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  • Products recall affecting insurers, says report

    •Technology drives new triggers, warns Allianz

    Defective products recall is causing insurers billions of dollars in claims, says a report by Allianz Global Corporate & Specialty (AGCS).

    The report titled: “Product recall: Managing the impact of the new risk landscape” was the outcome of a survey covering 367 insurance product recall claims from 28 countries across 12 sectors between 2012 and the first half of the year.

    The report, unveiled to reporters in Lagos by AGCS officials, noted that tougher regulation, global supply chains, materials from fewer suppliers and consumer awareness contributed to recalls.

    According to AGCS’claims analysis, the average cost of the significant recall is US$12 million.

    Automotive industry was most impacted, followed by food and beverage sector.

    The report states that emerging triggers include recalls for ethical reasons, cyber recalls from security vulnerabilities or hackers manipulating products, and social media.

    A faulty pedal, the report said, caused a car to inadvertently accelerate and that contaminated peanuts could result in a 25 per cent reduction in sales. Each of these incidents triggered major product recalls, resulting in huge losses, it added.

    AGCS warned that a product-related risk is one of the biggest perils, with recall exposures increasing over the past decade, and could cause more losses. It highlighted the automotive industry as the most impacted, followed by food and beverage and  Information Technolgy/electronics.

    AGCS Head of Global Crisis Management, Christof Bentele, said: ‘’We are seeing record levels of recall activity in size and cost.Tougher regulation and harsher penalties, the rise of large multi-national corporations and complex global supply chains, growing consumer awareness, impact of economic pressures in research and development (R&D) and production and even growth of social media are just some of the contributing factors behind this.

    ‘’Overall, defective product or work is the major cause of recall claims, followed by product contamination with the average cost of significant incident in excess of S$12 million €10.5 million, with the costs from the largest events far exceeding this total,’’ he said.

    ‘’Automotive recalls were the most expensive and large-scale due to their “ripple effect’’ accounting for over 70 per cent  of the losses analysed, which is not surprising given recent record levels of activity in both the US and Europe.

    AGCS Regional Head of Liability, Central & Eastern Europe, Carsten Krieglstein, said more recalls would emanate from the automotive industry.

    He said this was caused by complex engineering, reduced product testing times, outsourcing and increasing cost pressures, noting that the technological shift in the automotive industry towards electric and autonomous mobility would create further recall risks.

    The report cites one of the largest recalls in the auto industry – defective airbags – expected to result in  70 million units across about 19 manufacturers. Costs have been estimated at S$25 billion.

    It added: “This incident exemplifies the growing ripple effect which impacts the automotive sector, but also other industries. Given the use of many common components, a single recall can impact a whole industry.

    “Food and beverage is the second most impacted sector, accounting for 16 per cent of analysed losses with the average cost of a significant product recall claim almost S$9.5 million or €8 million. Undeclared allergens, including mislabelling incidents and pathogens, are a major issue, as is contamination from glass, plastic and metal parts.

    “Malicious tampering and even extortion incidents pose an increasing threat, as well as the growth of food fraud, which has become a major issue, resulting in reputational damage and major losses, as seen in the horse meat scandal in Europe four years ago.”

    The report also notes that products from Asia would continue to account for a disproportionate number of recalls in the US and Europe, reflecting the eastwards shift in global supply chains and historically weaker quality controls in some countries. future recall risks

     

  • Arla Dano launches new products

    Arla Dano launches new products

    On the heels of the end of year festivity, fast-moving milk brand Arla Dano has set its dairy footprint in the flavoured milk powder category with the launch of two variants of flavoured milk powder into the Nigerian market.

    The newly introduced Dano flavored milk powder, which comes in strawberry and chocolate flavours were launched following intense consumer research that informed increasing desire for a convenient and exciting milk product among families especially kids. The Dano Strawberry and Choco Flavoured Milk Powder were developed to fill that gap, promising consumers nutritious products that also satisfy their taste for chocolate and strawberry flavors with a proposition of exciting nourishment.

    The flavoured milk powder from the stable of Dano is rich in protein, carbohydrate, Vitamin D & other vital nutrients, which are required for energy, vitality and a healthy growth.

    According to the Managing Director, TG Arla Nigeria, Mr. Mads Burmester, the variants are an extension of Dano filled milk powder offered in chocolate and strawberry flavours, specially developed to meet the needs of discerning consumers who seek to enjoy the goodness of milk in more exciting ways.

    “The Dano brand seeks to make eating simple and joyful for everyone, providing great tasting, nutritious products which will form a foundation for a good life. Because Milk remains a very important nutrient-packed food, Dano wants to establish a rich milk-drinking culture in Nigeria beyond breakfast occasion. To add excitement in the way we nourish the Nigerian families , we are launching different flavours of our milk powder for consumers that would not compromise on taste, nutrition and a healthy way to start the day right. Driving this excitement will be our new flavoured milk variants -Choco and strawberry- which are great in taste, provide energy, protein, calcium, vitamins, and minerals to keep our teeming consumers nourished all day long,” he said.

