Address
by the President of the Nigerian Society of Engineers, Engr. Ademola Isaac
Olorunfemi, FNSE, during a Press Briefing session on Issues on Nigerian Content
Development
Protocol
Appreciation
Gentlemen
of the Press, we appreciate you for responding to our call so soon after we met
at our 1st Quarter Press Briefing on May 16, 2014.
We
at the Nigerian Society of Engineers recognise the powerful role that the media
play in nation building; information dissemination can either make or mar
developmental efforts in any nation, depending on how it is managed. Hence our
resolve to always partner with you, rub minds and exchange ideas on how best we
can collectively contribute to making our beloved nation even greater.
Misinformation
from BPE
The
primary reason for calling this press conference is to address an impression
that was created in the media recently, which was not correct. Specifically, Daily
Trust edition of Thursday, June 5, 2014 carried a report on page 28 with a bold
title: “No company produces electricity transformers in Nigeria – BPE”. Likewise
did Tribune of Friday, June 6, 2014 on page 12 Gentlemen of the Press, that
statement is misleading and a disservice to the Nigerian Content Development
initiative.
2.
The precursor to the Nigerian (Oil and Gas) Content Development Law of 2010 is
NSE’s Nigerian Content Committee, which is a standing committee set up by the
Nigerian Society of Engineers (NSE) in 2006 to undertake studies and propagate
the totality of composite value added or created in the Nigerian economy, through
the utilization of Nigerian human and material resources for the provision of
goods and services to all facets of our industrial and social life, without
compromising quality, health, safety and environmental standards. The Law is
therefore framed within the context of growth of Nigerian entrepreneurship and domestication
of assets in line with Nigeria’s strategic developmental goals.
In
my inaugural Speech as the 29th President of the NSE, I made a pledge that one
of the cardinal focal points of my administration will be to vigorously push
not only for the diligent implementation of the Nigerian Content law, but also
for its application to all other critical sectors of our economy, namely:
engineering, agriculture, construction, ICT, automotive, shipping, transport, among
others.
Gentlemen,
I make bold to reiterate that the statement credited to the Director-General of
the Bureau of Public Enterprises to the effect that there is no company in
Nigeria that produces electricity transformers is misleading and a disservice
to the efforts of the companies in the manufacturing sector which are
contributing to Nigerian Content development. Such statement becomes worrisome,
coming from an institution of the Federal Government which should take keen
interest in undertakings in the commerce and industry sector of the economy,
and which major functions include minimizing economic inequalities by promoting
healthy competition amongst corporate entities.
Conceivably,
the most appropriate thing is for us to set the records straight because we are
involved.
Nigerian
Transformer Manufacturing Companies
There
are two (2) major electricity transformer manufacturing companies, fully
licensed and in full operation in Nigeria; namely:
-
DANELEC FZE
-
ELSEWEDY ELECTRIC COMPANY LIMITED
Danelec
FZE
Danelec
FZE is the first indigenous manufacturer of 3-Phase distribution transformers,
insulated in mineral oil/resin. Danelec, which has its factory on Plot C6a,
Free Trade Zone, Murtala Mohammed Highway in Calabar, was registered under Nigeria
Export Processing Zones Act on December 10, 2007.
The
company was issued an operating license for the establishment of
transformer/electrical and solar equipment manufacturing factory in July 2008
while it got its SON certification (Certificate No. EE-2043) after the SON
mandatory conformity assessment program (MANCAP) conducted on March 11, 2009.
Other
details about the company include:
-
Process Certification: ISO 9001:2008 (issued Sept. 20, 2010)
-
Installed Capacity: 150 transformer units per month
-
Products Guarantee: 12 months
-
Professional Affiliations: Nigerian Society of Engineers; Manufacturers
Association of Nigeria
-
Endorsements: Fed. Min. of Power, Nigerian Electricity Regulatory Commission,
Rivers, Cross Rivers, Kaduna and Kano State Governments.
Elsewedy
Electric Nigeria Limited
Elsewedy
Electric was established in Nigeria in 2008 in Lagos with an investment sum of
USD 20 million. Its establishment was obviously with a view to contributing
significantly to the Nigerian
economy.
Over the years, Elsewedy has diversified its operations and extended its
production lines to include manufacturing of prepaid electric meters, energy
saving lamps, fibre glass poles, wires and cables.
Specific
details on Elsewedy Electric:
-
Business Permit Certificate issued by Lagos State Government
-
Incorporated in Nigeria and Certified by Corporate Affairs Commission (RC.
