Petroleum to contribute $108bn to Nigeria’s GDP — McKinsey report
on July 29, 2014
BY SEBASTINE OBASI
Despite the challenges of insecurity, Nigeria’s ongoing struggle with poverty and withheld investments by the international oil companies, IOCs, the oil and gas sector has the potential to contribute about $108 billion yearly by 2030, up from $73 billion in 2013, a McKinsey Report has stated.
The report, which was released recently stated that while the oil and gas sector is expected to grow by 2.3 percent annually, its success is still vital to the Nigerian economy.
According to the report, “with the right reforms, oil production could increase from 2.35 million barrels a day on average to a new high of 3.13 million barrels a day by 2030, contributing $22 billion to gross domestic product, GDP by 2030. Natural gas output could grow by as much as six percent per year, adding $13 billion to GDP by 2030.
“In total, the oil and gas sector has the potential to contribute $108 billion per year by 2030, up from $73 billion in 2013. However, this assumes that the sector is successful in dealing with current obstacles such as security and can attract fresh investment.”
The report also said that Nigeria has the potential to expand its economy by about 7.1 percent annually through 2030, raising GDP to more than $1.6 trillion. This could make Nigeria a top 20 global economy with higher GDP than the Netherlands, Thailand, or Malaysia in 2030.
What’s more, it added that a large consuming class is developing in Nigeria, with potentially as many as 160 million members by 2030, more than the current populations of France and Germany combined. This upside scenario is based on a bottom-up analysis of the potential for major sectors of the Nigerian economy, such as trade, agriculture, infrastructure and manufacturing.
According to McKinsey, based on an expanding consumer class in Nigeria, it is projected that consumption could more than triple, rising from current $388 billion/year to $1.4 trillion/year in 2030, an annual increase of about eight percent.
This would make trade the largest sector of the economy, and provides a particularly good opportunity for makers of packaged foods and fast-moving consumer items such as juices, which could grow by more than 10 percent yearly.
As regards agriculture, it stated that improvements on several fronts can help raise both the volume and value of Nigerian agricultural production in the next 15 years. The sector, which is now the largest at 22 percent of GDP, could more than double from $112 billion/year in 2013 to $263 billion by 2030.
It however said that this would require raising yields through greater use of fertiliser, seeds, and mechanised implements; shifting the crop mix to more valuable crops; increasing the amount of land under cultivation; reducing post-harvest losses; and raising more livestock and increasing the output of forestry and fisheries.
For infrastructure, the report stated that on the average, the value of a nation’s core infrastructure – roads, railways, ports, airports, the electrical system is about 70 percent of GDP. Whereas in Nigeria, core infrastructure is estimated to be about 35 – 40 percent of GDP.
It has one-seventh the roads per kilometer as India. On a per capita basis, Nigeria has one-third the residential buildings of Indonesia and one-sixth of the commercial space. Between core infrastructure and real estate, total infrastructure investments in Nigeria could reach $1.5 trillion between 2014 and 2030. This would not only make infrastructure building a major contributor to GDP, but also an enabler of growth across the economy.
Also, it reported that manufacturing in Nigeria remains at a relatively early stage of development, contributing $35 billion, or about seven percent of GDP, in 2013. It has, however, achieved strong growth recently, with output rising by 13 percent per year from 2010 to 2013.
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Nigeria, Africa's Growing Economic Powerhouse
BY GODLOVE BAINKONG, 6 MARCH 2014
Reports say Nigeria's economy is expected to grow strongly in 2014, with expansion continuing to be driven by high oil prices and robust domestic demand. This is likely to see the Africa's top oil-producing nation dethrone South Africa and become the continent's largest economy in terms of its GDP size. According to projections by economists, the rebasing may see Nigeria's GDP increase to between $384bn (about FCF 183.605 trillion) and $424bn (about FCFA 202.737 trillion), making it Africa's new economic powerhouse.
The International Monetary Fund (IMF) projects a 7.4% GDP growth rate for the country this 2014, up from an estimated 6.2% in 2013, despite the instability in the north of the country and oil theft, which act as a drag on the broader economy. Nigeria's economy has been reportedly advancing by an average of 7% a year, compared with South Africa's meagre 3% average. This is probably as a result of its existing fairly strong investment proposition, based on its large population (170 million people), substantial natural resources and strategic position. While foreign investment has in absolute terms long been focused on the oil sector, portfolios are becoming increasingly diversified, moving towards power, agriculture and mining, areas of the economy that have demonstrated a comparative advantage in emerging markets vis-à-vis the West. And this is where Nigeria is drawing its strength.
The new-found strength of Nigeria is certainly a wakeup call for Cameroon that has the West African country as its main trade partner in the continent. Most trade between Cameroon and Nigeria takes place along 10 major corridors, both inland and on the coast. Estimates show that Nigeria exports more than 213,000 metric tons of non-oil products to Cameroon. These include cosmetics, household plastics, oranges and other merchandise valued at 769 million USD (about FCFA 367.735 billion) annually. Of these, USD 176 million (about 84.175 billion) is estimated to be products made in Nigeria. Meanwhile, estimates also show that Cameroon exports about 160,000 metric tons of goods annually, with a value of 226 million USD (about FCFA 108.083 billion), of which USD 62 million (about 29,647 billion) comprises products made in Cameroon. Reports say this is more than forty times official estimates given that most of the goods pass through informal ways.
The country's growing economic strength coupled with the development of the Bamenda-Ekok-Enugu road corridor offer Cameroon a ready market for aluminum sheets, bush mango, Gnetum (Eru), bananas, plywood and other products that it has the potentials to produce aplenty. While the need for local processing imposes here, it goes without saying that in the face of this, anything short of optimal production by Cameroon would be synonymous with stifling the local economy.
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Innocent Chukwuma: Most Innovative entrepreneur 2013on January 01, 2014 / in Special Report 8:16 am
By Judith Ufford
Dr. Innocent Chukwuma, Chairman of Innoson Vehicles Manufacturing Co. Ltd, the first indigenous vehicle manufacturing plant in Nigeria was born in 1961 in Umudim, Nnewi, Anambra. He is the last of six children born to Mr. and Mrs. Chukwuma Mojekwu of Uru-Umudim Nnewi, Anambra State. After his education, he started trading in spare parts under the name Innoson Nigeria Ltd in 1981. His company is third after Leventis and Boulos Enterprises in assembling branded motorcycles in the country.
His business has metamorphosed into four manufacturing companies namely: Innoson Nigeria Limited Nnewi, manufacturers of motorcycles, tri-cycles, spare parts and accessories; Innoson Tech. & Industries Co. Ltd Enugu, manufacturers of Household and Industrial Plastics, Health & Safety accessories, Storage containers, Fixtures & Fittings, Electrical components & accessories; Innoson Vehicle Manufacturing (IVM) Nnewi, manufacturers of Capacity City bus, Mini & Midi buses, Pick-Up trucks and Garbage Collecting vehicles; General Tyres & Tubes Co. Ltd Enugu, manufacturers of Tyres and Tubes.
The vehicles in IVM fleet range from cars, trucks, SUVs, compactors, etc . Presently, the company has made in-road into some African countries such as Ghana, Sierra Leone, Chad, Niger, Togo.
As the first indigenous motor manufacturing company in Nigeria, he says he wanted to prove that Nigerians can do it. This he says has been proved. According to him, the inspiration to go into vehicle manufacturing was drawn from a desire to see Nigerians drive new cars. “Nigeria has become a dumping ground for second hand cars. I know it was the high price of new vehicles that made Nigerians resort to patronising old vehicles, but since we decided to manufacture the vehicles here, the price is affordable, and our people can drive new vehicles again,” he told Vanguard in a recent interview.
When the company began, no one gave him a chance. He recalled that not so many believe it will work, but today, ” they can attest to the fact that it’s working. People from other countries are coming to copy what I did to replicate it in their own country”. This story success has ensured employment for about 7,400 Nigerians who work in the company’s factory.