    The Category Marketing Manager, TG Arla Nigeria, Ms. Ifunanya Obiakor,  said that the newly introduced variant is a demonstration of Arla Foods expertise in the dairy space to serve and satisfy the craving for nourishing goodness by consumers as revealed from extensive consumer insight and the end of year festivity affords a great opportunity to launch the products.

    “The launch of the Dano Strawberry and Choco Flavoured Milk Powder is intended to drive excitement and relevance in the milk powder category hence our proposition of ‘exciting nourishment’. With the launch of the two variants in this season of excitement, milk just got a little more exciting to some consumers. We know consumers have a taste for chocolate and strawberry flavours but we want them to experience the excitement of a nourishing flavoured milk and in the spirit of the festivity, we have provided our teeming consumers great products to enjoy their beverages, milk shakes, smoothies and other milk-based delicacies in this season and beyond.” She said.

    Obiakor asserted that the variants are manufactured under strict hygienic conditions and are made using the Dano filled milk powder that consumers have enjoyed over the years. “It dissolves well in either hot or cold water and is great for adults and children who need the energy, excitement and nourishment that comes with a yummy cup either at breakfast or at any time of the day.”

    Asked how consumers will be aware of the newly introduced flavored milk powder, Obiakor stated that a series of communication activities riding on a ‘Milk Just Got Exciting’ theme campaign will be rolled out across all media channels. “The variants come in the ever attractive package designs that Dano is known for and would be available in affordable packs at retail outlets across the country.”

    The high point of the event was the unveiling of the two flavored variants using high-end video special effect that is both entertaining and informative about the nutritious benefits of the products.

    With more than 100 years of dairy expertise, Arla Foods has been nourishing the Nigerian consumers with high-quality Milk products. The brand has evolved tremendously and today, it remains locally relevant and benefits from its international footprints in an array of markets in the East, Africa, Bangladesh and parts of Latin America.

  • Growing non-export sector with quality products

    Growing non-export sector with quality products

    The United Nations Industrial Development Organisation (UNIDO), under its National Quality Infrastructure Project (NQIP), funded by the European Union (EU), has moved to entrench quality culture in Nigeria. The Organisation is riding on the crest of its National Quality Award initiative to enhance the saleability and competitiveness of Nigeria’s products and services in the world market. Assistant Editor CHIKODI OKEREOCHA reports that this strategy could be the tonic to revitalise the non-oil export sector upon which the government has anchored its economic diversification agenda.

    The intervention of Nigeria’s development partners in the area of enhancing the competitiveness of the country’s products and services in the global market is coming at an auspicious time.

    This is because it is coming at a time the Federal Government, operators and stakeholders in the export business are desirous of a greater participation in global trade to drive on-going economic diversification agenda.

    Through the National Quality Infrastructure Project (NQIP), which is a European Union (EU)-funded project, but implemented by the United Nations Industrial Development Organisation (UNIDO), the development partners have stepped up efforts at helping Nigeria improve the quality of its products so that they can be sold internally and in the international market.

    The NQIP was established to support the development of the missing standards and accredited testing and certification bodies in Nigeria in order to improve the quality of products and services exchanged in the Nigerian, regional and international market.

    The initiative, which enjoys the support of the Federal Ministry of Industry, Trade and Investment, was aimed at boosting the competitiveness of locally made products at the international market place and ensure their global acceptance from Nigeria.

    However, while the NQIP was still in place, UNIDO, last week, upped the ante by organising the first National Quality Award (NQA) to boost the quality of Nigeria’s products and services. The award ceremony held at Sheraton Hotel, Lagos, was aimed at creating the desired awareness on quality and standards and also build confidence on Nigeria’s goods and services.

    At a pre-NQA media conference in Lagos, the Chief Technical Advisor, NQIP, UNIDO, Dr. Shaukat Malik, said the purpose of the award was to drive the sustainability of quality culture in Nigeria.  He said UNIDO remained committed to entrenching quality culture and ensuring that Nigeria adheres to international best practices related to quality.

    According to Shaukat, quality awards have proved powerful tool for boosting the economies of developed countries of the world where the awards have been in place and Nigeria will not be an exception. He said, for instance, that Japan came up with the quality award in 1951, after World War 11.

    Similarly, the United States of America and the EU started their quality awards in 1988 to improve the quality of their companies and boost their economies.

    “More than 40 countries in the world are running quality awards every year. It’s popular in the Middle East, China, South Africa and others because they are getting the benefits from increased productivity and competitiveness, Shaukat added.

    The UNIDO Chief Technical Advisor explained that there are four levels in this year’s quality awards and that in each level there are three organisational categories.

    While Category A is for larger organisations with 100 employees, Category B is for medium organisation with more than 20 to 100 employees. Category C is for small organisations with one to 20 employees.

    The Quality Infrastructure & International Trade Expert for UNIDO, Mr. Simeon Umukoro, said the quality award is criteria-based. Any business operating in Nigeria is eligible to apply for an award in one of the three categories, depending on its size.

