubricant,” he said.

    Earlier in an interview, Obi said Abia was where SON was having much problem in the Southeast because manufacturers there were not organised as those in Anambra, Imo and Enugu states. He expressed hope that with such sensitisation programmes, they will overcome the challenges.

  • Leadway presents low premium products for Nigerians’ daily need

    Leadway presents low premium products for Nigerians’ daily need

    The future of insurance industry lies in the retail market embedded in the grassroots. Despite the huge population the country is blessed with, low insurance penetration remains a major issue. The industry has been targeting the upper class, but the market now resides in the middle and the lower classes.

    This is why Leadway Assurance Co. Ltd designed tailor made and innovative products that can meet the daily needs of Nigerians. The company believes that this will go a long way in deepening insurance penetration. our visibility through effective use of technology.

      

    Our Products

    Hospital Cash: It is designed to provide daily financial benefits for hospitalisation arising from accidental injuries or illness of persons below the ages of 65 years. This plan can be accessed for as low as N500 premium per month.

    Home-Flexa: As the name implies, it’s a flexible insurance products that covers personal accident, property loss, property damage, private health plan and family benefit. This product is quite affordable especially for the low-income earners and with a monthly payment of N1, 074.00,  you can claim up to N220,000 benefits within the policy period.

    Motor insurance (Leadway Auto Plan): This is a motor plan which offers coverage against loss or damage to vehicles as well as damage to third party vehicles, properties and injury or death as a result of an accident involving the insured vehicle(s). There are different plans, which includes Silver, Gold and Platinum covers.

    Leadway BOSS (L-BOSS): This is a  product that protects small and medium-size business against various risks like material damage to business, burglary, employee medical expenses in one single plan; for a premium as low as N92,750 depending on the plan chosen. Nonetheless, flexible premium is allowed i.e. it can be paid annually, semi-annually, quarterly or monthly.

    L-Happy: This product protects all your assets including your household members against the risks of fire, theft, personal accident, medical expense etc. on your assets such as; Household building and/or contents, Motor, Personal Accident and Legal Occupier’s liability. It comes in Basic, Bronze, Silver, Gold and Platinum Plan covers with annual limit coverage up to N55 million. Premium can be paid annually, semi-annually, quarterly or monthly basis.

     

    Brief history of Leadway Incorporation

    Leadway Assurance Company Limited was incorporated as a limited liability company in 1970 and started business operation in 1971.  The company’s business operation started  in Kaduna from where it spread to other parts of the federation.  At present, Leadway has over 24 Branch Offices with Kaduna serving as the Registered Office and Lagos, the Corporate Office.

     

    The Founder

    The Founder, Sir (Dr.) Hassan Olusola Odukale’s vision was to build an insurance company that will serve the interest of insureds; responding to losses promptly and able to compete with other international insurers.  This vision was driven by a team that included some of its past chairman Alhaji Hassan Hadejia (immediate Past Chairman) Alhaji Mohammed Faruku and Pastor Jaiyeola Oni (former General Manager).

    Sir (Dr) Hassan O. Odukale insurance business started as an agency representing the interests of Royal Exchange Assurance Nigeria in the northern part of Nigeria. It later transformed to Gaskiya Insurance Brokers before it was re-registered as Leadway Assurance Company Limited.  During this time, Sir Odukale knew little or nothing about the sector. However, by dint of hard work, confidence and honesty Sir Odukale and his partners were able to build a business that has successfully outlived them. The highly honoured insurance practitioner passed on in 1999.  He was a Fellow of Chartered Insurance Institute of Nigeria (1995) and a Paul Harris Fellow.

     

    Business Operations

    At the beginning, the company had to survive on the goodwill of many companies including Northern Nigerian Development Company (NNDC), which gave it rent relief and Bank of the North. The Founder, Sir. Odukale also mortgaged his house to raise the N50,000 statutory deposit to Central Bank of Nigeria, (CBN).

    One of the major factors that kept Leadway afloat over the years was that Sir Odukale and his successors strategically, shifted the focus of the business from traditional motor and life business to achieve stability and phenomenon growth in other allied insurance businesses, even though motor and Life insurance still constitute a big chunk of its business.

    In late seventies the company started operating in Lagos market. The big break from a traditional retail underwriting business to the big corporate underwriter came in the eighties when it started working with brokers. The big break for Leadway was in 1982, when a Broker gave the company the opportunity to participate in the underwriting of some marine insurance businesses. However, one of these policies resulted in a claim of about $1 million.  To the surprise of industry watchers, the claim was promptly paid up. The success of this claim opened a new vista of opportunities for Leadway and drastically changed its business operations as it was able to penetrate into corporate organisations and the lucrative Lagos market.

    Leadership Change

    In 1994, there was a changed in the mantle of Leadership.  Mr. Oye Hassan- Odukale, became the MD/CEO and in less than 10 years, the company was repositioned to an enviable height through the discovery of other sources of investments outside the insurance sector. These includes investment in quoted government bonds, public and private companies.

     

    Financial

    Following the wise investment strategies, the company has always witnessed a steady growth.  For instance, the Net Premium Written grew from  N2.4 billion in 2003 to N3.3 billion in 2004, N3.9 billion (2005) and N4.9 billion in 2006.  Likewise, Profits after Tax over the same period moved from N306 million to N520 million in 2006. The Assets Base also witnessed a tremendous growth. From the N5.9 billion mark in 2003 to N16.4 billion in 2006. The company in the 2016 financial year paid N23.06 billion claims to Nigerians.