For his efforts, he has been made Deputy Chairman, Board of Trustees, National Coalition for Jonathan/Sambo Presidency, November 2013; The honorary Life Vice President of Nigerian Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA) on November 23, 2013; Ambassador for Peace by St. Andrews Anglican Church, Trans Ekulu, Enugu, April, 2012; Entrepreneur of the Year by Wesley University of Science and Technology, Akure, Ondo State, March 2012.
He is also Most Outstanding Indigenous Entrepreneur in the Manufacturing Sector by Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) in January 2012; National Council Member, Manufacturers Association of Nigeria. Conferred the National Honour of the Officer of the Federal Republic (OFR) on November 2011 by His Excellency, President Goodluck Jonathan; Awarded Doctorate Degree in Business Administration (DBA) by Enugu State University of Science and Technology, Enugu in November 2011 amongst several other awards. Dr. Chukwuma who loves playing tennis is married to Ebele and they are blessed with children.
During an earlier interview with him, he recalls that : “I started as a small business man dealing on spare parts at Nnewi. At that time, people were bringing only second hand motorcycles to Nigeria, and I felt there should be a way to reduce the price of the new ones, so that people will be interested enough to buy new ones, rather than the second hand motorcycles.
“I travelled overseas and found out that there were four companies importing motorcycles into Nigeria. First was Leventis that was bringing the Honda brand, the second company was Yamaco that was bringing Yamaha, the other company was Bolus that was bringing Suzuki and the fourth was CFAO that was bringing moblet.
“These were the companies that were dealing on motorcycle in Nigeria, and my company was the next one. So when I went there, I discovered that when they brought the motorcycles in crate and each crate contained one motorcycle which took a lot of space and you can put about 40 units in one 40ft container. In one container with 40 units of motorcycles in a 40ft container, the motorcycle will become expensive. So after evaluating it, I went to overseas and packed 200 units in one 40ft container and my price came down by 40%. Of course, this was cheaper.”
How was he able to pack 20 units into one container? His response was simply ingenious:
“Because of my experience in spare parts, I knocked it down and brought them here, and arranged mechanics to assemble them, to couple them manually. The first five containers I brought in took me about three months to sell. I went back and brought another ten containers which took me about one month. I went and brought twenty containers and it took one week, and when I brought fifty containers, people were now paying in advance before they landed.
“There was a time I was bringing 200 containers of motorcycles every month and spread them across Nigeria. Because of that idea, my own price was cheaper by 40%, before other people saw what I was doing and followed suit. That is why today, motorcycle price crashed to N60, 000 from a high price of N150, 000 in the past.
“It was in the course of doing this that I discovered that there are a lot of plastics in a motorcycle, and that is one of the reasons I set up a plastic plant to produce the plastics components locally. These are some of the things I did to bring down the cost of motorcycle to about N60,000. Today, nobody thinks of buying second hand motorcycle anymore in Nigeria. Everybody wants to buy new one because new one is cheap, and I am going to do the same thing with motor vehicles.
“In the near future, you find out that all these “Tokunbo” vehicles in Nigeria will not work out as people will prefer the new ones. With the support of Nigerians, we will see that we will be there.
“Today, we are importing engines; we are importing certain components for motor manufacturing, but after sometimes, we will make them here. With the support of Nigerians and the government we will make everything here, then Nigeria will be the first in Africa to manufacture full made in Nigeria vehicles. According to Dr. Chukwuma, the vehicle factory was set up for the entire African continent and not Nigeria alone.
Said he said: “In the near future, I’m sure we will take over the motor business in Africa. This of course is with the support of Nigerians.” To this end, the federal government has directed all MDAs to patronise locally made vehicles and other goods. Inspite of this good intention and directive of the federal government, Dr. Chukwuma observed that “sometimes some ministries would prefer Toyota or other brands that they have used for 50 years. They don’t want to try our made-in-Nigeria brand. But the ministries that have taken the bold step of using our products, are happy they did”.
The Innoson boss would boast beating his chest that the Innoson brand is comparable to any in the world and that spare parts are no problem. “Presently, our manufacturing plant at Nnewi is built to service the entire African continent, and good enough we have been meeting up with market demands. Our strategy is to plan futuristically, knowing that huge orders will come, and as it stands today, we are able to meet up with the huge demands. We have the manpower and modern technology to cope with expected challenges.”
Recently, at the Federal Executive Council meeting, the Minister of Trade and Investment revealed that the multinational Nissan company has written that they want to partner with Innoson in vehicle manufacturing in Nigeria. While Dr. Chukwuma, acknowledged this development, he was not so willing to let the cat out of the bag. According to him, I’m aware that they have made such move, and on our part, we are ready to go into any cooperation that will boost the nation’s economy, and lead to increased productivity and provision of jobs for our youths.
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Nigeria: Experts - Revival of Steel Sector Will Boost Nigerian Economy
By Jaiyeola Andrews, 24 November 2013 Federal government has been urged to as a matter of urgency to revive Ajaokuta Steel Company (ASCO), as its revival will boost the nation's economy and create more jobs in the country. Sergey Semenov, Lev Semenov of ECOWAS-UKRPROM, Ukraine disclosed this when they visited the office of Africa Iron and Steel Association in Abuja weekend.
The experts said the implementation of vision 20:2020,requires increasing steel production in Nigeria to 15 million tons, which is 100 kg per capital. "The economic preferences of BF-BOF process become particularly evident in the large-scale production, proximity of deposits of raw materials and water, and low cost of natural gas and other natural resources. All these preconditions, as well as availability of local workforce and cheap river and rail transport, are present in Ajaokuta. "Therefore, allegations of inevitably high ASCO steel price are groundless. After achievement of the planned production volumes the cost of ASCO will be below the world average" the experts said. The averred that it was impossible to over-esteem the social value of ASCO project for Nigeria, saying after completion of the first stage of the project, 12,000 people will be engaged at the plant. "After completion of the second state-more than 20,000 people will be engaged. Nigerian experts estimated, that up-stream and down-stream industries will create about two million jobs. Other important effects are technological acquisition and training of Nigerian metallurgists both during operation of the plant and at the ASCO Metallurgical Training Centre. "It is obvious that from technical, social and economic points of view it is necessary to reactivate ASCO, and the sooner the better. This will guarantee industrialisation and future flourishing of Nigeria, stability and independence of the country for the nearest future and after the exhaustion of oil reserves" the Ukrainians said.
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Nigerian Leather Is The Best In The World – Danyaro
By: David Aduge-Ani on September 30, 2013 - 4:48am
Alhaji Bashir Danyaro is the chairman, Board of Trustees, Leather and Allied Products Association of Nigeria (LAPAN). In this interview with DAVID ADUGE-ANI, he speaks on challenges facing the leather industry in the country.
What is the purpose of this association?
The association was formed to address many needs in the industry. The leather industry is one of the oldest industries in Nigeria, but sadly it is the most undeveloped industry in Nigeria, simply because of the operators in the business.
At the initial stage, the operators in the business were our grandfathers, and they have a limited scope because of modern education and they were not able to pilot the business and build in such a way that it can flourish even after them and give employment to so many people.
Although it was flourishing, the industry did not develop to the extent that the volume of business that it was generating, and the quantum of work in the industry and the contributions the industry gives to the national economy, especially when it comes to the exportation of leather.
Members are mostly people in the trade, from artisans down to owners of shoe factories, tanneries; people who do business in leather sector - those selling leather, chemicals or anything associated with leather or allied products in Nigeria.
What do you think is responsible for poor number of leather manufacturing industries in the country?
Yes, you have to go back to history. In Nigeria, it was during the colonial era that leather had a rule (governing it), but only in the northern part of the country. In the southern part of the country, there are no rules or edict governing how shoe skin and hides are utilised. People in the south are allowed to eat the skin of animals, but in the north it was an offence at that time and even now, because nobody has repealed that law. There is the Northern Nigeria Hides and Skin Act, which prevented people from eating the skin of an animal. Also, you are not even allowed to slaughter an animal unless you do that in an abattoir, which is the only prescribed place for slaughtering an animal. It is only on two conditions that you are allowed to slaughter animals, which are on religious or ceremonial purposes, but for anything commercial, you have to go to a government designated area where it is going to be under supervision, in the northern parts of the country.
