Friday, October 1, 2010
A Nation at 50
A Nation at 50
Ayodele Samuel
Senior correspondent
At this historical moment and time, Nigeria makes a replication of the time when Israel was in the wilderness. Though the journey was tough then, Israel knew with certainty that she was heading for the Promised Land - Canaan , Sadly, Nigeria does not yet know where her own destination lies even at 50.
After 50 years of political independence, Nigeria still gropes in the dark; walking without a definite direction, it is pathetic as the world daily watches the acclaimed giant of Africa helplessly moving about with the whirlwind of unfortunate circumstances.
The Nigeria experience 50 years ago indeed has been a story of lamentation on all sides.
Visions and targets set for development by our founding fathers 50 years ago have all woefully failed. And yet there is no end in sight to further failure.
As the nations begins another journey the nation certainly needs a way forward, a break through from a nation where poverty reigns supreme in the midst of plenty: a country that is known for production of; and renown for export of crude oil but import refined and finished petroleum products to the detriment of its economic and political progress; a country where N17bn is set aside to celebrate her 50th independent anniversary at the expense of the masses that are denied basic necessities of life.
A country where 70 percent of it citizen live below 150 naira per day but awarded more than 70 percent of its annual budget to salaries and allowances of political office holders .
It is no more news that basic infrastructures in the country are in deplorable conditions. No good roads, no basic educational structures, our hospitals have become transit point to mortuary due to inadequate health care facilities. Unemployment is increasing as the economy gets worse. Industries have closed down due to unabated high cost of production as a result of unreliable power supply
As we celebrate years of independence, think of when we shall get out of this shameful situation wickedly imposed on us by selfish leaders over the years, what is the way forward?
We should use this moment to reflect soberly on achieving the true Nigeria dream, both the leaders and lead must reflect soberly on the state of the nation,; we can’t continue to be led by visionless leaders, who neither have the mental capacity nor patriotic desire to move the country forward.
At this moment Nigerians must wake up from their slumber to reality. 2011 is a year Nigerians must decide on true leadership. It is a year Nigerians must vote and ensure that their votes are not counted for the wrong candidates. It is a year to tell the wicked, self imposed leaders to go into political oblivion; it is a year to rescue our country from the visionless and corrupt leaders while they bow out shamefully.
for a Nation like Nigeria to be great again it will start from somewhere mostly important which is credible, transparence and elective election, when their is a free, fair election, we must all we lay our hands on the plough afresh towards building a nation we can all be proud of in OUR GENERATION!
Wednesday, September 22, 2010
CHEERING NEWS FROM THE MANUTACTURING SECTOR
CHEERING NEWS FROM THE MANUTACTURING SECTOR
When President Goodluck Jonathan assumed office some months ago, he inherited
a deplorable industrial sector especially, the deteriorating state of infrastructural facilities which had crippled economic activities in the sector. LEADERSHIP Industry Correspondent AYODELE SAMUEL writes on efforts of government to reposition and to repair the damage caused by many years of neglect with consequent toll on the economy.
No doubt the first two decades following Nigeria ’s independence in 1960 remains the glorious period in the nation’s history. During this period, several sectors of
the economy experienced unequalled vibrancy. The period contributed
significantly to the nation’s Gross Domestic Products (GDP). The manufacturing
sector played a significant role in stabilizing the engine of the nation’s
economic development in terms of employment, export and agriculture which serves
as source of foreign exchange earnings. Between1970 to1980 according to
statistics, the manufacturing sector alone contributed between 11 - 9.9 percent
to the nation’s GDP respectively.
Recent figure released by the Manufacturers Association of Nigeria (MAN) has
shown that the manufacturing sector contributes only four percent of the
nation’s GDP while Industrial Capacity Utilization has dropped to about 28
percent.
Currently, many local industries have continued to operate under very
severe economic and environmental conditions such as poor energy, poor
infrastructure facilities including bad road network, lack of access to funds and
high interest rates on bank loans while those that cannot endure the economic
hardship close shops. Professor Eric Chiedum Eboh, a Policy Economist and a business researcher said for Nigeria to achieve its economic targets and development objectives it requires the right business environment to nurture a competitive and dynamic private sector.
These indices have been a headache to manufactures and government itself. This
was what led to the convergence of the meeting between government and
stakeholders to find lasting solution to the problems facing the nation’s
industrial sector. It is on record that government through the Ministry of
Commerce and Industry has been tackling these problems on many fronts by
bringing both private and public sectors together to discuss the way forward in
the commerce and industry sector.