    According to Umukoro, winners, who are local businesses and entrepreneurs, will be determined based on a set of criteria derived from the standards issued by the International Organisation for Standardization for quality management system requirements (ISO 9001:2015) and for performance improvement (ISO 9004).

    The NQA of Nigeria also corresponds to the rules and standards of the Economic Community of West African States (ECOWAS) on quality awards. The award was created in line with the ECOWAS region approved criteria for national quality awards, adopted at the 781st Ordinary Session of the ECOWAS Council of Ministers in Abidjan in December 2013.

    Umukoro said the quality awards will increase the awareness of Nigerian companies and entrepreneurs on quality and standards. He said it will also boost consumer confidence in Nigerian products and services while also promoting healthy competition among manufacturers and service providers.

    “What we consume will become safer; services will improve and patronage will be high,” the Head, Quality Control, Nigeria Commodity Exchange (NCX), Dr. Khadijat Addulaziz, said. She expressed optimism that the national quality award will address the national embarrassment caused by the rejection of agric exports from Nigeria by the importing countries.

    Dr. Abdulaziz is right. The United States (US) recently rejected 72 tonnes of yam exported by Nigeria due to poor quality. It was the latest in the series of rejection of export-bound agric products from Nigeria by US and European Union (EU).

    Before then, five containers of beans exported from Nigeria to the Republic of Ireland were rejected and returned by the importers. The products were reportedly filled with weevil.

    The season of rejection of Nigeria’s export-bound agric products is being blamed on dearth of infrastructure and Nigeria’s export regulatory agencies’ failure to adopt a quality management system approach to improve the quality of agric produce exports.

    According to operators and experts, this is bad news and a major setback for an economy severely battered by recession, requiring urgent stimulation of the non-oil export sector to give impetus to the economic diversification agenda.

    Recall that in the heat of the crisis over the rejection of beans exported from Nigeria, for instance, the Minister of State for Agriculture, Mr. Heineken Lopobiri, had describe it as “a national embarrassment”. He said the five containers of beans were returned to Nigeria because weevils were detected in them by the Republic of Island Quarantine Service.

    He said the containers were exported without the knowledge of the Nigerian Agriculture and Quarantine Service, hinted that government would return the Quarantine Service back to the ports to partake in the examination of import and export containers.

    He also said henceforth, for any agro-product to leave the country, it has to be certified by the Quarantine Service, as this is the global practice in the United States and other developed countries.

    However, Lopobiri’s promises that government will put its house in order to avoid a repeat was still in place when the US authorities turned back 72 tonnes of yam exported by Nigeria to that country over issues around poor quality and packaging.

    Even if Lopobiri had made good his promise return the Quarantine Service to the the ports, it still does not resolve the more fundamental issue of lack of laboratories for testing and certifying made-in-Nigeria products before export.

    The lack of quality infrastructure especially laboratories to aid certification of locally produced goods for export market has continued to erode the competitiveness of locally made products in the international market.

    A national quality infrastructure, according to experts, is a system of institutions, which jointly ensure that products and services produced in the country meet predefined specifications. It also provides technical support to companies so they can improve their production processes and ensure compliance with regulations or international requirements.

    The lack of it is widely believed to be partly responsible for Nigeria’s rising unemployment. It is also the reason why Nigeria is not globally competitive. Her products and services lack global quality certification and are denied access to markets in developed economies.

    Yet, agriculture and export are two key segments of the non-oil economy, which government is now focusing on in the hope of diversifying the economy. The sector believed to be more inclusive and growth-oriented. It is also more sustainable and characterized by high economic linkages.

    However, the Director General, National Productivity Centre (NPC), Dr. Kashim Akor, blamed the sector’s under-performance on poor packaging. Speaking at the pre-NQA media conference in Lagos, Akor whose Centre is a parastatal under the Ministry of Industry, Trade and Investment, noted that Nigeria is a country with rich, diverse agric and other non-oil export products, “but our problem is packaging.”

    “So the quality award will address the issue of poor packaging and ensure salability of Nigeria’s export products. It will ensure that whatever is produced is accepted globally,” the NPC DG said, adding, “We want to promote quality consciousness and to do this, there must be constant sensitisation.”

    Akor, who noted that quality is a marathon race that has no finishing point, stated that the NPC and Nigeria’s development partners particularly UNIDO remained committed to driving the quality culture in the private and public sectors in Nigeria. He said the award process is very thorough, meticulous and the jury is as transparent as possible.

    It was learnt that UNIDO’s inauguration of the NQA to stimulate healthy competition that will drive quality consciousness was an addition to its long history of support and intervention in Nigeria. For instance, the Organisation, few years back, made available 12 million euros for the establishment of National Accreditation System in Nigeria.

    In doing so, UNIDO, through its Country and West Africa Director, Dr. Patrick Kormawa, was emphatic that “You cannot improve on your Gross Domestic Product (GDP)) if you do not produce products in Nigeria and sell them in the international market.

