Even after 100 years of existence - since its amalgamation in 1914 - Nigeria continues to import products which local manufacturers are capable of producing.
Amazingly, some of these imported products include household items, agricultural products and items that have to do with leather. In most cases, the raw materials to engage in the manufacture of these products successfully are abundantly available in the country.
President of the Association of Micro Entrepreneurs of Nigeria (AMEN), Prince Saviour Iche says it is an insult to Nigeria at this stage of our development that we are still importing products that our local manufacturers are capable of producing.
He believes that with some assistance, Nigerian micro entrepreneurs have the technical know how to do what it takes to beat foreign investors in the manufacture of these goods.
This week’s edition of SuccessDigest focuses on some of these products in question and how to take advantage of the obvious opportunity that their continued importation has created. These currently imported products can be produced locally and can make you rich.
Furniture A professional furniture maker, Mr. Olusesan Samuel is the Director, Fayegbami Furniture Company. He produces Doors, Chairs, Dining Tables, Kitchen Cabinets, Wardrobes and other house decorative items. He says his handiworks are produced like the imported ones.
Why People Still Love To Buy Imported Furniture WorksSamuel says, “I will say Nigerian people don't value Nigerians and invariably, they don't value their home-based handiworks. None of our products here are tagged "Made in Nigeria," except the wire we produce and if you take a look at the wire, it is durable and the best.
"Everything we produce here is okay and can stand the test of time, but people prefer the imported ones - they think ordering for the same product abroad will give them the best quality.
"If the money spent on imported products abroad is available locally, we will produce better furniture products. For instance, most furniture companies working for Federal Government in Aso Rock Villa, make use of our expertise to do all the jobs. Also, those producing doors make use of Nigerians in their production.
"The foreigners there just serve as supervisors. If I may also pin-point, there are lots of imported doors in the market now and their presence has really affected local production. Meanwhile, the imported doors are not strong and they are not durable compared to our locally produced doors”.
Local Versus Imported FurnitureSamuel says, “Not that I'm boasting, my furniture products are strong. Though, the foreign ones may look attractive because of being able to use finishing machines, which might not be available here in Nigeria.
"So, if we have enough resources needed, we can compete with the imported ones. With me, it isn't a problem, as I have finishing machines, so I am wholeheartedly saying, my products are 100 percent stronger and attractive to behold. What we’re just praying for is that we graduate from the era of doing things manually”.
Ban on imported furniture, can local manufacturers cope? Samuel says, “Yes, I am very optimistic that we can meet up with the demand, taking a look at the number of us. As I have said, the Kuramo and Albert furniture Works are done by Nigerians.
"So, with this, I know we will be able to meet up and if there is a ban on the importation of furniture, it will enlarge our scope because we will have it at the back of our mind that everything depends on us”.
Advise For A Prospective Local Manufacturer Of FurnitureSamuel says, “I am, hereby, encouraging such person to continue – ‘don't quit.’’’ Despite the little funding; machinery, just make sure your handiwork is perfect and you are able to market well - everything will come to normal”.
What Government Can Do To Encourage Local Furniture MakersSamuel says, “The first thing Government has to do is to ban the importation of these products. As I have earlier said, the importation of doors has really affected local production.
"It has affected lots of businesses connected with furniture, like sprayers, among others. What we are only left with now is just to fit the imported doors for customers - our economy is at stake here. Look at the imported kitchen cabinets, they are full of particles.
"With the banning, the wealthy ones and governments who are fond of ordering imported furniture will now contract us for work. As regards the machineries, government can provide them with a subsidized rate”.
Succeeding As A Furniture MakerSamuel says, “There is nothing other than to have first hand knowledge by training. You can do this for a number of years. Set up your own furniture business and make sure your handiwork is perfect with a view to convincing your customers.
"Nothing more than to work harder, and also, you need to get your products marketed well.”
Advice To Artisans Who Are Not Good At Their WorkSamuel says, “Fingers are not equal, as poverty also affects them. They just want to start earning money without gaining the full knowledge from their master. So, if there is ban, we can appoint them as join-man. With this they will learn more.
"But for those who want to give out work, such people should try to know the capability of the furniture maker before contracting him. Someone must have introduced him or you go to his workshop to see things for yourself.
"This will prompt you; you won't just pick someone you didn't know before”.
LivestockMr. African Farmer Mogaji, an agricultural consultant, spoke on this issue.
Why is livestock imported?Mogaji says, “One basic reason is that it is not economical to produce here in Nigeria. The cost of production here is high. And one of the reasons is corn. For every 50 kilo bag of livestock feed, 40% to 50% of it consists of maize.