That was why most of the activities of leather are in the northern part of the country and most of it were centred in Kano for the simple reason that Kano was central commercial centre of the north.Moreover, it is the centre of the trade in cow, goat, sheep and hides.
That was why the first tannery in Nigeria was established in Kano by John Holt in 1940’s and then the great northern tannery came up in the 1950’s.
But when it comes to those who use leather to produce leather products, like bags, belts, hats etc., they are scattered all over the country, especially in the southern parts of the country, with Lagos carrying the majority of it. They are also found in Aba, Onitsha and other places.The companies are still growing even though they are not regulated.
What do you think are the achievements of the association since its establishment?
Our achievement, first and foremost, is the formation of the group and moving the group to the national centre, that is, moving the business to the centre of Nigeria. When we started, people were laughing at us, saying that we are just wasting our time. But today, we can raise our heads with pride because God has crowned the little effort we started with and taken us to greater heights.
How do you compare made-in-Nigeria leather with those made in other countries?
Yes, I must tell you that Nigeria leather is one of the best leather in the world. That is why many foreigners come here to buy goats and sheep skin. The simple reason for this is that they have the best leather processing quality in the world. There is nothing like Nigerian leather when it comes to goat and sheep skin. Before now we were exporting the raw skin, but now it is semi-finished. So, what the foreign buyers do is to buy them and do the finishing in their country and turn them into beautiful products, like shoes, handbags or belts and others.
What is the reasons for this high quality of Nigerian skin and hides?
The good quality of our goats and sheep skin is because no goat or sheep skin produced in a cold climate could be as good, resilient and tough as the one produced in the tropical region, because their animal skin over there contains so much grease and fat that they do not produce good leather. Our own has less fat and is thicker because the hair of our goats and sheep skin stay for life, but out there they shave the skin of their goats and sheep hair, which reduces the quality of the skin.
What is quantity of export for Nigerian hides and skin?
The quantity of export is actually very high. According the Central Bank of Nigeria (CBN)figure in the year 2009, the total yearly export of Nigerian leather to other countries of the world was $680 million. In 2010, it rose to about $3 billion, and 2011 it fell down to about $800million.
What effort is being made to attract foreign manufacturers to establish their companies in the country so as to reduce the level of export of this commodity?
That is one of the reasons for establishing this association, because we want our members to have jobs and business in their own countries, since we don’t want to patronise other countries at the expense of our country. This is because the more we do this the more we create more jobs for our people. For instance, we have a population of about 170 million people, but we don’t have up to five shoe making companies that can produce one million pairs of shoes in a year.
Why are foreign shoes manufacturing companies not willing to invest in the country?
It is a deliberate policy for a government to create an enabling environment whereby it will be backed up with policies. For instance, since everybody wants Nigeria leather because of its processing qualities, why can’t our country encourage foreigners to come here and invest in shoe manufacturing industries. This is because by doing that we will get double benefits: we will get training; we will get employment for our own people and, at the same time, our materials will sell, instead of going abroad to buy.
We know that many Nigerians are quality conscious, and that is why they prefer to buy foreign shoes, but if those fine shoes are made in Nigeria, it will definitely reduce the capital flight from the country and reduce the rate of unemployment in the country.
Are you saying that government is responsible for this situation?
Government does not operate in a vacuum. Maybe a group of stakeholders has to articulate ideas and put them in practice and show it to the government and how it can work, then government itself can come together withthose in the business to find out what and what can be done to encourage and grow this business.
But the funniest part of the situation is that people who carry portfolios and go around are the people that the government is consulting. I always say that government is getting the wrong ideas from the wrong people
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FG Mulls Manufacture of Power Product Invented By Nigerian
17 Aug 2013
Prof Chinedu Nebo
By Muhammad Bello
The federal government is exploring possibilities of bankrolling the manufacture of an environmentally friendly airless and energy generating football that can last for one and half years and can be used as electricity power source when not in play.
The product, named Power-Generating Soccer Ball Inventor, invented by a young Harvard trained Nigerian Jessica Matthews was Friday presented to President Goodluck Jonathan at the State House, Abuja.
In his presentation of Matthews product, the Minister of Industry, Trade and Investment, Dr Olusegun Aganga said it was multi-purpose product that could be used to not only generate electricity but also charge mobile phones.
“We are also looking at the possibilities of manufacturing it in Nigeria and see how we can make it cheaper in this country. I am glad that Jessica has also agreed to be one of our Ambassadors in terms of promoting entrepreneurship in our universities”, Aganga said.
According to him, “the President recently launched what you call the University Enterprise Development Programme where we are encouraging universities to have Enterprises Clubs. One thing we want to do is to bring successful entrepreneurs like Jessica to inspire them and make them more creative so that they can also be employers of labour and encourage them to think more deeply”.
The minister lauded the inventor and the product, observing that “she is an inspiration to every Nigerian, especially our children in Nigerian Universities. This is a product not only for Nigeria but a product made in Nigeria by a Nigerian and for the world.”
Appreciating the work, President Jonathan congratulated the inventor on her creativity and innovativeness, saying he was particularly impressed that she was multi-talented and has developed herself in science despite the fact that she was a psychologist and economist.
“It is a proof of the quality of human resource we have in Nigeria,” he noted, adding that her presentation of the invention at home, here in Nigeria showed that she is patriotic."
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Nigeria’s 2012 petroleum exports valued at N15.1 trillion .
Monday, 12 August 2013 21:21 By Roseline Okere Business Services - Business News
.THE Organisation of Petroleum Exporting Countries (OPEC) has put the value of Nigeria’s petroleum exports in 2012 at $94.64 billion (N15.1 trillion).
OPEC in its Yearly Statistical Bulletin for 2012 released at the weekend put the country’s value of export at $142.52 billion and value of import at $35.71 billion.
According to OPEC: “Nigeria’s natural gas exports increased from 25,941 million standard cubic feet in 2011 to 28,266 million standard cubic in 2012, representing nine per cent increase from the previous year.
It disclosed that Nigeria’s natural gas gross production increased from 84.004 million standard cubic feet (mscf) in the previous year to 84.845 mscf in the year under review.
The country marketed gas production was put at 42.571 mscf; flared 13.182 mscf; re-injected 20.520 mscf and had shrinkage of 8.573 mscf in 2012.
The report said that the country produced 1.954 million barrels per day of crude oil in 2012, representing a decrease of one per cent from the 1.974 mpd it recorded in the previous year.
Also, in its August monthly report released at the weekend, Africa’s oil production is anticipated to increase by 80 tbpd in 2013 to 2.39 mbpd, unchanged from the previous month.
It added that despite the steady state, there were minor upward and downward revisions that offset each other.” In Africa, oil production from South Sudan and Sudan and Ghana is seen to experience yearly growth while supply from other countries is seen to either remain flat or decline”.
The report added: “Total OPEC crude oil production averaged 30.31 mbpd in July, was down by 0.10 mbpd from the previous month. Crude oil output from Libya and Iraq fell, while production increased from Saudi Arabia.
According to secondary sources, OPEC crude oil production, not including Iraq, stood at 27.34 mbpd in July, a drop of 0.05 mbpd over the previous month.
“Preliminary figures indicate that global oil supply increased by 0.08 mbpd in July to average 89.95 mbpd. Non-OPEC supply saw growth of 0.17 mbpd, while OPEC crude production decreased by 0.10 mbpd. The share of OPEC crude oil in global production remained steady at 33.7 per cent.
“The demand for OPEC crude in 2013 is forecast to average 29.9 mbpd, almost unchanged from the previous report and 0.4 mbpd lower than in the year before. In 2014, demand for OPEC crude has experienced a slight change since the previous report to stand at 29.7 mbpd. This represents a decline of 0.3 mbpd compared to the year before.
Meanwhile, the International Energy Agency (IEA), trimmed its outlook for oil demand over the next 18 months and highlighted threats to the dominance of OPEC.
The IEA said that new data on the difficulty the global economy is having in picking up speed meant that demand for oil would grow by slightly less than it had foreseen in July.
The agency said that it was trimming its forecast for growth of global oil demand this year by 30,000 barrels per day to 895,000 barrels per day because the International Monetary Fund had lowered its forecast for growth of the global economy from 3.3 percent to 3.1 percent.