    “We also will not provide the needed jobs in this country if we are not able to manufacture products here and trade them in the international or regional market.”

    “But for us to be able to trade, we need to at least, meet basic quality requirements; most of the products that are made in this country are rejected because they do not meet certain basic quality requirements.”

    Kormawa expressed hope that the 12 million euros commitment by UNIDO  will help Nigeria produce a legislation that will contain a National Quality Policy (NQP), establish an internationally recognised National Accreditation Body that will vet the activities of regulatory agencies such as Standards Organisation of Nigeria (SON) and the National Agency for Food, Drugs Administration and Control (NAFDAC).

    He said it will also help develop a National Metrology Institute to ensure that instruments are of international standards, improve the capacity of the Organised Private Sector (OPS) to conform to standards as well as establish conformity assessment bodies.

    It will also enhance the powers of the Consumer Protection Council (CPC) and other consumer organisations to sensitise consumers on quality standards as well as ensure improved consumer protection.

  • WHO: how to reduce substandard products in developing countries

    WHO: how to reduce substandard products in developing countries

    • Reports urge govts to take action

    One in every 10 medical products circulating in the low and middle income countries has been estimated to be either substandard or fake, the World Health Organisation (WHO) has said in its latest two reports.

    The implication is that people are taking medicines that either fail to treat or prevent disease. Not only is this a waste of money for individuals and health systems that purchase these products, substandard or falsified (fake) medical products can cause serious illness or death.

    According to WHO Director-General, Dr Tedros Adhanom Ghebreyesus, “substandard and falsified medicines particularly affect the most vulnerable communities. Imagine a mother, who gives up food or other basic needs to pay for her child’s treatment, unaware that the medicines are substandard or falsified, and then that treatment causes her child to die. This is unacceptable. Countries have agreed on measures at the global level – it is time to translate them into tangible action.”

    Since 2013, WHO has received 1500 reports of cases of substandard or falsified products.  Of these, anti-malarials and antibiotics are the most commonly reported. Most of the reports (42per cent) come from the WHO African Region, 21 per cent from the WHO Region of the Americas, and 21per cent from the WHO European Region.

    This is in tandem with Nigerian Agency for Food and Drug Administration and Control (NAFDAC)’s report- In July of 2013, it seized 150,000 doses of a falsified emergency contraceptive.

    This is likely just a small fraction of the total problem and many cases may be going unreported. For example, only eight per cent of reports of substandard or falsified products to WHO came from the WHO Western Pacific Region, six per cent from the WHO Eastern Mediterranean Region, and just two per cent from the WHO South-East Asia Region.

    “Many of these products, like antibiotics, are vital for people’s survival and wellbeing,” said Dr Mariângela Simão, Assistant Director-General for Access to Medicines, Vaccines and Pharmaceuticals at WHO, “Substandard or falsified medicines not only have a tragic impact on individual patients and their families, but also are a threat to antimicrobial resistance, adding to the worrying trend of medicines losing their power to treat.”

    Prior to 2013, there was no global reporting of this information. Since WHO established the Global Surveillance and Monitoring System for substandard and falsified products, many countries are now active in reporting suspicious medicines, vaccines and medical devices. WHO has trained 550 regulators from 141 countries to detect and respond to this issue.  As more people are trained, more cases are reported to WHO.

    WHO has received reports of substandard or falsified medical products ranging from cancer treatment to contraception. They are not confined to high-value medicines or well-known brand names and are split almost evenly between generic and patented products.

    In conjunction with the first report from the Global Surveillance and Monitoring System published today, WHO is publishing research that estimates a 10.5 percent failure rate in all medical products used in low- and middle-income countries.

    This study was based on more than 100 published research papers on medicine quality surveys done in 88 low- and middle-income countries involving 48 000 samples of medicines. Lack of accurate data means that these estimates are just an indication of the scale of the problem. More research is needed to more accurately estimate the threat posed by substandard and falsified medical products.

    Based on 10 per cent estimates of substandard and falsified medicines, a modeling exercise developed by the University of Edinburgh estimates that 72 000 to 169 000 children may be dying each year from pneumonia due to substandard and falsified antibiotics. A second model done by the London School of Hygiene and Tropical Medicine estimates that 116 000 (64 000 – 158 000) additional deaths from malaria could be caused every year by substandard and falsified antimalarials in sub-Saharan Africa, with a cost of US$ 38.5 million (21.4 million – 52.4 million) to patients and health providers for further care due to failure of treatment.

    Substandard medical products reach patients when the tools and technical capacity to enforce quality standards in manufacturing, supply and distribution are limited. Falsified products, on the other hand, tend to circulate where inadequate regulation and governance are compounded by unethical practice by wholesalers, distributors, retailers and health care workers. A high proportion of cases reported to WHO occur in countries with constrained access to medical products.

    Modern purchasing models such as online pharmacies can easily circumvent regulatory oversight. These are especially popular in high-income countries, but more research is needed to determine the proportion and impact of sales of substandard or falsified medical products.

