Manufacturers protest low patronage of local metals, aluminium
Producers of primary and secondary aluminium products, cold rolled coils, enamel wares, galvanised iron and steel, nails and wires as well as steel pipes have expressed disappointment over lack of government patronage of their products, stressing that this is further encouraging influx of substandard products into the country.
Nigeria’s government is seen as the biggest spender. Its departments, agencies and parastatals often embark on projects that require the use of metals and aluminium products. However, they prefer to import these products rather than patronise local manufacturers.
“The sector has emphasised the need for government to patronise made-in-Nigeria products as a way of curbing the obvious challenge of influx of sub-standard imported products and to encourage local manufacturers,” said Basic Metal, Iron and Steel and Fabricated Metal Products Group of the Manufacturers Association of Nigeria, in its sectoral report, released after an annual general meeting held last Thursday in Lagos.
“This request has not been actualised by government as it has been observed that majority of the sub-sectors are yet to be patronised by the government,” said the group, adding that the non-patronage is against the spirit of the resolutions earlier reached with the government.
The group argued that government should show the way by patronising locally made products before urging Nigerian consumers to do so.
Also, a sub-sector of the group, made up of enamel ware makers, has agreed that duty on finished products imported into the country should be reviewed upwards from 20 percent to 35 percent, in addition to 35 percent levy to encourage local production.
The sub-group further agreed that there is the need for government to review the Free Trade Zone (FTZ) Act to ensure that all companies operating in the FTZ pay all duties and levies sine they all operate in the local market.
Similarly, another sub-group known as the Galvanised Iron and Steel Sub-Sector said the major challenge in the industry is high cost of exchange rate and continued importation of sub-standard products into the Nigerian market, while calling on the government to have a clear-cut guideline on duty increase to encourage level-playing ground.
“The 35 percent duty rate on raw materials is affecting the sub-sector and encouraging smuggling,” said the sub-group.
The AGM afforded the enlarged Basic Metal, Iron and Steel and Fabricated Metal Products Group the opportunity to elect new leaders and chart a new course for the sector.
Oluyinka Kufile, chairman/CEO, Qualitek Industries Limited, emerged as the newly elected chairman of the group, while R.P Singh of African Foundries became the first vice-chairman.
In his acceptance speech, Kufile promised to fight for the interest of sector in general, urging companies in different sub-groups to consider the interest of others while striving to make profits.
“Any nation that is unable to develop the steel sector cannot get anywhere,” Kufile said.
“If we want to create huge jobs in Nigeria, then we should develop this sector. There are many other industries that depend on this sector, so I believe it is in our collective interest to see this sector move forward,” he stressed.
“I believe we are the ones to inform the government on what to do and policies to put in place. So we will present our position to the new government to ensure that we move Nigeria forward,” he added.
Rafic Hariz of Nigerian Gas and Steel Limited, outgone chairman, said the issue of cold rolled steel and wire rods almost tore the enlarged group apart. Hariz thanked members for holding their heads high despite the difficulties and controversies in the sector.
ODINAKA ANUDU