The IEA also reported that output by Iraq fell below three million bpd for the first time for five months and exports were expected to plunge by about 500,000 bpd from September owing to work on infrastructure at southern ports.
It also spotlighted violence, unrest or tension in Algeria, Nigeria, Egypt and Syria.
The IEA said. “Many commentators are questioning its implications for the future of OPEC. It would have to cut its supplies under pressure from shale oil “unless falling prices curb shale oil production first.
“But at the moment, Opec’s main problem is “in bringing production to market”. Opec’s production last month “was down 1.1m bpd on the year” mainly owing to “domestic developments in some member countries”
“In an effort to reduce oil theft and pipeline damage that has led to an estimated annual loss of 60 kbpd and caused massive environmental problems, Nigeria’s largest producer Shell plans to invest $1.5 billion on a new pipeline.
“Shell was forced to close the Nembe Creek pipeline for repairs after discovering more than 50 break points along the near 100 km trunkline. In 2010, Shell spent $1.1 billion to replace the Nembe Creek pipeline due to damage. The new pipeline, called the TransNiger Pipeline Loop?line, should help reduce oil spills in the Niger Delta because it will circumvent the Ogoniland region of Nigeria, where a large volume of bunkering and pipeline damage takes place”, it added.
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Nigeria: Why Nigeria Imports N1bn Rice Daily
By Shehu Abubakar, 8 August 2013 Related Topics
Nigeria
A major rice farmer and merchant, Alhaji Haruna Ibrahim Jega, has described the large importation of rice by Nigeria,
to the tune of N1 billion daily, as madness, unnecessary and waste of resources, saying if government can afford to invest N365 billion annually for three years in research, establishment of standard rice mills and enhancement of rice production in the country, Nigeria will be one of the major rice exporting countries in the world.
Apparently reacting to a statement by the Minister for Agriculture, Dr Akinwunmi Adesina, that Nigeria is importing rice worth N1 billion daily, Alhaji Jega, said bad government policies on self sustenance and greed by Nigeria's business class who are making a fortune from the imports are responsible for 'this wasteful venture.'
"Nigeria has vast fertile land good for the production of rice and other food and cash crops. The only problem with rice production in this country is poor policies and inadequate support from government. Let government provide enough fertilizer to all classes of farmers; smallholders and the big farmers at subsidized rates; provide improved rice seeds that can produce long grain rice that can compete with the imported ones and give farmers loans with single digit interest to enhance production.
"Government should establish at least six world standard rice mills and privatize them. Establish rice marketing board that will buy the rice as soon as the farmers harvest it. Let the river basins provide facilities for triple cropping per annum. Give us just two years and see what rice farmers can do. But a situation where government itself encourages patronage of imported rice by abandoning local rice and buying the imported ones for school feeding, as relief materials to foreign and local beneficiaries is very discouraging," he said.
Mr. Tunji Owoeye of the Rice Millers and Importers Association of Nigeria said at the inaugural meeting of the Nigeria agribusiness group recently that government's grant of waivers to some privileged importers of rice is threatening local production and fast replacing local rice with the imported variety in the nation's markets.
He said his association had provided the Nigerian Custom Service with vehicles to help them in patrolling the country's porous borders to checkmate the smuggling of rice into the country, adding, "the continuous importation of the products makes it difficult for rice millers to stay in business as they are disadvantaged in relation to their counterparts abroad."
Responding, the Minister for Agriculture, Dr Akinwunmi Adesina, said his ministry introduced dry season rice farming in 10 northern states with a view to encouraging local production which, he said, has been very fruitful, adding that rice importation by Nigeria only ended up enriching countries like India and Thailand where the rice originates from while making Nigerians poorer.
When this reporter visited Wuse, Utako and Gwarimpa markets in Abuja, the federal capital, assorted imported rice in bags, water proofs and packets were seen in almost every foodstuff stores with very few of them selling the local rice variety.
At some of the supermarkets and shopping malls in the city, no trace of local rice variety was seen on display as assorted packets of imported rice from different countries were seen on display in the shops.
One of the women seen buying packets of the imported rice, Hajiya Nafisatu Isa, said, "I cannot remember when last I ate the local rice milled in Nigeria because it has a lot of stones, it looks dirty, it is not attractive and very expensive. A bag of imported long grain rice sells for about N12,000. I read in your paper that a bag of unpeeled Nigerian rice is sold at N6,500. That is the unpeeled! You must mill one and a half or even two bags of unpeeled to get one of rice.
"In any case, the imported rice is of higher quality and you have less work to do to it before eating. Removing stones from the local rice is hectic work that not everyone can do. No, it will be unfair for government to contemplate banning the importation of rice. They should leave the market open to competition. Let it remain as it is, where foreign rice will be sold side by side the imported variety for people to go for the one they want," she said.
A rice miller in Abakaliki, Ebonyi State, Mr. Kingsley Anyaji told this reporter that Nigeria does not have standard rice mill that can mill long grain rice that can compete with imported rice, adding, "our type of mill cannot mill that kind of long grain rice being imported. In fact, for you to get that kind of long grain rice produced in Nigeria, we must start by planting and harvesting that variety.
"Getting the seed that can produce long grain rice is not enough; we must get the soil tested to determine the area that long grain rice can grow. It is not everywhere that it grows. Again, you must apply the appropriate fertilizer for it which must be enough. Then you come to the use of the appropriate machines for harvesting and thrashing it, then to the use of the world standard mill. All that require huge investment that the private sector alone cannot do.
"That is why you see people going into the mass smuggling of rice into the country. If Nigeria should adopt all the processes of farming, harvesting and producing the long grain rice, a 50 kilogramme bag will cost not less than N18,000. Who will buy it when you can just cross the border to Niger or Benin republics and pick a bag at N5,000 now? Even the local rice we are producing here now cost higher than the long grain rice in our neighbouring countries," he said.
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Nigeria Not Responsible for U.S.$700 Million Revenue Loss, Shell Admits
By Juliet Alohan, 8 August 2013 Related Topics
Nigeria
Oil giant Shell has admitted that impact of operating environment in Nigeria was not responsible for the company's $700 million revenue loss in second quarter (Q2) 2013.
The clarification which was made yesterday by a spokesperson of Shell Nigeria, Precious Okolobo, in an email statement to LEADERSHIP, informed that bulk of the loss resulted from impact of weakening Australian dollars on deferred tax liability. According to Okolobo, only $250 million of the total $700 million loss was due to operational challenges in Nigeria including crude oil theft and blockage of Nigeria NLG.
He said: "We wish to correct some wrongful interpretation of aspects of Shell Group earnings in Q2 earnings as announced on August 1, by our CEO, Peter Voser.
"It was disclosed that Q2 Current Cost of Supplies (CCS) earnings excluding identified items were reduced by around $700 million. Of the amount, $250 million was due to operational challenges in Nigeria including crude oil theft and blockade of Nigeria LNG."
The rest of the figure, $450 million, he said, was caused by the impact of the weakening Australian dollar on a deferred tax liability.
Okolobo added that "at no time did Peter Voser refer to Nigerian production outages costing it $700 million in the second quarter, as some media organisations have wrongly reported."
This is coming after the Nigerian National Petroleum Corporation (NNPC) challenged Shell Group over claims that it lost $700 million in Q2 to operating environment in Nigeria.
"With regard to claims by Shell that it lost $700Million by the second quarter of 2013 to crude oil theft and other disruptions in Nigeria, NNPC posits that the loss claims are not localised to Nigeria as reported," acting spokesperson of the NNPC, Tumini Green said in a statement Tuesday.
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Hope rises for traders as Okorocha, Fashola visit Ladipo Market .
Thursday, 07 March 2013 00:00 By Anthony Chidubem Nwachukwu, Chijioke Iremeka and
Abdulwaheed Usamah News - National
.Ndigbo, Lagos gov chart part for progress
HOPE of reopening the Ladipo Spare Parts Market in Mushin, Lagos, which was shut almost two weeks ago, rose as Imo State Governor, Rochas Okorocha, and his Lagos State counterpart, Babatunde Raji Fashola, visited the market Thursday to determine the extent of work done.