    Globalisation is making it harder to regulate medical products. Many falsifiers manufacture and print packaging in different countries, shipping components to a final destination where they are assembled and distributed. Sometimes, offshore companies and bank accounts have been used to facilitate the sale of falsified medicines.

    “The bottom line is that this is a global problem,” said Dr Simão. As, “Countries need to assess the extent of the problem at home and cooperate regionally and globally to prevent the traffic of these products and improve detection and response.”

  • Yultide: Binatone dazzles customers with new products

    Yultide: Binatone dazzles customers with new products

    Electronic Manufacturer,   Binatone   Industries,   has   introduced   a   wide   range   of affordable and value for money quality products into the Nigerian electronics market to cater for the various needs of its many customers during the festive season.

    Unveiling the company’s products  for its teeming customers, Mr Banerjee said these would include the  first of its kind, innovative, new Binatone tower music fan with Bluetooth pairing, Designer ITAL 1660 Stand Fan , New 18″ stand fan ES1850, TS 2020 –unique high power 20″ stand fan, Blender model BLG 595 with unbreakable jug and ice crushing facility, JE 580 fresh juice extractor, a range of three litre and four litre jug Kettles and the energy efficient Ceramic Cooking Plate for quick heating and cooking. He stated that customers will also have the unique opportunity of buying Binatone’s new pressure pot with free transparent lid, new economy model table top gas cookers, heavyweight   and   high   power1200w   dry   irons,   economy   value   for   money   steam   irons,   and premium garment steamer for ironing “babaringa” and “boubou” clothes.

    To take care of destructive voltage fluctuation, he pointed out that the company has a large stock of quality and durable voltage stabilizers on table top as well as wall mount insertions and a range of uninterrupted power supply solutions

    ‘’Another opportunity awaits members of the public to buy Binatone’s top of the range products   during   the   yuletide   as   we   offer   assurance   to   our   customers   with   two   years warranty on every Binatone product.

    ‘’Binatone wants to use the opportunity of end of the year bonanza to encourage our teeming customers to shop for the Christmas and New Year celebrations” Mr Banerjee added.

  • Recession exit: Manufacturers renew push for local products

    Recession exit: Manufacturers renew push for local products

    Mostly driven by an improvement in oil prices and production volumes, the economy is out of recession and the manufacturing sector is also gathering momentum due to improved foreign exchange liquidity. But, to sustain the recovery tempo, manufacturers are seeking for increased patronage of locally-made products by the government. They argue that the government, being the single largest spender in the economy, holds the ace to boost the industrial sector by increasing its patronage of made-in-Nigeria goods.  Assistant Editor CHIKODI OKEREOCHA reports that the government’s patronage of local products will increase revenue through taxes and job creation, among other positive spin-offs.

    Manufacturers are unrelenting in their push for patronage of locally-made products. Even before the exit from recession, their heart cry was the promotion of goods and services produced locally. Their argument: it is the fastest way of pulling the country out of recession.  According to them, cutting down on the insatiable appetite for imported material to the detriment of locally-produced ones will reduce the pressure on Foreign Exchange (forex) triggered by the nation’s huge import bills and low receipts from exports.

    They further argue that curtailing the growing demand for forex for consumption, rather than capital products and equipment; will strengthen the local currency (the Naira).

    Besides, the patronage of locally-produced goods will stimulate economic growth by revitalising the manufacturing sector and boosting its competitiveness thereby creating jobs.

    Bouyed by the benefits, local manufacturers have again renewed their clamour for increased patronage of their products, following the country’s exit from recession, stating that doing so will sustain the recovery of the economy.

    The National Bureau of Statistics (NBS) has confirmed in one its reports gave the economy, which slipped into recession for the first time in more than two decades in August last year, a clean bill of health. According to the NBS report, in the second quarter of 2017, the nation’s Gross Domestic Product (GDP) grew by 0.55 per cent (year-on-year) in real terms.

    The Bureau described as an indication that the economy has exited recession after five consecutive quarters of contraction since the first quarter of last year. It attributed the recovery to improved performance of oil, agriculture, manufacturing and trade sectors of the economy.

    Experts at multinational consulting firm PricewaterhouseCoopers (PwC) Nigeria also confirmed the out-of-recession claim. The PwC attributed the recovery partly to a sharp recovery in the oil sector, driven by an improvement in global prices and production volumes.

    The experts said that in addition, the non-oil sector recorded a positive growth for the second consecutive quarter, boosted by a strengthening of the broader manufacturing sector, reflecting impact of improved foreign exchange liquidity.

    In a report made available to The Nation, PwC experts led by Partner & Chief Economist,  Dr. Andrew S Nevin, said that besides the improvement in real GDP, the performance in other macro-indicators suggest that the economy is on track for a broad-based recovery.

    The report entitled: “Nigeria’s Q2’17 GDP: From Recession to Recovery” was a projection that Nigeria’s real GDP will attain full recovery by 2019, with growth moving closer to its long-term trend of 6.7 per cent.