"Though some are substituting now but most of the animal livestock feed in Africa and even all over the world is corn. And the corn production in Nigeria, the yield is very low. We don’t have good seeds. In other countries like Zimbabwe, they have 10 to 14 tonnes from 2 ½ acres of land. We, are getting 4 tonnes to 5 tonnes from the same 2 ½ acres of land.
"And outside the country, some are getting 20 tonnes from this same amount of land. A Nigerian farmer that gets 5 tonnes is probably a researcher or someone that spends so much money on fertilizer, but averagely a farmer gets 1.5 to 2 tonnes per hectare in Nigeria. It is a proven statistic by FAO.
"So, if you compare 2 tonnes to 14 to 20 tonnes some other countries make, there’s a huge difference, considering the cost.
"And the farmers who are producing the corn don’t have Government subsidy to work with nor do they have storage facility. The farmers planting maize have to sell off everything in a year because there is no storage. And the corn they produce is not even enough for livestock farmers.
"The livestock farmers are clamoring to import corn but there is a ban on corn. You can’t import or export corn. So, it is cheaper to produce corn in Ghana and also rear your birds in Ghana and bring them to Nigeria. So, it is factors of production that bring in a challenge.
"Infrastructure is also a major challenge here in Nigeria. If you slaughter, they charge per day or per week in the cooling houses. If you do not sell all your livestock in a week, your bill keeps increasing. So, the farmers are willing but the proper things are not in place.
Mrs. Shola Adenike is another livestock producer. She is into the rearing of chicken and turkey locally and says it is one of the most lucrative businesses in Nigeria if managed properly.
On why livestock is still imported, she says, “Nigerians love to go for the imported frozen foods because they are cheaper, but they do not think about the health hazards. And when you want to go into business you are going there to make money.
"So, for livestock market for example, you would go for wants people are demanding for in high quantity and that is the frozen one”.
Compare Quality of Imported and Locally Produced?Mogaji says, “Of course you can’t compare the taste of a frozen livestock to fresh livestock. When you boil frozen chicken, it doesn’t smell too good. In animal production, it is called unwholesome meat.
"Unwholesome means that, it is not bad or expired but in developed countries, they dry it, mill it and use it for an animal feeds. Human beings don’t consume unwholesome meat in developed countries.
"And what happens is that in developed countries, if a chicken is to expire next year, they release it to the market for people who want to mill it into livestock feed but it is bought and brought to Nigeria. And because it is bought at a ridiculous price over there, it is brought into Nigeria and sold at a cheaper price compared to the locally produced.
"And in an environment where income and economic activities is not stable, people prefer to buy the frozen one. Farmers here produce more towards festive season because they have identified that people buy more of fresh chicken during festive period.
"During Obasanjo’s regime, when frozen livestock was banned more people went into livestock farming. Another challenge we have is that we are not breeding the day-old chicken. Which is the chicken that lays the egg and many people can buy and go and hatch.
"So, cost of feeding is what is chocking up the livestock industry in Nigeria. And it has nothing to do with the livestock farmer but the crop farmer. We do not have high yield of corn. So, it is cheaper to import than to produce.
"Then we do not have enough veterinary services. We used to have a lot of government veterinary services in each local government with equipped and updated veterinarians. But now, the farmer is the vet which should not necessarily be so. The farmer should just know what he can do day to day.
"Now, we just have private practice vets and they are also trying to make maximum profit”.
Adenike says, “Locally produced turkeys or chickens are fresher and they taste better. You can’t even compare the taste of the two. For locally produced, even for those of us that slaughter, we do not add any preservatives. We only skin and refrigerate because we expect to sell within three to four days. If you want to do this, it is better done in small quantity or on demand”.
What can be done?Mogaji says, “A new livestock processing industry just sprang up called Greenlands in Mowe (Lagos-Ibadan express way). They process chicken in world class standards. They have capacity for large production but they are starting small because of the market. "
They are not getting enough broilers. And they do not want to combine production with processing because it might cause distractions.
"But the good thing is that some livestock farmers around them who have one time or the other abandoned their farms are now going back to their farm because of the existence of a processing plant.
"If the price of corn can also be stable, it would make a great difference. The price of corn occasionally moves from like N30 per kilo to N120 per kilo in June.
"And if the person has about 3,500 feeds, that means his budget of N30 per kilo would increase seriously and the final consumer is not ready to take up that extra cost. And so what they do is to reduce their number of birds per production.
"Someone that was doing 10,000 would start doing 4,000 birds. They have the housing and infrastructure in place but they can’t afford the feeding cost.
