The aluminum industry is in dire straits. It has lost a huge market share to Chinese products. It is also faced with dwindling resources. But market watchers believe that all hope is not lost for the sector, which they say, can create 80,000 jobs, if the macro-economic environment is right, writes AKINOLA AJIBADE.
With a high unemployment rate, the government has a major challenge in its hand. How can it tame this unemployment monster in order to grow the economy?
Statistician-General of the Federation Dr Temi Kale said about 20.3 million Nigerians are unemployed. The figure, he said, represents 30 per cent of the working population, adding that the figure is likely to increase in the next few years. He said unemployment has untold effects on the economy, calling for more proactive measures on the issue.
The National Directorate of Employment (NDE) is also concerned about the huge number of unemployed graduates in the country. It said the country would experience job crisis, if steps were not taken to reverse the trend.
The United Nations, in its 2012 Economic Index for developing countries, said Nigeria has one of the fastest growing unemployment rates in Africa. The body said the country, in spite of its huge mineral resources, has refused to grow its economy to an enviable height. It said Nigeria has a lower per capita income because its people live on less than $2 per day.
To tackle the problem, experts advise the government to revive the ailing sectors of the economy. They said the aluminum industry is under threat of extinction, and must be revamped. They said Nigeria has huge iron ore reserves, arguing that it stands a better chance of producing aluminum products optimally. According to them, the industry can easily generate between 70,000 to 80,000 jobs, once there is an enabling environment.
Speaking on the issue, the General Manager, Human Resources, Tower Aluminum Rolling Mills, Mr Olawale Fatolu, said the industry would easily create 50,000 jobs or more in the first two years of stable power supply in Nigeria.
Fatolu said aluminum companies would create jobs, irrespective of their product lines. He said the industry is losing jobs, instead of employing more hands to meet its needs. He said there is a huge job prospects in the sector, advising the government to make the environment conducive for the operators.
Government’s reduction of tariffs on importation of semi-finished and finished aluminum products from 20 per cent to five per cent has affected local manufacturers. He noted that local firms were forced to cut down operations and workforce. Fatolu said the industry boasts of untapped job opportunities.
He said: “I conducted a research on the aluminum sector recently. The research shows that the industry boasts of 4,000 jobs. Fifty per cent of these jobs have been lost in the past few years. The reason is because many companies have downsized, while others have closed down and instead resort to importation of finished products. From the research, it was discovered that the industry needs at least 50,000 jobs now to survive. More jobs are expected to be created because different lines of products can be produced by the aluminum companies. It is either the government wakes up to its responsibility by providing adequate infrastructure or the industry is forced into extinction.”
He said the industry provides jobs for skilled, semi-skilled and unskilled workers because of its nature. Semi-skilled workers are drawn from technical colleges, adding that they still need to be trained.
These workers, he said, are technicians employed to work in aluminum rolling mills, extrusions among other areas. Aluminum extrusion is where domestic items, such as cooking pots, and plates are produced.
“The unskilled workers are gardeners, cleaners and office attendants. The skilled personnel are mechanical and electrical engineers. Others are quality control officers, and accountants. Those employed in electrical department produce coils and circles used in producing pots,” he added.
The Chairman, Steel and Engineering Workers’Union of Nigeria,Comrade Uthman Momoh, said the major problem facing the industry is government’s policies. Momoh said each aluminum company can produce thousands of jobs, if adequate facilities are provided. He said many engineering graduates would get jobs, provided the government provide facilities to make the industry work.
Said he: “Every year, aluminum companies employ fresh engineering graduates, and train them for between six months to one year to fit into the system. With the industry facing critical problems, it is hard for such graduates to get jobs. If government can provide necessary incentives for the industry, it would be easier for graduates to get jobs.”
He said technicians are badly needed in aluminum companies, urging the government to provide infrastructure to reduce unemployment in the sector.
A member of Business Club, Ikeja (BCI), Lagos, Mr Thompson Adebowale, attributed inability of companies to produce optimally and further create jobs to poor power supply.
Adebowale said companies, such as Cadbury Nigeria Plc use alternative power throughout the year, due to the nature of its products. He said chocolate material coagulates once there is a power failure. He said the development has prevented the companies from using national grid.
Adebowale, who is a former Managing Director, Berger Paints Plc, said manufacturing companies not only using chemicals a lot, but also record losses when there is interrupted power supply.
He said steel and allied companies consume more power, and require stable energy supply to function.
“The only way by which government can galvanise the potentials of the economy is to generate employment opportunities. There is a wide infrastructural gap in the country. Of note is power. Many companies cannot produce optimally due to power problem. Steel industry has collapsed because of inability of companies to generate enough power for operations. I think there are huge employment prospects in companies that use steel by-products,” he added.
According to him, the potential in the aluminum industry are huge and must be harnessed for economic growth. He advised the government to provide a flexible tax regime, improve power supply, curb the excesses of manufacturers of sub-standards products to help grow the economy.
“Once good regulatory framework is in place, it would not be hard seeing aluminum companies competing favourably with their counterparts aboard. When this happens, thousands of jobs would be created and the economy would be better. We can create millions of jobs for Nigerians, if we can get it right in the country,” he added.