    Latching on to the recovery trend, particularly in the manufacturing sector, manufacturers are renewing their clamour for increased patronage as a viable, credible and win-win strategy to sustain and strengthen the sector’s recovery process.

    At the forefront of the push is the President, Manufacturers Association of Nigeria (MAN), Dr. Frank Udemba Jacobs, who has identified the government as the largest single spender and could drive industrial development and economic growth by increasing its patronage of locally-made products.

    Jacobs, who spoke in Lagos at the 50th Annual General Meeting (AGM) of Ikeja Branch of MAN, appealed to the government to increase its patronage of made-in-Nigeria products, noting that this will boost the manufacturing sector, resulting to increased revenue to government through taxes and employment creation, among others.

    The AGM had as its theme: “Building a Competitive Manufacturing Sector: Road Map to Nigeria’s Economic Recovery”, with special emphasis on “Monetary and Fiscal Policy Measurers: Catalysts to Restoring the Growth of the Real Sector”.

    It offered a platform to review the activities of the branch, the performance of the manufacturing sector as well as the economy in the past year.

    Udemba, in his address at the AGM, noted the Federal Government’s efforts at reviewing the current Public Procurement Act (PPA) at the federal level and the introduction of the Executive Order on improved patronage of made-in-Nigeria products as well as the current build up against smuggling and counterfeiting activities in the country.

    The MAN president, who was represented by the Vice President of MAN, Lagos Zone, Rev. Isaac Ade Agoye, however, said it was pertinent to note that public procurement is not just mere purchases, but a strategic fiscal tool that has been used by other countries, including advanced nations, to develop their manufacturing sector.

    The Federal Government, through the Minister of Industry, Trade & Investment, Dr. Okechukwu Enelamah, announced that at least 40 per cent of government procurement spending will be on made-in-Nigeria goods and services.

    The minister also said the government was working at moving up 20 places up the ranking on the Ease of Doing Business index this year and it has to start from growing made in Nigeria.

    The development was sequel to the signing of three strategic Executive Orders by Vice President Yemi Osinbajo, when he held the forte for President Muhammadu Buhari, to promote patronage of made in Nigeria products, transparency and ease of doing business in Nigeria.

    Going forward, Enelamah said that any document issued by any Ministry, Department and Agency (MDA) for the solicitation of offers, bids, proposals or quotations for the supply or provision of goods and services shall expressly indicate preference to be granted to domestic manufacturers, contractors and service providers and the information required to establish the eligibility of a bid for such preference.

    All documents of solicitation shall require bidders or potential manufacturers, suppliers, contractors and consultants to provide a verifiable statement on the local content of the goods and services to be provided.

    Defining ‘local content’ as the amount of Nigerian or locally-produced human material resources utilised in the manufacture of goods and services, Enelamah said that made-in-Nigeria products shall be given overwhelming preference, or at least 40 per cent, of the procurement spent on locally manufactured goods and service providers.

    He listed some of the priority items to include: uniforms and footwear; food and beverages; motor vehicles; pharmaceuticals; construction materials; information and communication technology, furniture & fittings and stationery.

    The Nation, however, learnt that government agencies have not lived to the manufacturers’ expectations in their compliance with the Executive Oder on patronage of local goods and services.

    The MADs’ attitude has prompted the manufacturers and other private sector operators’ renewal of advocacy with the hope of getting more government patronage.

    Justifying the MAN’s position at the AGM, Jacobs said: “It is an established fact that when we buy foreign goods, we pay the returns to factors used in producing them in the originating countries; that is to say that we pay wages, rent, interest and profit to foreign countries with our local resources.”

    He said greater patronage of made-in-Nigeria products, on the other hand, will enhance the manufacturing sector and in turn, result to increased revenue to government through taxes. It will also reduce social vices as well as guarantee peace.

    The MAN chief specifically called on the Lagos State government to set a minimum percentage threshold for its purchases of made-in-Nigeria products.

    He said: “At the federal level, a 40 per cent minimum threshold of purchase has been fixed for Small and Medium Enterprises (SMEs) through the Executive Order One.

    “Also, we want you (Lagos State government) to give an acceptable Margin of Preference (MoP) of about 35 per cent in terms of price consideration for those products as against foreign ones.

    “This will mean that even if local products cost a little more than foreign ones, the local ones should be patronised within the set margin of preference,” Udemba said.

    According to him, this is in consideration of the prevailing high cost of the operating environment in and the need to keep local manufacturing companies in production. Besides, he said there is the need to retain jobs and create new ones.

    Udemba pleaded with Governor Akinwunmi Ambode and his colleagues in other states to ensure patronage of made-in-Nigeria products in their states’ procurement policies and processes.

    The thinking is that the made-in Nigeria campaign must be driven by all the states if the targeted objectives must be met.

    Not a few operators and stakeholders in the various sectors believe that if the made-in-Nigeria campaign must succeed, it should not be the challenge of the Federal Government alone; the 36 states must have a role to play.