781921)
-
Standards Organisation of Nigeria Certification (MANCAP Cert. No. 001026),
issued in 2010 for production of 300KVA transformers.
-
Member, Manufacturers Association of Nigeria (Reg. No. GML/3709), issued
October, 2009.
-
NERC Certification (Cert. No. MF/0004), issued May 2013.
-
Licensee of Standard Transfer Specification (STS) Association, South Africa
(Reg. No. 95/08496/08)
-
Process Certification (ISO 9001:2008), issued in January 2010
-
Installed capacity: 2500 transformer units per annum
In
establishing the Nigerian Content Development and Monitoring Board (NCDMB) in
April 22, 2010, President Goodluck Jonathan specifically saddled it with the
mandate to seek to increase
indigenous
participation in the Oil and Gas industry, build local capacity and competences
and create linkages to other sectors of the national economy to boost
industry contributions to the growth of the country’s Gross Domestic Product
(GDP).
Danelec
FZE and Elsewedy Electric, in their combined capacity, have continually strived
to proffer logical and practical solutions to the challenges of economic
development, especially in the electricity generation and distribution sector. Their
solution model has been based largely on driving down capital flight, through
utilization of about 90% of Nigerian content in both personnel and material
resources in their production processes.
These
companies therefore deserve recognition, encouragement and patronage for contributing
to national development as the volume of investment they can plough back into
the economy will be proportionally related to their Returns on Investment. Patronising
these companies will bring meaning to our recent rebased GDP of $510 billion
which has made us number 1 in Africa.
Some
Other Wholly-Nigerian Manufacturing Companies
Gentlemen
of the Press, there are many other indigenous companies in Nigeria that are
bringing effect to Nigerian Content in other sectors of the economy. We must
also recognize them here.
Innoson Vehicle Manufacturing Co.
(IVM) Ltd.
Innoson
Vehicle Manufacturing Company Limited is a wholly owned Nigerian company
established in 2007 by Chief (Dr.) Innocent Chukwuma, OON. In its ultra modern
assembly plant which was commissioned on October 15, 2010 by President Goodluck
Jonathan in Nnewi, Innoson Limited undertakes optimization design and assembly
of Completely-Knocked-Down (CKD) auto parts to produce the first truly
made-in-Nigeria vehicles that are affordable and reliable.
Body
parts, chassis and other components of Innoson vehicles are fully
made-in-Nigeria. The Engine Axle and Gear Box are the only components that are
imported. It is also worthy of note that 90% Nigerian content in both materials
and personnel is achieved at Innoson.
IVM
Limited is Nigeria’s breakthrough in technological know-how.
Omatek Computers
Engr.
Mrs Florence Seriki started the enterprise called Omatek Ventures during her
Youth Service days to give vent to her passion for computer proficiency. Then,
she engaged in
facilitating
training on use and application of computer systems for bank executives and
their oil and gas counterparts.
Over
the years, Omatek has transformed from the computer training outfit it used to
be to a computer manufacturer of note. In 2008, it recorded a major feat by
beating competition from 42 other countries to become the Best System Builder
in East, West and Central Africa (EWCA), a feat that has not been matched till date.
Omatek also has a record of being the first computer company to be listed on
the stock market. In the company’s repositioning bid, it approached the
Nigerian Stock Exchange for capital muscle through private placement. On June
18, 2008, Omatek was listed, with its shares oversubscribed by N5 billion. The
company has continued to grow and earn respect and acceptance in Nigeria as well
as along the coast of West Africa.
Need
for Patronage
Sadly,
it has been noted that Nigeria and Nigerians will rather buy foreign brands of
Computer Systems and Peripherals instead of indigenous Omatek products and that
of a host of other Nigerian Companies.
There
is a retinue of Government Agencies that must be patronized by Government
itself in the first instance, thus creating awareness resulting to patronage by
Nigerians. These Agencies include but are not limited to; National Agency for Science
and Engineering Infrastructure (NASENI), Nigerian Building and Road Research
Institute (NBRRI), Nigerian Communication Satellite Limited (NigComSat),
National Centre for Agriculture Mechanisation (NCAM), to name just a few.
NASENI:
Establishment of a Center of Excellence in nanotechnology and advance
materials; Establishment of 30Kw Solar generating power plant as back up at
Dalhatu Araf Specialist
Hospital,
Lafia; Commissioning of a 5Kw Small Hydro power turbine at Mada River and
supplying Guda hamlet power off grid, Development of deep well hand pump for
water solution; Production of solar panels; manufacturing of drilling rigs; manufacturing
of motorcycles and tricycles; production of laminating machines; and Cassava
processing machines.
