Stakeholders intensify efforts to ramp up local input content
Stakeholders in the Nigerian industrial sector have intensified efforts to increase local raw materials sourcing, otherwise called local input content. This follows from its appreciable increase in the second half of 2013 (H2 2013) to 58.58 percent, from 50.93 percent reported in the first half of the year (H1 2013).
Between October 28 and 30, this year, the Raw Materials Research and Development Council (RMRDC) will host manufacturers and intermediate firms with a view to finding a lasting solution to perennial cases of raw materials insufficiency, poor raw materials quality and inability to source raw materials due to inadequate skills.
The project is called the Nigerian Raw Materials Exposition 2014 (NIRAM) and will have as its theme, ‘Achieving Nigerian Industrial Revolution Plan through Raw Materials Sourcing.’ It will be held at De Blue Roof, Lagos Television Event Centre, Ikeja, Lagos.
The essence of the event is to create a conducive platform for synergy among producers and users of raw materials as well as those involved in the value chain to enable them share experiences, showcase available solid mineral and agro-allied raw materials, while enhancing value creation and improving the manufacturing sector.
Participation is expected to cut across small and medium-scale enterprises (SMEs) as well as large corporations and multinationals. The key organiser is RMRDC, while the Bank of Industry (BoI), Nigerian Export-Import (NEXIM) Bank, Bank of Agriculture (BoA) and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are partners.
Moyo Jolaoso, representative of Hussaini Doko Ibrahim, director-general/CEO, RMRDC, said the event had become necessary given the enormous role played by raw materials in the country’s development, adding that six other NIRAMs would be held in other parts of the country.
However, the RMRDC boss had earlier stated that in spite of huge availability of gypsum, the industrial sector was yet to take full advantage of the economic potentials of gypsum value addition and creation of industrial sector linkages.
But manufacturers point out that in many situations locally available raw materials do not meet expected standards while a number of them require state intervention for development. This situation, therefore, pushes them into imports.
“We still need to develop the gypsum industry here,’’ said Joe Hudson, CEO, Lafarge WAPCO.
“It is not available in large quantities to be used commercially. Our businesses use local gypsum but we need to develop local raw materials because it makes production cheaper,’’ he said further.
Experts say infrastructure must be developed while specialised institutions should be established to bridge the gap.
“We have a problem with the skills in Nigeria,’’ said Patrick Eguakhide Oaikhinan, professor of ceramics engineering/CEO, Epina Technologies Limited, who is organising a ceramics trade fair in Lagos this month.
MAN’s July to December 2013 Economic Review shows local content in the food, beverage and tobacco sub-sector rose to 79.34 percent by H2 2013, from 68.99 percent reported in H1 2013, while that of the textile, apparel and footwear makers reached 60.79 percent as against 52.86 percent reported in H1 2013.
ODINAKA ANUDU