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Raw Materials’ Imports Gulp N19.5tn in Seven Years

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  • Raw Materials’ Imports Gulp N19.5tn in Seven Years

Although Nigeria and many of the African countries are admired for being commodity markets, a study of importation in the country shows that Nigeria has spent as much as N19.5tn on the importation of primary raw materials into the country in the past seven years.

Statistics obtained from the Raw Materials Research and Development Council showed that between 2010 and 2015, Nigeria spent N13.6tn on the importation of raw materials that could be replaced with other materials from local sources if some more rigorous work could be put into the country’s import substitution strategy.

By 2016, the country spent another N5.89tn on the importation of similar raw materials; thus, bringing the total sum spent on the importation of primary raw materials into the country within the seven-year period to N19.5tn. The imports in 2016 included some finished products.

This means that, on the average, the country splashed N2.79tn every year in the past seven years.

In broad categorisation, according to the RMRDC, the importation of cereals into the country constituted the highest source of capital flight in the importation of primary raw materials into the country.

For the first six years (2010 to 2015), cereals worth N2.49tn were imported into the country. This was followed by the importation of plastics, which gulped N1.88tn. Articles of iron and steel used as raw materials consumed N1.59tn.

Other categories of raw materials imports that hit the N1tn mark within the first six-year period were fish and crustacean, mollusc and other aquatic invertebrate, which gulped N1.28tn and rubber, which consumed N1.04tn.

Iron and steel raw materials consumed N949.38bn; sugar and sugar confectionery gulped N897.23bn; dairy consumed N692.37bn; while paper gulped N664.91bn.

Organic chemicals gulped N637.79bn; aluminium and articles of aluminium gulped N470.76bn; pharmaceutical products consumed N371.38bn; inorganic chemicals, N305.73bn; fertilisers, N237.13bn; and tomatoes, N102.69bn.

In 2016 alone, the importation of mineral fuels, oils, waxes and bituminous sub gulped N1.12tn; the importation of cereals gulped a total of N301.08bn; while the importation of fish and crustaceans gulped N206.43bn.

Other imports that consumed considerable amount of money were given as paper, paperboard and articles of paper wood, N129.74bn; miscellaneous chemical products, N124.08bn; plastics, rubber and articles of plastic, N236.47bn; dairy, eggs, and honey, N134.31bn; and animal or vegetable fats, oil and waxes, N62.54bn.

The Director-General, Raw Materials Research and Development Council, Dr. Hussaini Ibrahim, said the high level of imports of raw materials was not good for the economy, adding that government’s intervention was necessary to ensure domestic production of raw materials, which would reflect on declining levels of imports over time.

He said, “Efforts and resources could be properly channelled towards domestic production of the imported items by harnessing domestic potential for successful adoption of appropriate standards, conformity assessment and metrology parameters within the confines of business and societal concerns.

“Given dwindling oil revenue needed for national development, Nigeria’s ambition is to look inwards and commence domestic production of essential raw materials and products, especially in the areas where we have potential to source within the country.”

Similarly, the Minister of Science and Technology, Dr. Ogbonnaya Onu, said any economy not diversified and heavily dependent on the import of raw materials would find it difficult to confront the challenges of the growing shifts in global production and trade patterns.

According to the minister, Nigeria needs to begin to produce what it needs not only in the area of raw materials but also to fully prepare for a post-oil economy.

He said, “To enable us to achieve this, Nigeria should put in place measures that will enable her to emerge as a nation that can produce what she needs and export the surplus to other parts of the world.

“This will strengthen our foreign reserves and boost foreign trade with its multiplier benefits to our national economy. This is the only reasonable way to go. Indeed, we do not even have a choice if we must be the great nation, which we deserve.”

Onu added, “We have put together a novel National Strategy for Promoting Competitiveness in Raw Materials and Products Development in Nigeria. It is intended to confront and defeat the challenges posed by growing shifts in global production and trade patterns. This will help Nigeria conserve her scarce foreign exchange and stimulate global competitiveness that is derived from a resilient domestic capacity in a diversified economy for the good of all.”

The minister said it was in order to achieve this that the government had approved new guidelines for project and contract execution in science, design, engineering and technology in order to infuse local technology.

According to him, the guidelines are designed to drastically reduce capital flight, promote local capacity, strengthen local manpower development, encourage indigenous technology capacity, enhance national self-reliance and restore national pride.

