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

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
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:

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 

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