In May this year, the Ministry had met with NACCIMA, Manufacturers Association of Nigeria MAN, and other stakeholders in the sector to fashion out possible solution to the problems facing the sector. Also, the problems of the nation’s industrial sector was on the front burner at the meeting of the National Council of Commerce and Industry, the highest policy decision making body in the sector which held in Kano from May 17-21, 2010. This led to the formation of a committee to develop a 10 year National Strategic
Industrial Development Master Plan (NSIDMP) to provide the roadmap for industrial development in Nigeria . This committee is headed by the Minister of State for Commerce and Industry, Ms. Josephine Tapgun while the Akwa Ibom State Commissioner for Commerce and Industry, Dr. Emem Wills Wilcox is the alternate Chairman.
During this interaction with the Manufacturers Association of Nigeria (MAN)
Senator Jubril Martins-Kuye pointed out that the purpose of the meeting with the
Organized Private Sector was to harvest their views on the challenges facing the
sector as well as to find possible ways to alleviate the problems. According to
him “I know where the shoe pinches and I know that the mandate of this ministry
is to remove all obstacles, stumbling blocks and barriers in the pursuit of
Commerce and Industry and our tasks here is to support you.”
He pointed out that most of the challenges that were facing the sector did not
reside with his ministry; therefore the ministry has to interface with other
ministries and agencies of government such as the Ministries of Finance,
Petroleum, Power and the Nigeria customs Services and CBN to tackle the
problems.
These interface with other ministries and agencies have started yielding
results. The N500 billion revival funds for the industrial sector which led to
the disbursement of N150 billion to the real sector was initiated by the
ministry in 2009 and the present Minister followed it up for it to
come on stream.
On the assurance the Ministry gave to manufacturers on special prices for Low
Pure Fuel Oil (LPFO) which was one of the concerns raised at the meeting with
the Minister, the Ministry of Petroleum has facilitated unfettered access to
LPFO by manufacturers.
Action has been stepped up on the 100 billion bailout funds for the textile
industry, through the Bank of Industry (BOI), to enable more moribund textile
companies to access the loans on one digit rate interest through the arrangement
work out by BOI.
With efforts to tackle the illegal check-points that dot the Seme border route and various
ports which have been the entry points for illegal imports into the country, a 21 – man Task Force on Trade Facilitation in Nigeria headed by the ministry’s Ag. Director Trade Mr. David Adejuwon has been set up, comprising members from Ministries of Commerce and Industry, Transport and Finance, Nigeria Customs Service, Nigerian Shippers Council (NSC), Nigerian Ports Authority (NPA), National Agency for Food and Drug Administration and Control (NAFDAC), Standard Organization of Nigeria (SON), Nigeria Quarantine Service (NOS) Nigeria Police, CBN and National Association of Clearing and Forwarding among others. The Taskforce was on an assessment tour of infrastructure needs at the border posts recently to harmonize various activities of the agencies at the posts. This is to ensure compliance with multilateral and regional decisions on trade facilitation. In the course of their assignment, it was discovered that out of the over 30 government agencies currently operating at the borders and ports, only few are legal.
The National Sugar Development Council in collaboration with the Ministry has
flagged off the delivery of input loans and credits to members of 40 out-growers
Association in conjunction with Bank PHB, the Central Bank of Nigeria and
National Agricultural Insurance Corporation of Nigeria (NAIC). Also the Ministry
has provided new guidelines for companies granted approval to import unfortified
raw Sugar for Industrial use on packaging and labeling of their products as well
as to ensure at least 70% local contents in National Sugar consumption by 2015.
The council recently developed up a National Sugar Master Plan that will foster
new investment and help existing investment in the sector to consolidate.
Also, the Ministry through the Bank of Industry (BOI) has approved N58 Billion
for 675 small enterprises to guarantee the utilization of raw materials,
especially agricultural produce, generate employment, increase export potentials,
promote MSMs by women as well as deepen bank’s credit delivery process through
lending to cooperative groups under collective guaranteed arrangement.
In a bid to sustain continuity of policy and programme of the Ministry the
Minister has given his support for the Campaign for Patronage of Made in Nigeria
Products.