     

    Recapitalisation

    The company’s recapitalisation exercise did not impose any major threat to the company.  As at 31st December 2006, the company’s Shareholders’ funds was N9.4 billion.  This amount was internally generated through shareholders. The company’s attraction as a good investment was not limited to Nigerians, as International Finance Corporation (IFC) is currently an institutional investor ($13.2 million) in the company. As at 31st December 2012, shareholders fund stands at N11.7billion.

  • Marketing firm unveils new products

    Growing Circle International Limited (G-Circle), a multi-level marketing company, has unveiled three natural herbal health products – G-Herbal, G-Reliever and G-Lemon – in its Lagos office.

    These products are the company’s modest contributions to the economy and an addition to its number of globally-accepted products.

    Company’s Managing Director Mr. Olalekan Ogundare said its vision is to improve the people’s well-being through manufacturing and sale of quality products.

    He said: “As a multi-level marketing company, we are delighted that history is being made today. In just about two years of our existence, we are officially unveiling three quality, NAFDAC-approved natural health products – G-Herbal, G-Reliever and G-Lemon. “These products were inspired by our research into lifestyle and health needs of contemporary Nigerian masses. Already, they are being exported to other West African countries. G-Herbal is formulated to treat pile, low libido, waist and back pains, infertility and arthritis; G-Reliever is a detoxification agent and helps to treat hypertension, body pain. It also improves heart beat rates.

    “G-Lemon is a blood purifier; it manages high blood pressure, manages diabetes and regulates sugar level.”

    Olalekan added that Growing Circle International Limited is committed to excellence and openness in its operations.

  • SON to crack down on fake products producers

    SON to crack down on fake products producers

    The Standards Organisation of Nigeria (SON) has promised hard times for   manufacturers and importers of fake and substandard products.

    The agency hoped to tackle the menace with the introduction of Product

    Authentication Mark (PAM) on all products manufactured in the country and those due for importation.

    SON’s Director General, Mr. Osita Aboloma, spoke in Ado-Ekiti, the Ekiti State capital, at a training workshop on: The Fundamentals of International Standards Organisation (ISO) 9001-2015 for stakeholders in the Southwest.

    Aboloma, who was represented by Southwest’s Regional Coordinator of the agency, Mrs. Oyenike Owoyele, said no efforts would be spared at sanitising Nigerian markets.

    The SON chief warned that anyone caught would be made to regret his or her action through seizures, destruction or outright closure and blacklisting of the erring manufacturing company.

    SON’s Head of Ekiti State Office, Mr. Ayeni Feyisayo, reiterated the commitment of the agency to rid the Nigerian markets of undesirable products.

  • Manufacturers make case for local products

    Manufacturers have canvassed for the patronage of made-in-Nigeria products.

    They urged the Federal Government to encourage the use of locally manufactured goods.

    Forgo Battery Ltd Joseph Alex Offorjama Chief Executive Officer spoke for his colleagues in Ilorin, the Kwara State capital at presentation of MANCAP to the company by the Standards Organisation of Nigeria (SON).

    Offorjama said government “does campaign on the pages of newspapers for the patronage of locally produced goods and does the opposite. With SON on ground to regulate the standard, they should enforce or follow with the procurement of made in Nigeria product because they can be better than imported ones”.

    He added: “Every sector has its challenges. For us in automotive sector, we urge government to follow up with the details and then in particular support he local company manufacturers by way of patronage. That is the way we need their support the most.

    “The problems we have are that of multiple taxation, high cost of operation and foreign exchange instability, technical knowhow that is expensive to deploy. But all the same, government of recent is looking in the direction of manufactures because they realise that they are their partners in progress. With government readiness, we hope to continue to remain in operation with their support in this direction.

    “The presentation of MANCAP certificate to Forgo Battery Ltd is a recognition of hard work and we are committed to even soaring higher.

    “Battery is not a very complex product. Besides that, we have our teams who know the pros and cons of it. So, for technician, we are emerging economy with improvement on our technical knowhow. As for a company, we are very backed with foreign technical partners; so, we are focused at delivering the best quality that can compete anywhere in the world.

    “We are happy SON has risen to its challenge in recent days to rip the market of substandard products and for us, the bulk of substandard products are imported into this country. With SON readily on ground to regulate the standards of products, I can encourage Nigerians to go for home made products because they are under the watch of SON and their sources are well known. We should campaign made in Nigerian products because they have quality.”

  • NNPC intensifies effort to flood market with products

    NNPC intensifies effort to flood market with products

    More Premium Motor Spirit (PMS) is being pushed to the market by the Nigerian National Petroleum Corporation (NNPC) to ameliorate the current scarcity in the country, the organization said yesterday.

    Its  Group General Manager, Group Public Affairs Division,  Ndu Ughamadu said in a statement in Abuja that  six major marketers -Total, Forte Oil, Oando Plc, MRS, 11 Plc and Nipco Plc, are now loading products round the clock from their various depots in Lagos for onward trucking to all parts of the country.

    The supplies are mostly from cargoes of PMS imported by NNPC which are daily berthing and immediately being made to discharge their products to stem the supply hiccups.

    The imported products are also being supplemented by supplies from the local refineries.

    NNPC assured Nigerians to remain calm and not to engage in panic buying as the end of the challenge is nigh.

    Marketers are strongly advised against hoarding as security agencies, working with industry regulators, would mete out appropriate sanctions to defaulters.

    Earlier in the week, NNPC GMD, Dr. Maikanti Baru, had stated that the Corporation’s one billion litres PMS cargo imports had started to arrive, saying supplies to parts of the country had been doubled to 80million litres per day since the current hiccup in the supply chain was noticed a few days back.