[size=14pt]Nigeria: Backward Integration - Manufacturers, Obasanjo Commend Dangote Cement[/size]

2 July 2012 , By Sunday Williams, Source: Daily Trust

The Manufacturers Association of Nigeria (MAN) has lauded the leading role being played by Dangote Cement Plc in the implementation of backward integration policy of the government in the cement sector and called for the replication of the policy in other sectors.

A statement from Dangote Group said that the Manufacturers who gathered in Lagos for their 40th Annual General Meeting described as noble and commendable the position of Dangote Cement on the policy.

President of MAN, Kola Jamodu who was responding to remarks made by former President Olusegun Obasanjo, said there is need for the policy to be replicated in other sub-sectors of the economy and that government should also play its role for other sector players to embrace the policy.

He attributed the successes being recorded by Dangote Cement in the continuous expansion of its plants to accommodate local consumption and export to the policy consistency of the federal government and urged the government to help manufacturers by ensuring that right policies are not only in place but also consistent.

According to him, there are lots of opportunities for investors if the right policies are in place, citing the example of Alhaji Aliko Dangote who he said was just "a cement bagger, but keyed into the policy of backward integration to become a leading cement manufacturer worldwide.

"There was no special privilege enjoyed by him from government, he only embraced the policy and determined to make something out of it. Dangote was not singled out for any favour, he only embraced the policy. Initially there were attempts to truncate the policy but thank God it is still subsisting," he said.

Earlier, Chief Obasanjo who was guest speaker on the occasion had expressed hope that Nigeria could become an industrial giant with the right policies and manufacturers displaying the right attitude.

biafranqueen: honestly you need to import first to start making your connections. You really need to make political connections from DPOS to Commissioners, that is the first thing you do this December. We have a commissioner from our town ask about him and see how you can connect with him. He was working in DC for the government for years and I am sure who ever comes in he will stay because he is neutral. He is now the Commissioner of Commerce for our state Nwanna he is from Nnewi I am sure you know him

manny4life:

Lol, I'm depending on my ( ) for the connections, na she dey import, well she told me when I come in, we have to meet up some few people. I'm not bothered about the Commissioners and DPO's, let me first land first. I'm excited about going home, going home for preparations.

biafranqueen: @ manny he is the Commissioner of Commerce for our state he can tell you what business is best for you at this moment. He lived in the states for umpteen years.

0lumide: Let's not forget how Dangote was importing rice in Nigeria under Abacha!!!! He had the monopoly to import rice oo under Abacha oo!! Naptu2, don't defend the indefensible. Why are we paying more for cements? If Nigeria can not efficiently produce a product, we need to import to save money simple!!!

Milking every dime out of average Nigerians isn't a right way to gather wealth.

'subsidy" removal? Now we have dangote ready to build refinery? Omo na wash una dey oo... When the price was lower he couldn't build the refinery and sell at subsidized rate which he will get paid for anyways?

Cement costs 450 after clearing our ports. Why are we paying 1500+ for something we can manufacture locally? Na wash una dey ooo and government dey there dey look on? na toto una dey suck ooo..

biafranqueen: can you imagine the price hike and your right limestone is in Anambra dats the main ingredient to cement.

0lumide:


the thing tire me. My advice for Anambrans is to allow a native of Anambra buy that limestone deposit, get a cement factory, and manufacture for local eastern consumption, then send the rest out of east to sell at national rates. If Anambra can do that, they will have an advatage in construction over others by a long shot. You know why?:

As a business man, if building in Anambra will be cheaper, provided there will be security, that will be exactly where I will locate my business especially when I'm not dealing with imports and exports. If I'm dealing say 90% local, I won't consider anywhere else but where building my fixed assets where be cheaper.

naptu2:

Are you sure you understood what I wrote? How am I defending the indefensible?

Right here you've just repeated what I wrote. The price will go down if more players come into the business and produce at cheaper rates. Are you advocating for a situation in which we import EVERYTHING, since the issue of poor infrastructure affects virtually everything we produce? Wouldn't it be a better idea to improve infrastructure, encourage more producers to set up shop, create competition commissions and enact campaign finance legislation?

pazienza:


Until we get enough infrastructure on ground to produce and sell at the same price as the imported variety, i say we keep importing from cheaper brands abroad. The majority must not suffer for the few, how many of us are employees of Dangote that the rest of us should buy his cement at throat cutting prices? What's the percentage of nigerians under dangote's pay roll?

[size=14pt]Outrage Over Ban On Tokunbo Cars[/size]

Published on October 3, 2013 by

Nigerians have decried the Federal Government’s ban on the importation of fairly used cars, popularly known as tokunbo cars, into the country, saying it is a policy that would not work.