Okorocha’s visit came on the heels of the recent courtesy visit to Fashola by the umbrella body of all Igbo in Lagos, Ndigbo Lagos, which stressed that it exists to promote common interests and enhance harmonious co-existence between its people and their host community. Led by its President-General, Prof. Anya O. Anya, the group exchanged views with government and formally presented its new leadership to the governor.
Meanwhile, Fashola told the guest-governor and traders that the developmental efforts in Mushin Local Council stopped a kilometre away from the market because the contractors could not access the market, which he added, would be re-opened as soon as cleaning and demolition exercise were complete.
According to him, the work has become a joint effort by the traders, their leaders and the government: “Most traders are tax-payers and government cannot leave them behind while developing other sectors.
“The state government and traders have no problem, we only need to do some work and finish it so that the traders can get back to their daily commercial activities. The factories in and around the market must be able to operate and keep our young people at work, while traders are doing their own businesses.”
Also, Okorocha said: “When I heard that business was not moving well, I decided to come and determine what went wrong. I have seen the work done, against the first impression I had. Fashola had also promised to embark on meaningful projects that could make the traders happy.”
He appealed to the governor to fix the remaining part of the roads in the market, which were yet to receive attention, stating: “As a performing governor, I know he would give me this as a gift to one’s friend. I’m sure once this is done, he will make the market look like any other part of the state.
“I want to appeal to traders to show understanding and shun factionalisation. Cooperate with him and I will be here to launch the new Ladipo with electricity, water and good road networks.”
According to a release sent to The Guardian by the Publicity Secretary, Chuma Igwe, Ndigbo Lagos also used the opportunity to raise the issue of Ladipo Spare Parts Market, which closure coincided with the visit, as well as the frictions in other markets. It pleaded for the reopening of the market, even as it “condemned the deficit of good conduct and orderliness by operators in the market.”
In his response, the statement noted, the governor immediately set up a committee comprising four commissioners and a general manager of LASG, as well as seven persons appointed by Ndigbo Lagos, to investigate all issues causing the persistent friction at Ladipo and other mentioned markets, and report back to him.
On grievances and complaints by non-indigenes on the high handedness by LASG enforcement officials, the governor enjoined all residents in Lagos to take advantage of the structures put in place to handle grievances, just as he condemned any resort to self-help.
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In Imo, Ihedioha flags off N4.3b road project, offers skills acquisition training to 20,000 youths .
Monday, 17 December 2012 00:00 From Charles Ogugbuaja, Owerri News - Metro .User
THE Deputy Speaker of House of Representatives, Chief Emeka Ihedioha, at the weekend flagged off the rehabilitation by Zerock Construction Nigeria Limited of Owerri-Umuahia Road.
The contract valued at N4.3 billion is expected to be completed in 18 months.
Flagging off the ceremony at Ahiara Junction, Ahiazu Mbaise Local Council on behalf of the Federal Government, Ihedioha said the job would involve improvements, expansion, construction of spur and drainage along the road.
According to him, the job, which took about three years on the drawing board, would highlight “Ahiara Declaration” point by the late Chukwuemeka Odumegwu Ojukwu, in Mbaise.
He also urged the host communities to cooperate with the contractors.
In another development, no fewer than 20,000 Imo youths and women, would in the next few months, undergo training in various skills, ranging from catering, computer programming, auto electric work, joinery among others.
Speaking at the weekend at the Federal Secretariat, Owerri, during the formal flag-off ceremony of the pilot batch of 500 of the beneficiaries, Ihedioha, who was represented by his Special Adviser on Special Duties, Chief Ernest Ibejiakor, said the Federal Government was worried by the high level of white collar unemployment in the country.
The training, which would be carried out in collaboration with the National Directorate of Employment (NDE), would last between three and six months during, which beneficiaries would receive stipends for transport.
At the ceremony, which was attended by the Deputy Speaker’s Special Adviser on Legislative Matters, Chief Jonas Okeke, acting Vice Chancellor of Imo State University, Owerri, Prof. Ukachukwu Awuzie, represented by his aide, Nze Ralph Njoku –Obi, former Special Adviser to Imo State Governor of Protocol, Chief Bright Nwelue, Imo State Coordinator of the NDE, Isichie Jaja, an engineer, Professor of Law, Nnamdi Obiaraeri, monarchs, Ihedioha noted that a start-off grant would be made available to the beneficiaries even as he urged them to be humble, dedicated and resilient.
He also said he would provide them with initial tools on December 20, 2012 while other speakers such as Obiaraeri, Okeke and Awuzie urged the trainees to learn their chosen trades with diligence.
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My voice in audio tape doctored, says Farouk Lawan
By Yusuf Alli, Abuja 16 hours 36 minutes ago
Farouk Lawan
The suspended Chairman of the House Committee on Fuel Subsidy Management yesterday described the audio tape of the $620,000 bribe transaction between him and a businessman Femi Otedola as doctored.
He said that it would require forensic evidence to prove this to be true.
He demanded the airing of the entire audio-visual and the complete video for Nigerians to watch.
Lawan made his opinion known in a statement last night through one of his counsel, Chief Mike Ozekhome(SAN).
The statement said: “We are counsel to Farouk Lawan. He has drawn our attention to an audio visual piece of news aired on Channels Television which purported to be a conversation between Femi Otedola and our client, Mr Farouk Lawan.
“We have listened to and watched the audio with our client, Mr Farouk Lawan. On his instructions, we hereby state that the audio is infertile, vague, puerile and inadmissible in evidence by any Court Of Law or Tribunal.
“Professionally, Channels did make the vital point that the audio was “purported to be their voices”. One simple question here: where is the visual of the audio?
“Recall that Otedola had told the whole world that he used the SSS to carry out a so called “Sting Operation”, which showed Farouk Lawan not only pocketing the sum of $500,000, but also putting some under his cap, in Otedola’s Lagos home.
“On Farouk’s instructions, we debunked this allegation and challenged Otedola or the Police and the SSS to produce this complete audio video, unedited and undoctored.
“Otedola had the opportunity of doing this through Channels TV. But he did not. Rather, he brought highly doctored, manipulated and incomprehensible voices purported to be his and Lawan’s.
“He will certainly require forensic evidence to prove this to be true in this highly technologised world of manipulative evidence that can easily turn a man into a woman. Certainly, the audio was a sorry anti-climax to what Nigerians had been expecting.
“Even at that, let us take the audio ‘evidence’ itself for whatever it is worth. The conversation started somewhere in the middle, not from the beginning and ended abruptly.
“Our client hereby still challenges Otedola to air the entire audio visual and also the complete video for Nigerians to see the setting and environment in which the alleged bribe took place, who said what, to whom and for what.
“Secondly, our client believes that the entire footage is devilish, satanic, luciferous, mischievous and completely taken out of context. Even then the audio shows that it is Otedola offering to pay the balance of the alleged bribe of $2.5million, not Farouk Lawan.
The lawmaker said the audio tape has raised many questions than answers.
He added: “Even from what was said, there was no mention of the purpose of the alleged balance of $2.5 million or any mention of Mr Otedola’s indicted companies, Zenon Oil and AP Petroleum, whose desired removal from the Committee’s indicted companies list allegedly formed the fulcrum of the bribe itself. If it was actually a “sting operation”, why is it Mr Otedola and not the SSS officially releasing it on Channels TV? The audio has raised more questions and doubts than answers. Farouk Lawan says it is a doctored anti-climax.”
Channels did not say it got the audio recording from Otedola.
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Nigeria: Major Marketers Cited in Widespread Subsidy Abuse
29 June 2012 Comment
Major oil marketers comprising Oando Plc, Forte Oil Plc, Total Nigeria Plc and MRS Plc, among scores of other independent oil marketers and importers of petrol, have been named by a Federal Government committee as having commited multiple infractions in the fuel subsidy scheme.
Details of the 17 infractions, which were exclusively reported by THISDAY yesterday, are contained in the report of the verification committee headed by the Managing Director/Chief Executive Officer of Access Bank Plc, Mr. Aigboje Aig-Imoukhuede.