"So our research institutes need to be equipped and they need to open up the border to bring in quality seeds. The Government is trying now; they give farmers free seeds and fertilizer, but if you give someone garbage and be puts his whole effort in production, the output would still be garbage. Farmers need quality seeds.
"We are not producing up to 30% of the corn we need in Nigeria. We also import soya beans and groundnut”.
Adenike says, “Because of health issues attached to frozen foods, it is better government puts a total ban on [livestock importation]. Government should then empower poultry farmers and also encourage people to join. Whatever is also needed like their feeds should be readily available and at the cheapest possible price”.
FashionOluwabunmi Balogun, Director, Flourish Couture, is a professional Fashion Designer. She says, “I am currently a part-time student of the University of Lagos. After my National Diploma at The Polytechnic, Ibadan, I enrolled at Nikky Africana Institute of Fashion for a period of two years before starting my own fashion outfit where we sew clothes and make accessories like bangles, earrings, bags, etc., as well as organize trainings (short, medium and long term)."
Why People Still Love To Buy Imported ClothesBalogun says, “It is a problem of not believing in our own locally made products. But I can still tell you that so many people still appreciate and patronize our locally made attires”.
Locally Made Versus Imported ClothesBalogun says, “There is no basis for comparison in the sense that I work most of the time according to each customer's specifications; as I always aim at satisfying my customer individually. I rate the quality of my finished products on how satisfied my customers are”.
Clothes Ban And The Challenge To Fill The Vacuum By Local Fashion Industry Balogun says, “Yes we can take up this challenge. There are so many of us in this line of business with quality products to showcase and given that kind of scenario, it will be an opportunity for the indigenous producers to embark more on creative works knowing fully well that we'll be well appreciated indigenously”.
Advice To A Prospective Local Clothes MakerBalogun says, “As the saying goes "Quitters don't win and winners don't quit." In as much as you are sure of your handiwork, you keep on with your good works till it becomes excellent and something they can't do without”.
What Government Can Do To Encourage Local Clothe MakersBalogun says, “All we need from them is that they keep encouraging the local producers and as well as create an enabling environment for us all”.
Succeeding As A Local Clothes MakerBalogun says, “You just have to go for adequate training and constantly practice what you have learnt to bring perfection. Work harder and pray till you get to master the act of perfect sewing".
"After that, make sure to stick to the perfect act – don’t derail because that will really register you in your customers’ mind. The stage is now set for you to employ a workable marketing means to see your products through to the end users”.
Advice To NigeriansNigerians shouldn't give up on this country because an average American will always say ‘God bless America’, so we can as well start saying ‘God bless Nigeria’.
"Furthermore, Nigerians should embrace our locally made products, by doing so, local producers will be encouraged the more to improve our productions.
RiceAccording to the Minister of Agriculture, Akinwunmi Adesina, Nigeria spends one billion naira everyday importing rice – an expenditure pattern Adesina says we cannot sustain.
Why Rice Is Still ImportedObviously, rice is still imported because local production cannot meet Nigeria’s large demand for it. The Federal Office of Statistics estimates that Nigerians consume around 5.5 million tons of rice annually, of which about 3.6 million tons is produced locally, mostly by subsistence farmers. The balance of 1.9 million tons is imported.
Huge Potential In Rice BusinessThe large size of the rice market in
Nigeria as well as the high duties and costs associated with importing the commodity, makes local production of rice a fundamentally attractive industry.
A rice farmer in Badagry, Lagos, Chief Ibrahim Iroko, says he farms rice because of its profitability and because rice is a staple food welcomed in every home. “There is no way you will plant rice and there won't be market for it despite the difficulty in its production”, he says.
How lucrative is rice farming?Iroko says, “Rice farming in particular is what everybody can do to sustain their family. I am a living witness here, in the sense that I am not doing any other job than farming - I am a full time farmer and that is what I am using to cater for my family”.
Information from the Lagos State Commercial Agricultural Development Project [CADP] under the Rice for Jobs programme initiative of Governor Babatunde Fashola, reveals that anyone who wants to farm one hectare of Ofada Rice, for example, would need 80kg of seed, six bags of fertilizer (NPK 20-10-10), 10 litres of herbicides, four litres of pesticides, land preparation - ploughing and harrowing operations, planting and labour for harvesting, fertilizer application, spraying and others.
This would translate to an expenditure of: N24,000, N30,000, N11,000, N4,400, N18,000 (cost for hiring tractors per day), N10,000 (manual planting), N10,000, N4,000, N4,000 and N6,000 (miscellaneous) respectively. With these, you have the total amount of N117,400 - in estimation.