While some said it would end up improving the economy of neighbouring Benin Republic and fatten the pockets of customs officials as a result of illegal importation, others wondered how the government could just decide on policies without taking into consideration the poor standard of living of the people.

The Federal Executive Council, FEC, had on Wednesday approved the Automotive Industry Development Plan for the development of the nation’s automotive industry and according to the Minister of Information, Mr Labaran Maku, the plan was expected to attract investment to the sector and transform the automotive industry to realise its potential as a major driver of economic growth.

It is believed that this new policy would sound the death knell for the importation of fairly used vehicles into the country.

But to a car dealer, Eddy Okorie, the Chief Executive Officer of Eddyson Dealership Ltd, in his reaction, said the government should have put in place alternatives before even announcing the policy.

“In a country where we cannot manufacture even an ordinary tyre currently, you are talking about an auto assembly plant. Even if you want to, why don’t you set up the plant first and see how it works before gradually phasing out tokunbo cars? How many Nigerians can even afford new cars?

“If the President thinks he can ban tokunbo cars so that he and others can be the only few to own cars, that is not possible,” he said.

Okorie advised that the government must immediately think about reversing the policy in the interest of the country, adding that he was sure the government wanted to cause more confusion so as to shift the attention of Nigerians away from its failure.

“It is not possible. Let us watch out,” he declared.

A member of the Lagos State House of Assembly, Mufutau Egberongbe, said the decision was further evidence of the maladministration of the President Goodluck Jonathan government and the ineptitude of his advisers.

“In a country where the government has failed to provide mass transit scheme, cheap rail and water transportation, the people would create alternatives for themselves and this is why they get the tokunbo cars that are even not for the masses.

“A very good tokunbo car costs at least a million naira. How many Nigerians can afford that? Even if the government has promised the establishment of assembly plants, has it considered the environment? Can such a plant be established without power?” he asked, describing the idea as unreasonable.

He said any good government would allow the assembly plants to thrive while allowing for the importation of cars as part of the free market policy which the government had often preached about.

Human rights lawyer, Bamidele Aturu, said the policy was dead on arrival.

Aturu said the government was groping in the dark concerning its focus. He wondered why the government could think that it could effectively establish assembly plants during the lifespan of the present administration.

“Everyone knows that no such plant is possible in this administration, especially where the government is even owing states allocations.

“If you are going to ask people to come and invest in the automobile industry, what is your environment like? This whole thing sounds like a joke.

“To me, the Federal Executive Council just thought it won’t be nice to come out and tell  Nigerians they have not been working. So they decided on the policy and announced their plan for assembly plants when they know they cannot provide even one,” he said.

Another lawyer, Azeez Olagoke, said it was unreasonable of the government to think in that direction.

“Where’s the environment for that?” he asked, saying he expected the government to set a target of  up to 10 years for the completion of the assembly plants before thinking of phasing out tokunbo cars, and that there should be an assurance that the locally manufactured cars are affordable.

“It is a policy that died before it was conceived and the government must urgently reverse it,” he said.

Rights activist, Biodun Sowunmi, said it was unfortunate that the government enacts policies before considering the people for whom such policies are made.

He also said the decision would create mega dealers and further concentrate wealth in the hands of a very few Nigerians.

“There is no country where tokunbo cars are banned. You can only regulate the age of the cars to be imported. The government must also allow the principle of free trade.

“Create industries for new cars and allow tokunbo cars, then the people can choose,” he added.

The President of the Arewa Youth Consultative Forum, Shettima Yerima, said such a ban cannot be enforced anywhere in the world. Therefore, it cannot work in Nigeria.

“If those in government can afford new cars, how many other Nigerians can? Why do these people formulate policies without consideration for the people they are to serve?

“The government can go ahead with assembly plants and allow for the importation of cars so that people can make their choices.

“We are not slaves and you can’t therefore just coerce us into accepting your products,” he said.

Ipoola Omisore, a member of the Lagos State House of Assembly, said the government was yet to recover from its fumbling and wobbling.

He recalled that through government’s policies the country no longer has a middle class.

“I wonder why the government is banning importation of tokunbo cars in situations where people like me cannot afford a new one except for government’s provision of an official car.

“I like President Jonathan because he is very quick at taking decisions only to end up reversing them with little protests from the people.

“I will just ask Nigerians not to worry because it would soon be reversed since their President is never a man of his words and never courageous,” he said.

Another member of the House, Bisi Yusuff, said though it was a nice idea, “all I can say is, instead of banning, he should have done it in stages.

“He should first establish the plants, let them work effectively before considering banning importation of tokunbo cars.”