The Ministry is also collaborating with Common Fund for Commodity (CFC) on the
provision of prototype cassava processing plant. Another Cassava Processing
Factory was commissioned by the Permanent Secretary, Dr. Abubakar Mohammad at
Angwa Nungu Village of Lafia, Nasarawa State in July 2010 adding to the two
prototypes already commissioned in Masaka and Kuje both in Federal Capital
Territory and Nasarawa State respectively.
Also, CFC granted Nigeria Palm oil project an estimated $4,611,040
meant to improve the income generating potential of oil palm in West and Central
African region ( Nigeria and Cameroon ). The project was meant to benefit
small-scale palm oil processors operating inefficiently, with limited market
access or ability to effectively participate in palm oil domestic and national
supply chains. The project will improve on existing technologies and provide
skills training (technical) for operators and business skills for management
staff.
The Ministry has shown the zeal to promote development of industrialization by
sustenance of Government Backward Integration policy on cement through
cancellation of all un-utilized cement import licenses issued from 2002 - 2008.
This measure was reached in collaboration with stakeholders in the cement
sub-sector after it was confirmed that there was substantial increment in the
capacity of local manufacturers of cement in Nigeria .
This measure is primarily aimed at accelerating the growth of local capacities
as well as providing possibilities for eventual export of cement products to
other African states and beyond.
In view of the above, and to achieve the much desired self-sufficiency in local
manufacturing of cement, create employment and value addition,government has
issued new cement import licenses to investors that have committed resources to
local production of cement. The new import licenses cover the period of 1st
July to 31st December 2010.
It is imperative to note that government granted license to existing and new
entrants into cement in 2008 in a bid to bridge the shortfall and ensure a
decline in the price of the commodity in Nigeria . The new entrants were BUA
Group, Madewell, Reagan Reinassance, Minaj, Lababidi and NICA. They were
granted license to import 500,000 tonnes of cement each with option of bulk,
jumbo or 50kg bag cement. BUA Group used its allocation on bulk cement while
others like Madewell and Minaj did 50,000 tonnes each, Reagan did 20,000 while
Lababidi and NICA did not utilize their allocation. This non-utilization and under utilization by new entrants added to the problem of shortfall in cement
supply in the country.
Local production of cement in 2009 stood at 8.5 million while the shortfall was
8million tones which government bridged with import. With new investment and
expansion of lines by cement manufacturers, local capacity projection for 2010
is 11 million tones while the remaining balance will be imported by those who
have shown commitment in local production.
Government has tried to encourage genuine local investors in the cement
sub-sector by granting them license to import bulk cement for bagging at their
facilities but no group or individual under the guise of operator should hold government responsible for their failure to grasp the rare opportunities provided to them by government to participate in the sector.
However, public commentators have been analyzing the significance of this government action in boasting local production of cement.
MAN Director-General, Mr. Jide Mike described the move to re-introduce the Cement Backward Integration policy as a positive one that would enhance local capacity production and eventually significantly reduce the price of cement in the country.
By the move, he said the federal government has displayed its commitment to the survival of the real sector of the economy, which has almost been extinguished by faulty policies and the harsh environment of the past years.
Commending the government on the backward integration policy, which became effective in 2002 and has significantly boosted the local manufacturing capacity, he said the era of overtly relying on imported cement is over as local production now exceeds the imported cement.
Chairman of the Cement Manufacturers Association of Nigeria CMAN Engineer Joseph Makoju while commending the action the government explained that that by the end of 2011, Lafarge Cement WAPCO will have rolled out its new plant at Lakatabu Ogun State; Dangote Group would have commissioned the Ibeshe plant and doubled capacity at the Obajana factory and Benue Cement Company, all of which will increase the local production of cement above 20million metric tonnes per annum.
Makoju also stressed that the rising output from the various local cement companies had already begun to result in the crash of the price of cement from over N2000 per 50 kg bag to about N1500 per 50kg bag.
He said with the promises made by the federal government to revamp the nation’s power sector, finance the manufacturing sector and boost infrastructure already taking shape, the price of locally produced cement was on its way to around N1000 per bag or even less.
Makoju assured Nigerians of a drastic crash in the price of cement, as the nation moves towards full self sufficiency in the area of cement production next year.


Thursday, September 9, 2010
2011 and Nigeria youth
2011 and Nigeria youth
Ayodele Samuel
The failure of different government to conduct free, fair, peaceful and credible election has made it difficult for Nigerians to rely on President Jonathan’s words to deliver credible polls comes 2011 election, the need for Nigerians, especially youths to register, select right candidates, vote and protect their votes just remains the best option to protect our future.