NBRRI:
Research and development in local building and
construction materials such as: Production of Low Cost Ceiling Boards using
Molasses; Design and Construction of Palm Kernel Shell Grinding Machines;
Laterite Mixing machine; Fabrication of Interlocking Block Making Machines with
gloved Mould for Conduit wiring; Development of Natural clay Plaster used for
interior
finishing of building works and Design and Fabrication of Interlocking Paving
Stones vibrating table using plastic moulds.
NIGCOMSAT:
Development of satellites (NigComSat-1 and NigComSat-1R);
development of Micro-Electronic Centre for production of various electronic
products; development of
indigenous
electronic voting system.
Local
Content in the Manufacturing of Agricultural Equipment
The
Agricultural Transformation Agenda of the Federal Government of Nigeria is
laudable. The success of this programme in relation to mechanization shall
require a more rigorous input of highly skilled Engineering personnel and
efficient locally manufactured agro-based equipment and manufacturers.
As
a result of effective local content development within the nation a lot of
competitive, high efficiency and durable agro based equipment such as hammer
mill, bur mill, flash dryers, parboilers, conveyors, screw press, fryers and so
on and locally developed and marketed for the various crops produced in Nigeria.
These can support the value added chain and strategic food reserve programme in
the nation. Notable among the distinguished local manufacturers of agro based
equipment, which are spread all over Nigeria, are a few mentioned below:
-
Tropical Development Engineering Ltd., Ibadan
-
Niyi Lukas Ltd, Lagos
-
Hanigha Ltd, Kaduna
-
Basicon Nig. Ltd., Owerri
-
Edosio-Rich Machines Ltd., Owerri
-
Alaratech Nig. Ltd., Osogbo
-
Segun Ageh Enterprises, Akure
-
Peak Products, Abeokuta
-
Fataroy Steel Works, Ibadan
-
Sahara Engineers, Ibadan
-
Addis Engineering, Ibadan
-
Nova Technology, Ibadan
-
Bifem Technology, Ibadan
Based
on the proven performance of the Nigerian local agrobased manufacturing firms,
the Government and people of Nigeria are enjoined to encourage them by
patronizing them. Other Government parastatals involved in the development and production
of mechanized systems to be encouraged and patronized include:
-
NCAM, Ilorin
-
NOTAB, Abuja
-
NASENI, Abuja
-
SMEDAN, Abuja
-
FIIRO, Oshodi
*
Other such indigenous manufacturing companies
across the length and breadth of Nigeria within the sectoral categorization obtainable
from the Manufacturers Association of Nigeria (MAN), as follows:
-
Food , Beverages & Tobacco Sectoral Group
-
Chemicals & Pharmaceuticals Sectoral Group
-
Domestic and Industrial Plastic, Rubber and Foam Sector
-
Basic Metal, Iron & Steel and Fabricated Metal Products
-
Pulp, Paper & Paper Products, Printing & Publishing Sector
-
Electrical & Electronics Sectoral Group
-
Wood and Wood Products (including furniture) Group
-
Non-Metallic Mineral Products Group
-
Textile, Wearing Apparel, Carpet, Leather/Leather Footwear
-
Agricultural & Agro-Based Equipment Sectoral Group
As
a professional body and stakeholder in Nigeria’s growth and development
project, we owe our fatherland a duty to continually drive debates and
discourses on issues of national development, especially as they concern
engineering and infrastructural development.
Against
the backdrop of our rebased GDP, there are indications that we yet to achieve a
balanced economy in Nigeria. The set of statistics below show that much:
Nigeria
GDP
- $510b
Unemployment
- 24.1%
Poverty/Malnutrition
- 24.4%
People
Living in Poverty - 46%
How
then do we address the conversion of Nigeria’s new GDP numbers to collateral
economic and social security for much of our larger population?
We
must therefore put it on record that it is the collective responsibility of all
Nigerians, whether in government or in their private capacities to Identify and
encourage indigenous companies such that we:
Create
job opportunities/employments
Build
capacity
Conserve
foreign exchange
Reduce
poverty and as such percentage of people living in poverty
Strive
to attain true sovereignty as a Nation
We
thank you for coming and trust that our message will be given extensive
publicity as usual.
Engr.
Ademola Isaac Olorunfemi, FNSE
President
Nigerian Society of Engineers