    A voice for robust monetary, fiscal and exchange rate policies

    Prof. Ademola Oyejide of the Faculty of Social Science, University of Ibadan, who was guest lecturer at the AGM, noted that countries that have developed did so on the back of the productivity of the manufacturing sector.

    In his presentation entitled: “Monetary, Fiscal and Exchange Rate Policy Measures for Restoring Nigeria’s Real Sector Growth,” Oyejide said the manufacturing sector can only be productive and competitive with the appropriate mix of macroeconomic policies.

    According to him, having more than one exchange rate distorts the market and hurts the manufacturing sector.

    Dr. Okechukwu Kelikume of the Department of Economics, Lagos Business School (LBS), noted that indeed, Nigeria exited recession, starting from the second quarter of 2016, precisely February 2016, when oil price started moving up gradually.

    He, however, said that if the recovery momentum must be sustained and strengthened by riding on the back of the renewed campaign for patronage of local goods, it was important to ensure that “if we make policies, we must also stop distortions.”

    Citing the government’s policy to encourage local production of rice, the expert said it was critical to halt the distortion in the policy by way of halting the smuggling of the product.

    For instance, he said that at a time a bag of foreign rice cost about N13, 500, the price of a bag of local rice cost N17, 500. He said even though the policy to encourage local production of the product was in place, it made more economic sense for consumers to buy foreign rice because it was cheaper.

    Kelikume, who blamed it all on smuggling and high of doing business in the country, traced manufacturing contribution of a meagre 0.6 per cent to the GDP to the inability of the government to curb smuggling.

    Govt re-assures real sector operators

    In his remarks through the Commissioner for Commerce, Industry & Cooperatives, Prince Rotimi Ogunleye, who represented him at the AGM, Ambode said that his administration has intensified efforts at making the environment conducive for manufacturers and other private sector operators to thrive.

    He listed some of the efforts to include the state’s contribution to improving Nigeria’s rating on the World Bank’s Ease of Doing Business Index; automation of Lands Bureau to facilitate unhindered and smooth access to members of the public and other stakeholders who transact business with the institution; aggressive infrastructure development across the metropolis.

    Prof. Osinbajo had also assured that the Federal Government will not rest on its oars on improving the economy. He said the latest impressive ranking in the World Bank’s latest ‘Doing Business’ report, was an indication that the President Buhari-led administration’s reforms were producing results.In the World Bank report, Nigeria achieved the unprecedented step of climbing 24 places in the rankings, and earning a place on the list of 10 most improved economies in the world.Many stakeholders have described news as cheery for real sector operators, even as some of them argue that if government could complement this by increasing its patronage of locally made products, the current economic recovery momentum will be sustained and strengthened.Some operators who spoke with The Nation have advocated the urgency to address the lack of supportive infrastructure and challenging monetary and fiscal policy environment that weaken the manufacturing sector’s capacity to produce goods and services for local consumption.

  • MAN decries high duties on imported finished products

    MAN decries high duties on imported finished products

    •Osinbajo inaugurates $15m firm 

    The Manufacturers of Nigeria (MAN) has decried the high duty rates on imported finished products.

    The association added that it is capable of discouraging indigenous investors from investing in the country.

    MAN President Dr Frank Jacobs, who spoke in Ilorin, the Kwara State capital on the sideline of the commissioning of Syringes and Needles Complex, put culmuinative duties on imported finished products to the country at 30 per cent.

    Vice President Yemi Osinbajo commissioned the $15 million syringe and needle production plant owned by HMA Medical Limited.

    The company has an annual installed capacity of 200 million syringes and 350 needles.

    Dr Jacobs added that in some countries, duties on imported finished products are just five percent.

    “This does not encourage indigenous investors; I urge government to reduce the rates. A reduction in import duty rates will encourage more people to delve into manufacturing thus creating more jobs.

    “The environment should be more welcoming and conducive for many other investors to venture into syringes and needles.

    “Highly patriotic people venture into manufactured in Nigeria. It takes large heartedness and risk taking to vent into manufacturing in Nigeria,” he said.

    He hailed Federal Government’s ease of doing business policy, adding that there has been a remarkable changes.

    Prof Osinbajo said the Federal Government would continue to create an enabling environment for indigenous industries and manufactures to thrive and creates jobs even as he commended the floating of the plant.

    The company chair, Ayodele Shittu said the company intends to expand the plant production capacity from the current 200 syringes and 350 per annum to 500 and 700 million respectively in the next three years.

    He said: “We are also expanding into construction of a state of the art intravenous infusion plant ,which we project to commission in the next 24 months .HMA Medical Limited will  at the end of this expansion provide more than 1000 jobs to our teeming youths,’’ he said

    Shittu said the finished products from the plant would also be exported to the Economic Community of West African States (ECOWAS)  and African Union (AU) countries, which he said would save and earn Nigeria scarce forex.

  • ‘Increasing quality of electrical products our priority’

    The Executive Chairman, General Electrical Dealers Association of Nigeria (GEDA), Alaba branch, Felix Nwagu, has said increasing the quality of electrical products remains paramount to the association to checkmate counterfeiting of electrical products.