However, with good management practice - weeding and fertilizer application as at when due, you should realize between 2.5 to 3 metric tons of Ofada paddy rice, which must not sell less than N90,000 per ton.
The United Kingdom Department for International Development Programme has revealed the massive potential that exists exporting Ofada to USA and UK. It is estimated that about 340,000 Nigerians live in the UK and the potential demand for Ofada rice in the UK could reach 120 tons per annum. The fast food industries in Nigeria are also hungry for Ofada rice.
Getting Into The Rice BusinessOne can get involved in the rice business as a rice farmer, as a processor of the paddy rice produced by the farmer or even as one who simply packages the finished product for sale in the local market or for the export market. Whichever stage one decides to get involved in, there are lots of money to be made.
Detailed information on how to get successfully involved in the rice business was the lead story in last week’s edition of SuccessDigest. The information is also available in our website which would soon be open to the public.
Local Versus Imported Rice Research has shown that Abakaliki - the capital city of Ebonyi state - has a soil that produces one of the best varieties of local rice in Nigeria. The rice is very rich in protein, carbohydrate, vitamins, minerals, etc. Adesina once pointed out that Abakiliki rice is the best rice in the world as the taste and quality is far better than the one from China.
Ofada rice – a special delicacy for many Nigerians – is also rich in essential food nutrients.
Ban on imported rice, can local manufacturers cope?Iroko advises caution in this regards saying it would not be wise to ban the importation of rice since local production is yet to meet the demand.
He adds that the wise step to take is for government to continue to encourage local farmers with land, fertilizers, irrigation and mills to process paddy rice.
He says that higher tariff should be imposed on rice importation in proportion with the increase in local production until such a time when an outright ban on the importation of the product would not affect the nations’ food security.
Government And Local Rice FarmersLagos State has embarked upon an Intervention Project of Rice Farming. This is one of the cardinal programmes of the state that brought about the Rice for Job Progamme.
The high point of this project is that Lagos State has an automated means of rice production - from the land preparation stage to the processing stage before marketing. In view of this, government has already engaged over 500 youths - recruitment, empowerment and assistance in terms of rice seeds, input, land and planting.
There has also been the provision of a cottage rice processing mill in Itoga, Badagry and residences for the participating youths.
The Nasarawa State Government, last week, commissioned a N100million rice processing plant
The Federal Government has also recently funded the establishment of about 13 mills with combined capacity of 240,000 across the country. The government is willing and capable to assist prospective investors in the area of production and processing of rice.
The Federal Government has also concluded arrangements to roll out a new policy that will ensure that loans are available at single digit interest rate to farmers with effect from this year 2013.
ShoesWhy Shoe Is Still Largely Imported Despite Quality Local ProductionMr. Femi Omole, CEO O'tega Shoes says, “It is just the Nigerian mentality of people preferring anything produced outside the country than what is produced here in Nigeria.
"For example, if I take my shoes to a company to sell, the first question people ask is, 'Is it from US or UK'. Or they are asking you for the label of the shoe. It has even gone beyond product. It is the same way people prefer to send their kids abroad to study.
"And because of Nigerian preference for foreign shoes, most Nigerian manufacturers would produce their shoes and put foreign brand names like 'Calvin Klein' on them. Just because they know that once people see such brand names, they would want to buy."
Can you meet up with the Nigerian market demand should importation of shoes be banned?"Yes, we can because there are a whole lot of people producing shoes here in Nigeria. All we need is encouragement from Nigerians because there is no point producing shoes people would not want to buy. Except someone who has patronized you and can refer people to use because they have seen and tested the quality of your shoes."
Can You Compare Quality?"Yes, we have people producing quality shoes here in Nigeria but we also have several people who are not producing quality shoes. But some of us still prefer to make a name for ourselves so we keep producing quality shoes with the expectation that one day, people would appreciate want we do.
But the price is far different.
"The price of quality shoes goes for about N15,000 to N20,000. But when we produce here in Nigeria, we have to sell a lot cheaper than that so as to encourage people to buy. That is not to say we are not making profit but we are just making our profits very minimally."
What Can Government Do?"If the government bans imported shoes, it would help improve and grow the economy. Though there is a lot of policy from government and some support but most of all these things are just in black and white.
"A lot of things that have been announced as contraband still come into the country on a regular basis. So, for me, the government has put a lot of things in place but they are all on paper."
Is Local Shoe Production Lucrative?"Yes, local shoe production is very lucrative. Even though I have not gotten to where I want to be but I hope to get there someday."
Culled From Successdigest