The report also showed that despite the payment of N451 billion as 2011 subsidy arrears from the N888 billion earmarked for subsidy payments in the 2012 budget, the Nigerian National Petroleum Corporation (NNPC) and private oil marketers still have outstanding claims of N384,450,487,333.99 to be paid by the Federal Government.
Independent oil marketing companies fingered in the report include Capital Oil & Gas, NIPCO Plc, SPOG Petrochemical Limited, Sahara Energy Limited, Masters Energy, Honeywell Oil & Gas, Rahamaniyya Oil & Gas, Atieo Energy Resources Limited, Eterna Plc, Obat Oil & Petrol Limited and Folawiyo Oil Limited, among others.
The report showed that the oil marketers committed a wide range of infractions ranging from lack of evidence of sales proceeds in commercial banks, to the non-payment of a N20 million re-engagement fee for non-performance in the area of petrol importation, which should have been surcharged by the Petroleum Products Price Regulatory Agency (PPPRA).
For instance, of 857 transactions reviewed by the committee, 112 transactions were discovered as not having evidence of sales proceeds based on banks' available records at the date of verification.
The total subsidy claims in respect of these transactions was N157,549,854,482.55.
Similarly, 88 companies were discovered to have collected subsidies amounting to N121,897,757,962.56 without the signatures of external auditors and independent inspectors on shore tank certificates.
Marketers, which were identified by the committee to have commited infractions, will have the over-payments ascribed to them deducted from their outstanding subsidy claims, presidency sources revealed.
The report also showed that the total outstanding arrears owed the private marketers from 2011 amounted to N67,298,074,641.03, while the outstanding NNPC claims was N317,152,412,692.96.
Both NNPC and the marketers made total claims of N2,109,386,944,946.92 in 2011, with the corporation claiming N981,734,423,649.56 while the oil marketing and trading companies submitted claims amounting to N1,127,652,521,297.36.
The committee's report, however, noted that outstanding arrears from 2009 and 2010 subsidies were included in NNPC's claims for 2011.
Of the N981.7 billion claims submitted by NNPC for 2011, the corporation paid itself N764,944,448,471.72 by deducting it directly from the cost of crude oil allocated to it by the Federal Government.
NNPC also deducted another N210 billion in 2012, leaving N6.78 billion as government's outstanding obligation.
But in 2012, the corporation submitted fresh claims of N310,362,437,515.12 as arrears of 2009, 2010 and 2011, bringing its total outstanding arrears from 2011 to N317.15 billion.
Of the N1.125 trillion claims made by the oil marketing and trading companies in 2011, the Federal Government paid N866,665 billion to the marketers in 2011, while another N246.171 billion was paid in 2012 as part of the 2011 arrears, leaving a balance of N12.8 billion.
However, in 2012, the marketers submitted additional claims of N54.48 billion as arrears of 2011, bringing their total unpaid arrears to N67.298 billion.
Of the N888.1billion earmarked for subsidy payments in the 2012 budget, a total of N231.8 billion was meant for the payment of the 2011 arrears.
But the payment of the arrears has gulped N451 billion, with N384.45 billion outstanding, which prompted the Minister of Finance and Coordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, to suspend the payment of both the arrears from 2011 and claims for 2012, pending the completion of the forensic audit and verification exercise undertaken by the committee.
Meanwhile, oil marketers yesterday called for the immediate payment of all valid outstanding claims for 2011 and 2012.
The marketers also urged the finance ministry to ensure the immediate resumption of the issuance of Sovereign Debt Notes (SDN) by the Debt Management Office (DMO) for all legitimate transactions that have been completed and audited.
In a statement, the marketers said due to the fact that the issuance of SDNs for 2011 arrears and the current 2012 petrol import transactions were initially delayed and now currently suspended, they now have huge outstanding, verified and unpaid subsidy claims in excess of N200 billion with the Federal Government.
They argued that the non-reimbursement of the subsidy claims impairs the ability of any company to meet its obligations to the banks for loans advanced for the purpose of importing petrol under the scheme.
The marketers said conflicting statements by senior government officials on the adequacy or inadequacy of the amount appropriated for subsidy in 2012 and the subsequent halt in issuance of the SDNs, has led to an atmosphere of extreme uncertainty in which most banks are reluctant to provide further funding for importers.
Others, the marketers said, are only willing under extremely severe and uneconomic terms to fund their companies.
"Based on the foregoing, we hereby request that as a matter of extreme urgency and as the only means to ensure continued importation and supply of regulated products (petrol and kerosene), the following actions are taken: the Ministry of Finance ensures the immediate resumption of the issuance of SDNs by DMO for all legitimate transactions that have been completed and audited;
•PPPRA ensures conclusion and calculation of all outstanding legitimate claims (including but not limited to foreign exchange and interest rate differential claims) by June 30th, 2012;
•Ministry of Finance ensures cash backing for the SDNs that have already been issued and payment effected;
•All valid outstanding claims for 2011 and 2012 are paid without further delay as well as a statement assuring the finance community of the Federal Government's ability and willingness to make good its obligation to importers in relation to the subsidy scheme be issued by PPPRA and the office of the Honourable Minister of Finance."
The Federal Government committee was made up of Aig-Imoukhuede (chairman); Director General, Budget Office of the Federation, Dr. Bright Okogu; Dr. Director General, Debt Management Office, Dr. Abraham Nwankwo; Accountant General of the Federation, Mr. Jonah Otunla; and Executive Secretary, Petroleum Products Pricing and Regulatory Agency (PPPRA), Mr. Reginald Stanley.
Other members included former Group Executive Director, Finance and Accounts, Nigerian National Petroleum Corporation (NNPC), Mr. Michael Akorodare; Deputy Director, CBN, Mrs. Onyinye Ahuchogu; Mrs. David-Borha; National Secretary, Independent Petroleum Marketers Association of Nigeria (IPMAN), Mr. Mike Osatuyi; and Executive Secretary, Major Marketers Association of Nigeria (MOMAN), Mr. Obafemi Olawore.
In addition to the efforts by the finance minister to eliminate graft in the subsidy scheme and improve the management of the PSF, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, last January set up a number of task forces to reform the oil and gas sector.
One of such task forces is the 11-panel headed by Mr. Dotun Sulaiman on governance and controls in NNPC and other parastatals under the petroleum ministry.
The other is the Udo Udoma Petroleum Industry Bill (PIB) Special Task Force, which is working with a technical committee that is reviewing all versions of the bill to produce a new draft, while a third is the Nuhu Ribadu Petroleum Revenue Special Task Force meant to enhance probity, transparency and accountability in the operations of the petroleum ministry.
A fourth is a task force chaired by Dr. Kalu Idika Kalu to review the operations of the nation's four refineries and proffer solutions to optimise performance of the plants.
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Russia to build Nigeria’s N697b nuclear power plant
WEDNESDAY, 06 JUNE 2012 00:00 BY SULAIMON SALAU BUSINESS SERVICES - ENERGY REPORT
THERE were indications that Russia has been contracted for the construction of Nigeria’s first Nuclear Power Plant (NPP) that is expected to boost power generation in the country.
According to the Director of RosAtom Sergey Kirienko, the contract, which was signed in Moscow on Monday, would cover the building of nuclear project worth about $4.5 billion (about N697 billion).
He said the contract was an evidence of the world’s high trust in Russian nuclear technology. Kirienko recalled that 10 new NPPs were built in the world last year, three of which were constructed with Russian technology.
According to him, the signed contract stipulates cooperation in projecting, building and running an NPP in Nigeria.
The capacity of the first power-generating unit will be up to 1.2 thousand megawatts.
Although nuclear energy resources are not being presently used for electricity generation in Nigeria, an Inter-Ministerial Committee on energy resources in Nigeria was set up in April 2004 and the committee concluded that nuclear power technology should be introduced into the national electric power generation mix.
Energy Commission of Nigeria’s studies have also identified a role for nuclear power technology in the nation’s electricity generation programme, which by government directive should come on stream by 2020. In the same study, it was projected that nuclear technology should contribute at least 4,000 MW to the total national electricity supply by 2030.