    Nwagu stated that focusing on quality has become imperative considering the dangers substandard electrical products pose to lives and properties. He spoke during the launch of a historical book on the association. He noted that measures such as workshops and seminars organised in partnership with government agencies were put in place to curb the damage and influx of substandard electrical products into the market.

    He noted that some of the agencies the association collaborates with include the Consumers Protection Council, Standard Organisation of Nigeria, and the Nigeria Customs Service, among others.

    Nwagu stated that such meetings have helped broaden the horizons of members in doing business in line with policies of the government’s agencies. He also spoke on the achievements of the association at the public presentation of the ‘history book’ and award.

    “Aside the seminars and workshops, we have put in place a disciplinary committee to combat substandard electrical products, “ adding that following the envisaged improvement in the power sector, some members with international business experience are building modern and state-of –the-art facilities where electrical products could be assembled and manufactured in the country.

    Speaking on the book, he said, this was an effort to codify the efforts.

  • ‘PPMC received $205m from Duke Oil for products’

    The Petroleum Products Marketing Company (PPMC) received a total of $205.2million from Duke Oil for products traded between January 2016 and September 2017.

    PPMC Managing Director,  Umar Ajiya told House Representatives Ad-hoc Committee investigating alleged revenue leakages in the Oil and Gas sector in the period under review.

    The Deputy Manager, Public Affairs Department, Mohammed Umar, made this known in a statement yesterday.

    He said the products traded within the period, were fuel flow (Low Pour Fuel Oil) and NAPHTHA.

    He said as a fall-out of the on-going restructuring of the NNPC, it was agreed that Duke Oil be given the two products to sell on behalf of the NNPC in line with its mandate as international trading company as well as a wholly owned subsidiary of NNPC.

    ‘’The current operating model allows PPMC to pass the volumes to DUKE OIL to trade and remit to the PPMC, both the value of product invoiced it and administrative  charge,’’ the MD stressed.

    He said the arrangement was not intended to create a monopoly, but rather to empower Duke Oil to function properly, pointing that no money missing anywhere.

    Duke Oil before now, was not operating like it should as an international trading company.

    The chairman of the committee, Rep. Jarigbe Agom Jarigbe, requested for more documents to support the presentation summited to the Committee.

    Ajiya, according to the statement faulted some reports that have earlier misquoted  him on the remitted figure and the statement that Duke Oil  does not cooperate with PPMC in making their remittances, while reporting the presentation to the Committee.

    Ajiya implored the media to always check their facts before going to press to avoid misrepresentation, litigation.

  • Ozone Cosmetics introduces new products

    N.N FEMS Industries, a leading manufacturer of hair care range of cosmetics in Nigeria, has introduced three new products – the Ozone tube relaxer, Apple one application pack and the Apple weave gloss. The company, which prides itself on making quality hair care products, announced this at a media briefing in Lagos.

    Ozone cosmetics is positioned as a premium brand, which offers all the solutions needed by consumers for major hair problems. Its innovative formula enriched with natural extracts provide outstanding results to the hair without any side effects and gives consumers social confidence and acceptance.

    Speaking at the briefing, Head, Sales & Marketing, Francis Omolaiye, said: “We are very excited to unveil these products, which are the first of their kind in their range. The ozone relaxer is innovative, handy and portable. It pampers the hair while beautifully relaxing and straightening it. Our goal is to beautify Africa with quality products. The Ozone tube relaxer conditions and moisturizes hair for healthy shine and softness during the entire relaxing process.”

    Omolaiye disclosed that the company has invested in the talent of constantly innovating to continue to push the limit of excellence in the cosmetics industry and reaffirm its leadership by delivering quality range of products. “We have fortified the team with young and vibrant executives and we are constantly evolving to ensure that we deliver the best range of products that will make our competitors green with envy, and also make our customer beam with pride by associating themselves with our brand,”he said.

    Omolaiye further noted that the product ensures that hair is soft to touch, silky and straight, and looks healthy after using the product because it contains protein complex that strengthens and replenishes conditioning agents into the hair. The product is available in 175g pack size.

    Over the years, there has been an increase in demand for this product. The product is said to be helpful preserving five signs of healthy hair; moisture, shine, strength, softness and body.

    Also speaking at the event, the Chief Operating Officer, Mr Chudi Igwe reassured stakeholders that the organisation will be at the forefront of innovation by pushing boundaries to ensure that it is driven by its unwavering commitment to customer satisfaction and excellence.

    The new Apple one application pack is an all-in-one, no mix relaxer system that is uniquely formulated to impart advanced moisturising and softening effect on hair during the entire application process. It conditions and transforms naturally curly and kinky hair into shiny permanently relaxed/straightened hair. The product is said to leave hair softer, silkier and more manageable during styling for beautifully straight, smooth and strengthened hair with radiant shine. It contains conditioning crème relaxer, neutralising shampoo, instant hair conditioner, super setting lotion, hair oil and coconut oil hair conditioner.