—Eromosele Ebhomele

1981 Automobile VER

When the automobile industry in the United States was threatened by the popularity of cheaper more fuel efficient Japanese cars, a 1981 voluntary restraint agreement limited the Japanese to exporting 1.68 million cars to the U.S. annually as stipulated by U.S Government.[1]

The Japanese automobile industry responded by establishing assembly plants or "transplants" in the United States to produce mass market vehicles. They also began exporting bigger, more expensive cars (soon under their newly-formed luxury brands like Acura, Lexus, and Infiniti).

[size=14pt]Nigeria: No Immediate Ban On Used Vehicles, Says Aganga[/size]

4 October 2013 , Source: Vanguard

Abuja

The Federal Government said in Abuja on Thursday that the new automobile policy was not aimed at immediate ban on the importation of fairly used vehicles.

The Minister of Trade, Industry and Investment, Mr Olusegun Aganga, made this explanation at a news conference on the content of the new automotive plan.

Aganga said the policy would, instead, focus on promoting investments in affordable made-in-Nigeria vehicles that will in future minimise their importation.

The new Automobile Industrial Policy Development was approved on Wednesday by the Federal Executive Council.

"This policy will not result in the banning of the importation of vehicles in Nigeria but focus on promoting investments in affordable made-in-Nigeria vehicles that will in future minimise the importation of vehicles" , he said.

Aganga, who said phasing out second hand vehicles, popularly known as 'tokunbo', was a gradual process.

He said what government had done was to raise tariff on importation with a view to discouraging the influx of used vehicles into the country while also encouraging local manufacturing.

According to him, no responsible government would ban importation of used cars without putting in place viable alternatives.

"The importation of tokunbo cars will not be a major threat to the plan. Production of vehicles is in stages and involves a long process.

"You do not remove a thing without providing a viable alternative", he said.

The Director General, National Automotive Council, Mr Aminu Jalal, said the policy would help to open up the industry to many international auto manufacturers.

He said Toyota, Nissan, Renault and GM have all indicated keen interest to invest in Nigeria following the articulation of a comprehensive automotive development plan.

"These companies are now conducting feasibility studies on assembling vehicles in Nigeria.

"The elements of the plan, which will ensure competitiveness and increased productivity of the sector, are: industrial infrastructure improvement, skill development, standards, investment promotion, market development and anti-smuggling measures."

The Chief Executive Officer of Peugeot Automobile Nigeria (PAN), Mr Ibrahim Boyi, commended the Federal Government for the initiative.

He urged the government to map out strategies for the gradual banning of importation of used vehicles.

Boyi, who held that the importation of used cars had been a great challenge to the industry, said there must be a strict regime on the importation of fairly used vehicles.

"It is something that we have been clamouring for and something we have been hoping for.

"When you look at the performance of the industry, it has been a very unfortunate situation for the country.

"Apart from the environmental effects, importation of used cars had remained a great challenge to the industry.

"Most of the vehicles shipped into the country fall short of the stipulated environmental standards of the exporting countries", he said. (NAN)

naptu2:

Are you sure you understood what I wrote? How am I defending the indefensible?

Right here you've just repeated what I wrote. The price will go down if more players come into the business and produce at cheaper rates. Are you advocating for a situation in which we import EVERYTHING, since the issue of poor infrastructure affects virtually everything we produce? Wouldn't it be a better idea to improve infrastructure, encourage more producers to set up shop, create competition commissions and enact campaign finance legislation?

naptu2: The solution is threefold.

1) Massive improvement in infrastructure (power, railways, water, etc). 60 years ago Dangote's great-grandfather moved his groundnuts from Kano to Lagos by train. He also moved his kolanuts from the West to Kano by train. Today Dangote moves his cement across the country on trailer trucks (think of the number of policemen the truck drivers need to bribe!). Think of how much more efficient the trains are.

2) Increase in the number of domestic producers. Phone call and SMS charges were crazy back in 2001/2002. You had a validity period in which you had to use your credit before you got locked out of the system. Phone calls were billed per minute. Phone cards came in 1500 and 1000 naira denominations. Then came Globacom in 2003. They cut the cost of phone calls and text messages, introduced per second billing and lower denomination recharge cards. Etisalat's entry into the market has caused a further crash in mobile phone tariffs. We need more domestic cement producers.

3) We also need a competitions commission and campaign finance laws.

0lumide:

And imposing higher tariff when there are only three or 2 producers is normal? We aren't saying the same thing at all!!!

You are saying Nigerians should start building Dangpte style factories. OBJ used Nigeria to get Dangote unlimited access to loans for investment. Na man wey no get money for school na him go dey build cement factory ni? Naptu we no dey talk the same thing at all.. You know me and you have been having this Dangote argument for a while. His wealth is strictly political not hard work simple!! Talk of people like Arthur Eze, Okoya many many across Nigeria... now those are men who provided what they have given the Nigerian situation. Not milking a half dead cow!!

naptu2:

1) Are you saying that Cletus Ibeto does not have the money to build cement factories?