If the youths teams up rightly, I would be right to say Nigeria youths would determine the next set of leaders we would have, but the fear remain making a right choice.
The youths consist of a large number of voters in every elections, now the youth would also play a major role in the conduct of the poll if, Jega’s decision to use youth corps members remains.
If during 1993 election, I was under age, I knew not the role of the youth in making that election free and fair, but 2003 and 2007 the youth was badly used in the process, many of our friends ended up as a 2000 per day political thugs, few stanched ballot boxes but we all suffer the consequence of bad governance and misrepresentation those administration gave back as dividend, now its 2011 we are saddled to make the right choice.
The 2003 and 2007 produced administration was a disaster to the youth, the rate of unemployment over increased , ASUU strike closed down our universities for months, we couldn’t compete internationally because we were half baked, the government seems never to yields any of our plights . It is time for youths to stop sacrificing their future for mere food. Avoid being used as political thugs by dubious politicians who have their children schooling in western parts of the world
The politicians due to unemployment they have created has turned many Nigerian youths to immeasurable weapons for election looting, political campaign violence, election rigging and other electoral frauds that turn Nigerian politics to do or die affair.
It is time for us to stand for what is right even if we’re standing alone. We are no longer leaders of the tomorrow we knew not, the tomorrow our politicians have destroy but today’s leaders and tomorrow shapers of a future and a great country
The role of youths in nation building and credible elections include active participations in a lawful manner in decision making especially when it comes to determining who rules the nation realizing the fact that, youths are the future of every country.
The future of the youths can only be secured when true and patriotic Nigerians are installed into government with the help of the teaming youth through free and fair election not selection as we have it in the Nigerian politics. We youth must rise to defend democracy in this election, the will of the people must not be not subverted by these criminal politicians who have spent their valuable life span looting this nation, we will bear the consequence of their deeds if we don’t stop them now.

Sunday, August 22, 2010
This celebrity Presidential hopefull: Bashorun Dele Momodu

An encounter with Reverend Chris Okotie
Saturday, July 17, 2010
IBB is not Relevant- Tunde Bakare

Saturday, February 13, 2010
Made In NIGERIA >>>> what policy
The Made In Nigeria policy by the federal government in the lingering problems of smuggling and products counterfeiting, poor infrastructure and rising price of industrial inputs, especially Automotive Gas Oil (AGO) and Low Pour Fuel Oil (LPFO), among others may not deliver Results, LEADERSHIP Ayodele Samuel take a look at some issues facing the manufacturing industry .
Recently the Federal Government through the ministry of Commerce and Industry flag off what should be call aggressive campaign for the use of made in Nigeria products by the citizen.
As at today noting is made in Nigeria , when most industry has been force to close down by unending failure of the power sector.
Power as the soul boaster of any economy has run many industry to close coy, early this year Manufacturers Association of Nigeria (MAN) president, Alhaji Bashir Borodo lamented that about 820 manufacturing firm have close down.
The sector wish has been blame by local industries has leave the country not to have a “made” for the past few years .manufacturers complain of high cost of investment in self generating energy are letter left out with gas shortage beaming them backward in production.
"Despite the potentials of the manufacturing sector as the engine of growth, an antidote of unemployment, a creator of wealth and the threshold for sustainable development, it has suffered severe decline in its contribution to national output. The performance of the sector fell from nearly 13 per cent in the early 1980s to about 4.13 per cent in 2008".
MAN said: "it is a matter of concern that between 2000 and 2008 about 820 manufacturing companies have closed down or temporarily suspended production.
Indeed, over 600,000 Nigerians are said to have lost their jobs owing to this pitiable plight of the industrial sector, with attendant socio-economic implications.
Ordinarily therefore what was expected from government are "desperate measures to tackle a desperate situation, there are no indications of government sensitivity to the negative manifestations in the industrial sector.
Also from the period of deregulation to date, industrial consumers have witnessed three price hikes, especially in Automotive Gas Oil (AGO) and Low Pour Fuel Oil (LPFO).
"This was foreseen by us and about 18 months ago we made passionate pleas for the reduction in the price of AGO, and permission to partner with NNPC to import LPFO directly. Promise was given that evaporated promises.
MAN had protested these shocking price increases and drew the attention of the government to the imminent dangers of the collapse of industries which depends on AGO and LPFO to power their generators or boilers.