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

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Transcorp Hotels Expand into Marketplace, Launches Aura to Connect People, Hoteliers, Others

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Transcorp Hotels Plc, on Thursday, announced it has launched a new digital platform, Aura, through which people can book accommodation, restaurants and experiences.

Aura, Transcorp’s first in the alternative accommodation segment, is part of the company’s asset-light model, leveraging technology to deliver true hospitality, exciting experiences, and drive shareholder value.

It’s a new dawn in the hospitality industry! I am thrilled to introduce you to Aura by Transcorp, the digital platform we are using to connect people to quality accommodation, great food, and awesome experiences,” Managing Director and Chief Executive Officer of Transcorp Hotels Plc. Dupe Olusola said.

For more than 30 years, Transcorp Hotels Plc has been at the forefront of creating a superior guest experience at our locations. Today, our commitment to innovation has offered us an opportunity to extend this beyond the hotel premises,” Olusola added.

The launch of Aura by Transcorp is one of the most significant developments in the company’s history as it seeks to transform the travel and tourism industry in Africa by focusing on three important components of travel, whether for leisure or business — where you stay, what you eat and how you spend your time. With its people-driven hospitality model, Aura is set to revolutionise travel and help remind Africans of our deep history of hospitality.

Speaking on the launch of Aura, Obong Idiong, Chief Executive Officer at Africa Prudential Plc, Aura’s technology partners, expressed his excitement. “Finding the right accommodation when you travel can be incredibly complex. Options available for the right prices are often limited, and travellers sometimes end up with accommodation that taints the travel experience. Transcorp Hotels Plc has been able to fix that with Aura and we are proud to be associated with them.”

To ensure topnotch user experience, we built a solution to drive digital transformation through the adoption of shared living spaces for the Aura business. With an advanced search algorithm powered by artificial intelligence, Aura determines the relevance of locations taking into consideration, the customers’ preferences and requirements to meet them at the point of their needs,” Idiong added.

Priscilla Adeboye, a travel enthusiast and early adopter of Aura, said the global pandemic has pushed international travel down her list. “But I still want to be able to take some time off work or spend a weekend away from home with the family. I have found incredible homes on Aura that meet my need for space and privacy.

 

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Siemens Energy Nigeria Appoints Seun Suleiman as Managing Director

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Seun Suleiman is the New Managing Director of Siemens Energy Nigeria

Mr. Seun Suleiman is the new managing director of Siemens Energy Nigeria, the company announced on Wednesday.

According to the statement released by the energy company, Suleiman will be responsible for the entire management of operations and decisions on business policies and corporate strategy.

Commenting on his appointment, Suleiman said, “It is an absolute honor to lead the business for Siemens Energy Nigeria and I look forward to delivering on the brand’s promise of excellence.

Suleiman joined Siemens Energy in 2014, bringing over 15 years’ experience and deep expertise in the private sector across Europe and West Africa.

The statement said, “He is an accomplished business strategist and success-driven leader with strong business acumen. Suleiman has also been a core member of the executive management team at Siemens Energy serving in roles as Sales Director West Africa – Service Distributed Generation Oil & Gas and Vice President Service & Digital.

“Prior to this, he also held various functional and managerial positions with ABB Ltd UK, ABBNG Nigeria, Schneider Electric Nigeria and Dresser-Rand Nigeria Ltd.

It added that Suleiman was experienced in establishing operational excellence with specific competence in the power, oil and gas sectors.

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FG Reopens Osubi Airport Warri for Daylight Operations

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FG Reopens Osubi Airport Warri for Daylight Operations

The Federal Government on Monday said the Osubi Airport in Warri has been reopened for daylight operations.

The Minister of Aviation, Hadi Siriki, disclosed this in a tweet.

The airport was closed in February 2020 over mismanagement and debt allegation involving aviation service providers and airport management.

However, Oberuakpefe Afe, a lawmaker representing Okpe/Sapeie/vaie federal constituency, recently moved a motion for the Federal Government through the ministry of aviation and relevant authorities to reopen the airport for flight operations.

On Monday, Hadi Siriki said “I have just approved the reopening of Osubi Airport Warri, for daylight operations in VFR conditions, subject to all procedures, practices and protocols, including COVID-19, strictly being observed. There will not be need for local approvals henceforth.

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