SON rides on standardisation to attract N20bn into cable industry

Determined to leverage its standardisation policy to grow investments across industries, the Standards Organisation of Nigeria (SON) has attracted about N20 billion worth of investment into the cable and wire industry to help actualise the country’s dream of diversifying the economy.

The standardisation policy, which centres on continual improvement and implementation of specifications for products, has seen the regulatory body successfully reshaping the ceramics, cement, steel and iron industry in recent times.

The new N20 billion investment is spearheaded by Coleman Technical Industries, which has pumped N10 billion into the industry, as well as others that have also invested N10 billion into the sub-sector.

Speaking at a facility tour of Coleman’s new factory in Sagamu, Joseph Odumodu, director-general, SON, affirmed that the regulatory body had resolved to ride on the standardisation policy to effect the desired change in business environment for operators in the cable industry.

Odumodu, who commended the firm for its success so far, despite the daunting challenges, said the Federal Government was also advancing plans to develop a new national policy for infrastructure to help firms such as Coleman further to spread their footprints to every nooks and crannies of the country and beyond.

“We are working on a new national policy to build infrastructures that will help indigenous firms spread made-in-Nigeria goods throughout the world,” he said.

The director-general further revealed that other efforts aimed at helping swell indigenous investor confidence in the market included the local patronage bill currently at National Assembly, which he believed, once passed into law, would help give indigenous firms the desired support to dominate the market.

On efforts to encourage local manufacturers in the cable industry by comprehensively sanitising the industry, the SON boss noted that the demand-supply balance in the cable market had continued to create a loophole for counterfeits in the market, but was optimistic that in the near future the market would be sanitised for indigenous manufacturers committed to growing the industry.

“Counterfeiting is a critical issue in the cable market because of high demand for cables in Nigeria,” Odumodu said, saying “currently the supply is yet to meet the demand. However, once we can effectively meet the demand, then it becomes easier for us to replicate what we have achieved in cement and iron industries.”

The first phase of the new Coleman’s production plant in Sagamu is due for completion by year end. This is expected to further strengthen the company’s position as Nigeria’s dominant producer of cables, even as the firm says it is already eyeing other regional markets to export its products. The firm has a two-phase $70 million MV project currently under construction. The first phase will produce 24,000 metric tons of copper and 12,000 metric tons of aluminium per annum.

George Onafowokan, CEO, Coleman Technical Industries Limited, revealed that the brand was already considering stamping its market footprints on other regional markets, having established itself as a dominant player in the Nigeria’s cable market, adding that its new products would continue to remain compliant with standardisation rules of the SON.

According to him, Coleman recognised a vacuum in Nigeria’s cable industry with the absence of locally produced medium voltage cables years ago and has since leveraged it to even veer into customised cables and several kinds of cables it currently offers the market.

ODINAKA MBONU