MAN reacting to banks' lending profile from 2003 to 2009 obtained from the Central Bank of Nigeria (CBN), which indicated that the manufacturing sector received N3.9 trillion during the seven-year period as loans.
Comparatively, Communications got N4.974 trillion while Oil and Gas received N6.943 trillion, according to the CBN.
"Even the figure given by the CBN as loan to the manufacturing sector was lumped with imports and other things which would really bring down the figure that could be categorized as direct loan to manufacturers", MAN said.
"The banks are giving us a pittance. Yet, the CBN claimed that we receive more loans than our contribution to Gross Domestic Product. The truth is, banks consider us as a risk. And the reason is not far-fetched. They can see the poor infrastructure, which hinders our operation. However, our big brothers in the manufacturing sector still get adequate funding from the banks, partly because of their history".
Unfortunately, Borodo stated that the Bank of Industry (BoI) which should provide ready support to the industrial sector was not able to do so because of poor capitalisation.
According to Borodo: "BOI was promised N50 billion as capitalisation. But, all we were told they received is just N5 billion".
Also, the Chairman of MAN's Economic Committee, Mr Clement Olowokande, said the manufacturing sector was not getting enough funding support from banks.
Olowokande, who is also the Chairman of Berger Paints Plc, remarked: "We asked the former CBN Governor to give us a breakdown of the manufacturers who got the allocation, which was not provided. And we also said to them that funding assistance to the manufacturing sector should not be based on its contribution to the GDP as is being stressed by the CBN but on need. The sector should be given what is desirable, what is required to survive rather than being based on a given percentage. Secondly, you need to know the amount of local products we are producing in this country. We need funding assistance to satisfy local needs. If not, people will resort to importation and still pay FOREX, to the nation's detriment.
The textile industry had also suffer similar lose, before 1997, the Nigerian textile industry was the second largest in Africa after Egypt with over 250 vibrant factories and running above 50 per cent capacity utilization.
As at today about 60 out of existing 100 textile firms is shut, Record have it that, International Textile Industry (ITI) closed down its Isolo and Ikorodu factories both in Lagos, with about 800 people out of job, First Spinner Limited, Ikorodu, Lagos, closed down with about 500, Bhojr Textile Industry closed down with about 700 people out of job, Reliance Textile Ikeja, Lagos, closed down with about 500 people out of job. Fahibdayekh and Company Limited in Kano , closed down with more people sent to the labour market; Atlantic Textile Mill in Lagos was finally closed down in 2008 with about 800 people out of job after a partial closure in 2007.
In 2007, job loss in the sector was about 10,000 when the largest textile company in the country, the United Textile Mill in Kaduna State closed down with about 5,000 people sent to labour market. Atlantic Textile Mill in Lagos also partially closed down
It should be noted that the local textile market has a share of about 20 per cent of Nigerian textile products with the balance of 80 per cent being controlled by assorted imported fabrics.
Smugglers move in and out of the country with goods (only comes in with good and leave with cash) these whish pose a great treat to FG made in Nigeria Campaign
Custom effort to eradicate smuggling activities which have eaten deep into the economy and also cripple local industries has not been felt, as the market is over taken by smuggled goods.
Nigeria imports everything including labour since the university produce half bakes graduates yet the government embarks on Made in Nigeria Policy.
The British High commission said there is noting to export from Nigeria apart from crude oil, yet the government dreams of becoming one of the world economic countries in 2020.
Nigeria likes other developing countries like China, Brazil, India export en-mass to enrich there economy while the green land spend about 3 billion Us dollars annually on foods importation.
Agricultural products which our economy was based on in time past has been neglected, coco, timber, groundnut, palm Oil are no longer exported.
The level of decay in infrastructure will jeopardize the proposed made in Nigeria policy. With the poor infrastructure, local manufacturers have the problem of competitiveness.
Our product can not compete with international standard due it standard, Nigeria producers dish out best of sub standard to the teaming Nigeria buyers whom patriotic zeal to purchase made in Nigeria detorate their health or send them to early grave. Last week over 40 people were diagnosed of Gastro-enteritis after they were reportedly hit with severe stomach pains from consuming contaminated groundnut oil produce by a local company in Kano
But with all this challenges face the manufacturing sector of the country, Minister of Commerce and Industry , Chief Achike Udenwa maintained that Nigeria products are of high quality compared to products from other countries, He called on citizen’s to imbibe the virtues of consumer patriotism to Nigeria made product like the developed nations have done in order to have a strong industrial base.


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