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Textile Manufacturers Demand Remittance of N350bn Development Fund



Textile - Investors King
  • Textile Manufacturers Demand Remittance of N350bn Development Fund

Textile manufacturers in Nigeria are seeking the implementation of the Textile Development Fund Levy policy and the remittance of arrears accrued since its establishment estimated to be N350bn to the sector.

In 1997, the Federal Government set aside 10 percent import levy on imported fabrics to develop operations of local textile manufacturers.

The manufacturers said as of the last calculation in 2015, the arrears amounted to N350bn.

They made the demand amid the decision by the Federal Government to slash import duties on colouring, grease and other items for treatment of textile materials.

The stakeholders maintained that import duties on the items listed by the government were not their main concern but the remittance of the amount accrued from the levy to the textile sector so that stakeholders could access the fund for production purposes.

In a telephone interview with our correspondent, the Director-General, Nigerian Textile Manufacturers Association, Mr. Hamma Kwajaffa, said what the government could do to assist the sector’s growth was to remit the proceeds from the levy to the sector, adding that it would aid stakeholders who were unable to access the N50bn CBN fund introduced last year.

“Not everybody can access the N50bn intervention fund. Out of about 50 people who applied, only 15 people were given,” he said.

Kwajaffa said the sector or its practitioners had never benefitted from this levy since its establishment.

He said, “We are supposed to have 10 percent of any fabric coming into the country as textile development levy. Till date, nothing has come to the coffers of textile manufacturers.

“The levy was to cushion the effect of the infrastructure decay that has impeded our competitiveness with other countries and boost the export of locally-produced fabrics.

“In 2015, the country imported about $4bn worth of fabrics. The development levy from this, just like others, we did not get.”

He disclosed that the proceeds were currently being channelled into the Treasury Single Account and appealed to the government to establish it as a fund that would be kept by the Bank of Industry for practitioners to access at a single-digit interest rate.

Also, the NTMA DG said textile manufacturers faced challenges sourcing polyester locally, adding that Eleme Petrochemical plant was unable to produce enough to meet their demand. He added that another challenge was with sourcing of foreign exchange for importation of essential raw materials.

“This has been a major challenge for the sector because we source forex from the black market and this makes it impossible for us to produce at competitive rate,” he said.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.

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Arla Food To Set Up Dairy Farm In Nigeria, Train 1,000 Dairy Farmers



Arla Foods- Investors King

Arla Foods, makers of Dano Milk, has announced that it will build a state-of-the-art commercial dairy farm in Northern Nigeria where it plans to train and support up to 1,000 local dairy farmers as part of its long-term commitment to developing the Nigerian dairy sector.

The 200-hectare farm, scheduled to open in 2022, will have housing for 400 dairy cows, modern milking parlours and technology, grasslands and living facilities for 25 employees.

The firm said the farm is expected to produce over 10 tonnes of milk per day to supply locally produced dairy products to Nigerian consumers.

Managing Director, Arla Foods, Peder Pedersen said “there was a great need for nutritious food and dairy products to satisfy the growing demand from Nigeria’s fast-growing population.”

“This requires a complementary approach where imported food is crucial to ensuring food security while also supporting the government’s long-term agricultural transformation plan to build a sustainable dairy sector in Nigeria,” Pedersen said.

In 2019 Arla scaled up its commitment to developing a sustainable dairy sector in Nigeria with a new public-private partnership with the Kaduna State government.

It is the first of its size and offers 1,000 nomadic dairy farmers permanent farmlands. Arla is the commercial partner that will purchase, collect, process and bring the local milk to market.

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The Board of Chemical and Allied Products Plc (CAP Plc) Appoints Vitus Ezinwa as a Non-Executive Director



Chemical & Allied Products (CAP) Plc - Investors King

The Board of Chemical and Allied Products Plc (CAP Plc) has appointed Dr. Vitus Ezinwa as a Non-Executive Director of the company effective from Thursday June 17, 2021, subject to the approval of the Company’s shareholders at the next Annual General Meeting.

The company announced in a statement signed by Ayomipo Wey, Company Secretary/General Counsel, CAP Plc.

Dr. Ezinwa is a seasoned business manager and human resource professional with experience in leading multinational corporations.

He is currently the Chief Operating Officer (COO) of UAC of Nigeria Plc (“UACN”) and previously, the Group Director of HR at UACN.

Prior to Joining UACN, Dr. Ezinwa worked as Group Human Resources Director for Promasidor Africa; Human Resources Director, CocaCola Nigeria & Equatorial Africa with responsibility for 10 countries and Human Resources Director for British American Tobacco, West & Central Africa covering Ghana, Benin, Niger & Togo.

Dr. Ezinwa was, until recently, the Group Human Resource Director for Tropical General Investments (TGI) Group.

He is a member of the Advisory Board of Afterschool Graduate Development Centre, member of the Institute of Directors and a Fellow of the Chartered Institute of Personnel and Development (CIPD) UK.

He is a co-founder and Director of HR Network Africa and was until 2014, a member of the Lagos Business School’s Advisory Board. He holds a Bachelor’s degree in Sociology/Anthropology from the University of Nigeria, Nsukka, MBA in Management from Lagos Business School, a Master’s in applied business research and a Doctorate in Business Administration, both from Swiss Business School, Zurich, Switzerland.

In addition to holding an executive director role on the Board of UACN, Dr. Ezinwa is a non-executive director of Grand Cereals Limited.

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DLM Capital Group Retains Position as Best Structured Finance & Securitization Team in West Africa



Sonnie Ayere - Investors King

DLM Capital Group, a prominent Developmental investment bank, has once again emerged as the best-structured finance and securitization team in West Africa at the just concluded Capital Finance International (CFI) 2021 awards.

The leading developmental investment bank has won the award in the last three years to affirm its position as the leading investment institution and asset manager in the region.

CFI awards seek to identify the contributions of individuals and organizations that contribute significantly to the advancement of economies and truly add value for all stakeholders.

DLM Capital Group creates bespoke business solutions for alternative financing and harnessing funds for growth. The group focuses on four key sectors — consumer credit, agriculture, microfinance, and education with a mandate to reduce poverty and improve living conditions for Africans, while mobilizing resources for the continent’s economic and social development.

In the past three years, our portfolio management team’s performance has remained consistent, and our clients have benefited immensely from exposure to our solutions, including the NMRC securitization deal and the DLM Primero BRT Securitization,” said Head of Corporate Communications and Marketing, DLM Capital Group, Chinwendu Ohakpougwu.

We are positioned to provide services to an expansive client base of retail, high net-worth and institutional customers. DLM Capital Group remains committed to constantly providing financial solutions that will enable our clients make a difference, and we are honored to be recognized once again as a reflection of the quality of support offered to our clients’,’ she added.

DLM has won recognition in West African capital markets, acting as a sole arranger to over 80 percent of structured finance transactions in Nigeria — and all the securitization transactions. It provides deal structuring, advisory execution and capital raising services across the Nigerian capital market.

The Institution recently launched an asset financing scheme and is preparing a venture into digital banking under its subsidiary, Sofri.

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