2) Are you saying that we cannot attract foreign cement producers to set up factories in Nigeria?

3) Are you saying that there are no Nigerians who are wealthy enough to set up cement factories in Nigeria?

I know you guys have beef with Dangote, but come on!

0lumide:

Are you saying only Dangote and Ibeto are enough to supply nigeria's demand for cement that the FG should impose a tarrif like local demands can be met locally? My guy you work as media manager of Dangote ni.. Dangote's push in every industry he ventures in violates the two most important theories and aims of economy which are:

EFFICIENCY AND END RESULT/ PROCESS EQUITY!!!!!!!!!!!!!!

AND OUR GOVERNMENT BOASTING OF A CORDINATING MINISTER OF THE ECONOMY WITH HAVARD GRAD IS THERE LOOKING ON WHILE THESE VIOLATIONS CONTINUE? MY GUY TELL ME SOMETHING ABOUT CORRUPTION AND I WILL EXPLAIN DANGOTE'S LEVEL OF THE ENRICHING PHENOMENON..

naptu2: The fact is that the problem is not Dangote. The problem is those three things I mentioned. Someone else will easily take advantage of the situation (like Multichoice did) if we do not tackle the issues I mentioned.

1) Infrastructure.

2) Campaign finance laws.

3) Competition commission.

naptu2:

1) Are you saying that Cletus Ibeto does not have the money to build cement factories?

2) Are you saying that we cannot attract foreign cement producers to set up factories in Nigeria?

3) Are you saying that there are no Nigerians who are wealthy enough to set up cement factories in Nigeria?

I know you guys have beef with Dangote, but come on!

naptu2:

1) Are you saying that Cletus Ibeto does not have the money to build cement factories?

2) Are you saying that we cannot attract foreign cement producers to set up factories in Nigeria?

3) Are you saying that there are no Nigerians who are wealthy enough to set up cement factories in Nigeria?

I know you guys have beef with Dangote, but come on!

naptu2:

Actually, it's you that seems to be working for or against a person. I'm discussing the issues, while you are discussing a person. I discuss issues, not personalities. Go back and read everything I've written carefully.

manny4life:

When you say infrastructure, can you elaborate?

I know Dangote has power plants in his manufacturing plant so that reduces the cost of production. As for moving goods by road, it doesn't justify the 3x cost over neighboring countries. Please explain further on infrastructures.

As for Campaign Finance Laws, that's another matter of it's own. He spends so much so he can lobby but I think the key issue here is the fact about infrastructure. What type of infrastructure is hindering Dangote from selling at same price as sold in other countries?

0lumide:

STOP RIGHT THERE BRO STOP!!!!

You think investors will come after a freaking tariff? LACK OF ELECTRICITY, BAD ROADS, ETC.. That is why we need to import because the amenities that are suppose to promote efficiency are not there simple!!!!

0lumide:

STOP RIGHT THERE BRO STOP!!!!

You think investors will come after a freaking tariff? LACK OF ELECTRICITY, BAD ROADS, ETC.. That is why we need to import because the amenities that are suppose to promote efficiency are not there simple!!!!


US, UK, AUSTRALIA and GERMANY are nations with some of the highest unequal distribution of wealth. guess what?? it is directly linked to mental problem cases abound in these nations. I will find the graphs from both IMF, UN, WHO etc.. to show YOU naptu the importance of equity in economics!!!

Forget efficiency, it can be sacrificed for efficiency. Every nation is trying to have a balance of efficiency and equity, Nigeria has non. neither efficiency nor equity. Minimum wage is still 18k in a nation health care is not provided, transport is erratic.. Omo, if you want to defend economic saboteurs, you need a good sense of economics to defend them against me bruv!! forget your job, think humanity!!

manny4life:

This isn't about the tariff per say, this is more so about the will of the people to change the tide. I gave an example of groups of people coming together to setup a company that will reduce prices. In China for instance, you have aggressive competition, they have manufacturing villages comprised of several tens of different companies. My point is waiting on govt to do everything won't cut it for you.

Why can't Ibeto apply the same strategy as Dangote? Cosmas Maduka aka Coscharis lost more than $150million with Ifeanyi Ubah, at least, they are contending with each other, why spend an enormous amount on ifeanyi who's an importer whereas you can build a refinery, a depot center, build roads connecting the depot center and if possible lay at leat 20miles of pipeline to other states?

Bros this is about mentality, Nigerians need to change how to view things, this is why I don't really blame Dangote, he's taking advantage of the system. If our state and local governments seat up, if our people (Nigerian people) change their mentality, this will change. The money that Cosharis wasted on Ifeanyi is enough to build a manufacturing village is at least 200 SME (providing them with electricity, portable water, good roads, trading center, etc). Again, we need to change our mentality.