The establishment of the facility has however raised concerns among stakeholders who believed that safety is an issue to contend with, judging from the Fukushima experience.
But the Federal Government insists that it is capable of managing the challenges.
The Minister of Power, Bart Nnaji had recently assured that the power sector reform is already yielding good results, considering the international investors’ interest in the sector.
He said: “We are confident we shall attain this quantum of power during this period (by 2020). The international investor community has demonstrated in the last few months great faith in the direction, which the Nigerian power sector is now headed. General Electric, the world’s largest electricity company, has signed an MoU with the Federal Ministry of Power to help build plants to generate 10,000MW.
“It will also invest between 10 and 15 per cent in the new plants, the first time ever GE is investing in West Africa. Siemens of Germany has followed in the GE steps by signing an MoU with Nigeria to assist generate 10,000MW, invest in new power stations and build a service station in Nigeria, the first time ever.
“Daewoo Corporation of South Korea will sign an MoU with the Federal Ministry of Power next week. Not to be forgotten is that, apart from the World Bank, world class companies like U.S. Exim Bank, Essar of India and Tata of India as well as Manitoba Hydro International of Canada have taken concrete steps to participate in the ongoing power sector reform in Nigeria,” he said.
Nnaji, who assured that revolution is about to be unleashed in the electric power sector, said: “This revolution will produce more profound results than we have seen in telecoms since 2001 following the sector’s liberalisation. The consequence will be unprecedented socioeconomic progress for all.”
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Nigeria: Dangote - Obajana Cement Plant to be World's Biggest By 2015
BY YUNUS ABDULHAMID, 12 JUNE 2012
Leonard Mogamba/The East African
Cement factory
President of the Dangote Groups, Alhaji Aliko Dangote, has unveiled plans to transform the Dangote Cement Plant in Obajana, Kogi State to the world's largest cement factory by 2015.
Speaking yesterday when President Goodluck Jonathan commissioned the new Line 3 of the plant in Obajana, Dangote said: "With the completion of our 5.25 million metric tonnes per annum (mmtpa) Line 3 Plant, Obajana will become the single largest cement plant in the world with a combined capacity of 10.25 million mmtpa. We have achieved all these in less than 10 years!"
He said the 3.0 mmtpa Line 4 Plant, whose foundation stone was also laid by President Jonathan, will further take the capacity the factory to 13.25 mmtpa, when completed by 2015.
"This will indeed make us the power house of cement in Africa," he said.
President Goodluck Jonathan in his remarks praised the Dangote Group which he said has put Nigeria on the world map of business.
Relevant Links
• Jonathan Seeks More Efforts to Crash Cement Price
• Emulate Dangote, Jonathan Charges Citizens
He said; "It gladdens my heart that Dangote is spearheading a silent industrial revolution in the country through its laudable activities that have put Nigeria on the worldmap as an emerging economic giant in Africa" adding that the commissioning further cement the company's capability to compete effectively with other global giants in the industry and also fast track Dangote Cement's ambition of ranking among the top eight cement producing companies in the world by the year 2015.
The President said Alhaji Aliko Dangote, was a natural choice for Chairman of a Committee set up by government two years ago to study the issue of job creation with a view to proposing policies and formulating strategies that will help us boost job creation.
The host governor, Capt. Idris Wada of Kogi State said: "Alhaji Aliko Dangote is a focused industrialist who has the interest of Nigeria at heart," adding that he has demonstrated the fact that Nigeria is the best place in the world to invest.
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UNIPORT, firm partner on herbal medicine research
By Our Reporter 07/06/2012 00:00:00
AN indigenous research institute in natural medicine Pax Herbal Clinic and Research Laboratories (Paxherbal) in Ewu, Edo State has signed a Memorandum of Understanding (MoU) with the University of Port Harcourt (UNIPORT) on research in herbal medicine.
The Vice-Chancellor of UNIPORT, Prof. Joseph Ajienka and Rev. Fr. Anselm Adodo, chief executive officer, Paxherbal, signed the agreement.
The Vice-Chancellor said the advantages of the MoU include harnessing the unique strengths and experiences of the two institutions for the development of herbal therapies and health care. That will involve, among other things, a review of the curriculum on alternative medicine for undergraduate Pharmacy students in the institution, with the opportunity for practical training at the Pax Centre, Ewu, Edo State.
The terms of the agreement include the parties promoting inter-institutional co-operation, science and knowledge exchange; establishing and encouraging mutually beneficial research studies and activities; exchange in research among academic staff members for training, research, teaching and presentation of special courses in their fields of herbal therapies, health care; and share knowledge and expertise in herbal therapies and health care which involves the establishment of an outlet for displaying and sale of PaxHerbal products at the University of Port Harcourt.
In their remarks Prof. Ajienka and Rev. Fr. Adodo re-affirmed their resolve to ensure that the MoU is not just a partnership on paper but one that works and that will impact on the society.
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IMO TO PARTNER WITH EXPERTS FROM THAILAND TO BOOST RICE PRODUCTION
Posted: 11-Apr-2012 [14:17:18] by Online Unit
.Imo State government has entered into a negotiation with some experts from Thailand to commence massive production and processing of rice at a location in Arondizuogu, Ideato-North Local Government Area.
Speaking during a Thanksgiving church service in honour of the member representing Ideato Federal Constituency at the National Assembly, Hon. Eddy Mbadiwe, the governor, Owelle Rochas Okorocha disclosed plans by his administration to engage in massive production of rice under the present agricultural transformation programme. In his words, “…the State government has commenced negotiation with a team of experts in rice production who are already in the State.
Our intention is to ensure that we produce enough rice for local consumption and commercial purposes. Therefore, the Arondizuogu Rice Mill has been taken over by the government and with the assistance of the experts from Thailand, we will commence cultivation and processing of rice in a commercial quantity.”
Speaking further at the occasion, the governor said that similar steps have been taken to ensure that each Community in the State plants at least 20,000 improved palm seedlings, adding that the State would be economically independent while massive job opportunities will be created for the teeming unemployed youths under the ongoing agricultural transformation programmes.
He restated the commitment of his administration to remain focused in the bid to rebuild Imo into a model State with vast investment opportunities.
Responding, the Lawmaker representing Orlu/Orsu/Oru East Federal Constituency, Hon. Jerry Alagbaoso enjoined all Imolites to support the efforts of the State government, describing Governor Okorocha as a ‘detribalized Nigerian’ who sees the entire Imo State as his constituency.
Also speaking, the member representing Owerri Federal Constituency, Hon. Onyewuchi Ezenwa urged the governor to remain focused with his massive transformation projects which are capable of making Imo an economically viable State with great investment opportunities.
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IMO STATE INDUSTRIES:
Existing factory and crafts industries are classified into seven groups reflecting the types of major activities. These are:
• Manufacturing,
• Agriculture,
• Building and Construction,
• Mining and Quarrying,
• Water, Gas, Electricity,
• Services and
• Others.
There are a total of 11,607 industrial and business establishments in Imo State: 9,274 are in the services/business, 1,858 in the manufacturing sector, 416 in building and construction, 53 in agricultural activity, while three establishments each are in mining and quarrying as well as in water, gas and electricity.
Entrepreneur in the state need a great deal of support to enable them tool-up their factories and energize their productivity engines. In the good old days, the major state-owned industries in Imo included:
Standard Shoes Company, Owerri, which produced different types of footwear;
Clay Products, Ezinachi-Okigwe, which produced burnt bricks for all kinds of buildings;
Sack Hercules, Owerri, which assembled motor-cycles and bicycles;
Nsu tile Factory, Ehime-Mbano,
Imo Health Foods Limited, Ubakalo,
Adapalm Nigeria Limited,Ohaji-Egbema, a palm oil processing plant
Imo Modern Poultry Limited, Avutu-Obowo;
Modern Produce Inspection Laboratory, Owerri, and
Oguta Motels Limited, Oguta.
Some of these industries are still in operation but at much below world-class performance.
