‘Food industry in Nigeria is very attractive to Japanese companies’

Taku Miyazaki is the trade commissioner and managing director of Japan External Trade Organisation (JETRO). JETRO, which is already 60 years in Nigeria and has offices in 80 countries, brought together Japanese companies for the just concluded Lagos International Trade Fair. In this interview with ODINAKA ANUDU, the trade commissioner reveals that Japanese companies are making waves in Nigeria’s manufacturing sector and believes that the fast-moving consumer goods (FMCG) industry in Nigeria, especially the foods segment, holds great promise to Japan. Excerpt:  

At the just concluded Lagos International Trade Fair, your pavilion walked off with two awards. What can you say is the significance of these awards?

We won the ‘Overall Best Pavilion’ and the ‘Best Foreign Pavilion’. We made a huge effort to organise such a big pavilion, having over 30 Japanese companies in there. We also made a huge effort in decorating the pavilion and in promoting the products of these companies. It was these efforts from all of us that gave us the awards.

Is this year’s fair an improvement from last year’s, in terms of traffic in your pavilion?

Last year’s fair was successful. This year, the number of visitors was 30 percent higher, which is good for us. The number of visitors increased and most of these visitors were happy. Also, there were positive responses within the pavilion. We got Japanese companies from Japan, Dubai and South Africa and from companies that wanted to tap into the Nigerian market. Many are now confident to go into the Nigerian market.

Tell us what Japanese companies are doing in Nigeria.

CFAO Yamaha Motor Nigeria Limited just started assembling motorcycles in Lagos late last month. Honda started manufacturing Accord Passenger Vehicle this July. Since last year, Nissan along with its partner Stallion Group has been assembling. Mitsubishi has announced plans to start car assembly in Nigeria in April. In addition to these, Yamaha came back to Nigeria. Also, during the trade fair, Isuzu Motors and its distributor Koncept Autocentre officially announced plans to start assembling trucks in the second quarter of 2016.

Are Japanese companies also looking at sectors other than automotive?

Ajinomoto Corporation has been in Nigeria since 1990s. The instant noodle maker Sanyo Foods made a joint venture with Olam International and has set up a factory in Apapa, Lagos.  Food industry in Nigeria is very attractive to Japanese companies.  In addition Yokogawa, a Japanese company, has a strong presence in the controlling system in the oil & gas sector, and it has an engineering service centre in Nigeria. We also have a Japanese company active in the security industry. The fast-moving consumer goods (FMCG) industry in Nigeria is very lucrative.  A Japanese chemical firm is very active in Nigeria.

Given that many Japanese companies are in the automotive industry in Nigeria, how will you assess the present Automotive Policy of the federal government?

The efforts made by the federal government to develop the manufacturing sector, especially the automotive industry, and to diversify the economy are commendable. I totally think that that the effort is very much welcome because it is critical to diversify the Nigerian economy. Japan wants to cooperate with the Nigerian government. We also think it is important to develop the automotive industry. I believe the policy should be developed so that it can support the local automotive industry. It is important to reduce the production cost locally so that auto manufacturers can continue to come to this market.

I know Japanese companies in Nigeria must be experiencing some challenges. What are they?

The biggest challenge is the foreign currency. I understand it is not limited to Japanese companies. I also understand government is making huge efforts to reduce its effects.  Also for the manufacturer in Nigeria, infrastructure and power are issues. It is better to provide electricity and make the environment much friendlier for investors.

So how can Japanese companies help Nigeria in the area of infrastructure?

Japan has experience overseas to support the development of infrastructure. We develop facilities such as transport system, power, water and others. In these areas we have huge technology. The Japan International Corporation is also there to assist.  We have the expertise in making the master plan and also in building high-end infrastructure.

There is often this complaint that Japanese products are expensive. Is this true?

The quality and labelling of Japanese products are superb. The products are also convenient for consumers. This is not often true when you think of the life-time cost.

It has been found that some unscrupulous individuals produce goods at the backyard and brand them ‘made in Japan’. How do Japanese companies check counterfeiting?

Japan is very active in combating counterfeiting of products all over the world. We work with foreign governments to eliminate counterfeiting and provide information to Japanese companies. The information and awareness are important to protect the consumer. I understand that the government is very active in consumer protection here and we are ready to cooperate with them. Also, Japanese companies develop devices with which to recognise genuine and counterfeit products.

Nigeria’s export to Japan in 2014 was $4.5 billion, while Japan’s import into Nigeria within the year was valued at $728m? How do we improve bilateral trade relations between the two countries?

It is important to encourage import and export. I expect the leadership of the new government to encourage trade and industry.  We expect the new government to tackle lack of foreign exchange, improve logistics, Customs clearance and facilities. Nigeria has a huge potential despite challenges.