Industries under partnership included or still includes -
Fuason Industries, Owerri, which produces galvanized iron sheets, the
Afrik Enterprises, Awo-Omama, a pharmaceutical company,
Imo Concord Hotel, Owerri. Industries that had been partially privatized include
Card Packaged Industry, Orlu,
Resin Paints Limited, Aboh Mbaise and
Aluminium Extrusion Industry, Inyisi.
Industries in the private sector include:
Sab Spare Parts and Allied Accessories, Okigwe, which make motor-spare parts,
Oma Pharmaceutical, Awomoma, which produces drugs and medicines,
Magil Industries, Atta, which makes steel, sponge, bread, polythene and paper.
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INDUSTRY: INYISHI ALUMINIUM EXTRUSION COMPANY.
HOW DOES THE INYISHI ALUMINIUM EXTRUSION COMPANY COMPARE WITH JINDAL ALUMINIUM LIMITED [JAL]?
IMO STATE GOVERNMENT SHOULD EXPAND THE INDUSTRY BY ADDING A COMPLIMENTARY ‘POLYMER EXTRUSION’ INDUSTRY NEXT TO IT.
[NOTES]
JINDAL ALUMINIUM LIMITED, INDIA.
Jindal Aluminium Limited (JAL), established in 1968, is the leading manufacturer of Aluminium Extruded Profiles in India, located in the serene outskirts of Bangalore city with latest addition of 7th press of 1650 ton capacity; JAL is the only aluminium company in India having 7 aluminium extrusion presses under one roof.
What started as a humble beginning with one 1500 ton American Press, gradually expanded to a current collection of world renowned makes of seven extrusion presses, each with a different capacity, PLC controls and modern handling systems.
Jindal Aluminium Limited (JAL), is the largest manufacturer of aluminium extrusion profiles in India. JAL commands approximately 25% market share in India and is exporting its products to more than 27 countries across the globe. JAL offers its customers the very best in aluminium extruded profiles, very intricate and sophisticated sections. With its well equipped Top Notch Tool Shop having latest CNC, EDM, Wirecut machines, JAL can develop dies for any kind of new sections within the shortest possible time.
JAL offers wide range of extruded profiles in different aluminium alloys - AA 6063 (63400), 6061 (65032), 6351 (64430), 64423, 6262, 6005, 6082, 6060, 2014, 2024. EC Grade alloys - E1E (19501) and E91E (63401)
JAL’s assortment of 7000 different aluminium profiles cater to the high quality aluminium extrusion requirements in various sectors like Building, Agriculture, Railway and Road Transport, Industrial, Electrical, Electronics, Defence, Aerospace etc.
Aluminium Extrusion
JAL has 7 presses of different capacities ranging from 750 tons to 4000 tons; i.e. one each of 750 tons, 1500 tons, 1650, 2000 tons, 2400 tons and 4000 tons capacity with installed production capacity of 75,000 MT per annum. JAL has a most modern tool shop capable of producing high quality and intricate dies backed up by an international quality billet casting facility.
JAL is a forerunner in installing several technological and modern equipments in order to obtain high quality profiles. JAL has developed in-house foundry using Hot Top casting technology imported from USA, with most modern melting and holding furnaces equipped with automatic temperature controllers.
The adoption of such modern technology produces highly refined close grained and oxide free logs which provide superior finish on the extruded sections.
JAL carries out the following steps to ensure defect free, high quality aluminium extrusions :
The alloy is instantly analyzed using modern Direct Reading Optical Emission Spectrometer which ensures that the composition remains within close tolerance, thereby achieving the desired mechanical properties. It also gives complete traceability.
The logs are homogenised prior to pre-heating them, in order to achieve superior quality, improved finish and uniform grain structure necessary for anodizing and powder coating processes.
The dies and toolings used are manufactured by means of high quality H13 grade imported steel and machined in latest computerised equipments like Jig Boring Machines, EDM Wire Cut Machines, Spark Erosion Machines and several other CNC equipments and hardened in vacuum heat treatment furnace.
Ageing - thermal treatment is carried out using a high velocity air oven with precisely controlled temperature that results in uniform properties in the extruded aluminium profiles
The dimensions of the extruded profiles are checked and ensured by ROMIDOT automatic profile inspection and measurement system.
The extruded aluminium profiles are finally handled by PLC controlled conveyor system till they are packed. The identification and traceability of the sections are also taken care of by imprinting the company logo on each package.
JAL possesses in-house facilities for developmental research and innovation to pursue the fast paced advanced scientific development.
Power House of Production
JAL’s efficient operations are facilitated by some of the company’s highly qualified and experienced engineers in consultation with German and American technical experts.
Some of Jindal’s production records have been as follows :
44707 MT of extrusions during 2010-11 with an actual turnover of over Rs.836 crores.
39996 MT of extrusions during 2009-10 with an actual turnover of over Rs.618 crores.
45903 MT of extrusions during 2008-09 with an actual turnover of over Rs.727 crores.
47230 MT of extrusions during 2007-08 with an actual turnover of over Rs.800 crores. This is the highest production and turnover achieved by any aluminium extruder in India till date.
The production target for the year 2011-12 is 45000 MT with a projected turnover of over Rs.850 crores.
Largest Number, Widest Range
JAL provides fitting solutions for every conceivable need. With its portfolio of extruded profiles in different alloys, the requirement of every industry is catered to. Their assortment of alloys includes:
AA 6063 (63400), 6061 (65032), 6351 (64430), 64423, 6262, 6005, 6082, 6060, 2014, 2024 as also 5000 and 7000 series.
EC Grade alloys – E1E (19501) and E91E (63401)
JAL produces very intricate and sophisticated sections, which meets the country’s needs and rest is exported to earn valuable foreign exchange for the country.
JAL has capacity to produce as wide as 450 mm profiles depending upon shape and size & CCD of 290 mm
JAL has dies readily available for 7000 different aluminium profiles. For details please click here.
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Extrusion of polymers
Dr. Dmitri Kopeliovich
Extrusion is a process of manufacturing long products of constant cross-section (rods, sheets, pipes, films, wire insulation coating) forcing soften polymer through a die with an opening.
Polymer material in form of pellets is fed into an extruder through a hopper. The material is then conveyed forward by a feeding screw and forced through a die, converting to continuous polymer product.
Heating elements, placed over the barrel, soften and melt the polymer. The temperature of the material is controlled by thermocouples.
The product going out of the die is cooled by blown air or in water bath.
Extrusion of polymers (in contrast to extrusion of metals) is continuous process lasting as long as raw pellets are supplied.
Extrusion is used mainly for Thermoplastics, but Elastomers and Thermosets are also may be extruded. In this case cross-linking forms during heating and melting of the material in the extruder.
The thermoplastic extruded products may be further formed by the Thermoforming method.
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The Moment (London)
Nigeria: Roche Group Takes Over Imo Palm Plantation
Charles Onyekwere
3 November 2011
Owerri — IN a bid to reposition the company for economic gains, the Imo State government has finally handed over Adapalm plantation to an Irish Company, Roche Group in Ohaji / Egbema Local Government Area under Public Private Partnership (PPP).
Speaking at the handing over ceremony of the establishments' corporate office at Ohaji, Governor Rochas Okorocha, described Imo Palm Plantation as one of the greatest investments of the state that were mismanaged by the previous administrations.
The governor explained that the plantation was not sold by the government but handed over to a competent organisation for effective management so as to enhance its productivity as well as generate more revenue to the state government.
He added that under the partnership with Roche Group, Imo Palm Plantation would generate 1,500 employment opportunities and provide corporate social responsibilities to boost the development of the host communities.
Okorocha enjoined the people of Ohaji / Egbema to cooperate with the new management to move the plantation forward.
Earlier, the Commissioner for Agriculture and Natural Resources, Mrs.
Adaora Ijezie, applauded the governor for his intervention to resuscitate Imo Palm Plantation and position it to be a viable establishment.
She affirmed that the establishment remains the property of Imo State government even under the new management.
Also speaking, the member representing Ohaji / Egbema Constituency in Imo
State House of Assembly and House Committee Chairman on Agriculture, Mr.Luke Chukwu, said the partnership between the state government and Roche Group has brought to an end the bickering and mismanagement that have hindered the growth of the establishment.
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