The Manufacturing Association of Nigeria (MAN) and the Raw Materials Research And Development Council (RMRDC) have commenced discussions for collaboration to develop local raw materials for chemicals and pharmaceutical industries in Nigeria.
The Director-General, MAN, Mr Segun Ajayi -Kadir said this in Lagos on Tuesday at a Sectoral Dialogue Session organised by the Chemical And Pharmaceutical Sectoral Group of MAN
The theme of
the dialogue is : The Future of Chemical And Pharmaceutical Industry In
Nigeria – The Role of RMRDC.
Ajayi-Kadir said that the collaboration would help the
manufacturers in improving their raw material sourcing based on the
information and research findings.
He lauded RMRDC’s keen interest in ensuring the
sustainability of Nigeria industries through continuous and persistent
research.
The director-general said that the RMRDC research was
geared towards the localisation of some essential material needed for
the survival of local industries.
“The topic of this dialogue is apt and timely,
considering the effort of government to encourage backward integration.
In MAN, we call it resource based industrialisation,” he said.
In his lecture, Director-General, RMRDC, Prof.Ibrahim
Doko, said that it was high time for investors in the manufacturing
sector to partner with the council for the supply of competitive raw
materials.
Doko, represented by Dr Mohammed Buga, Executive
Director, Mineral Materials Development Department, RMRDC stated that
the giant strides recorded by RMRDC has demonstrated its resolved to
actualise the mandate of local sourcing of raw materials for
industrialisation of the country.
He noted that the discussion with the chemical and
pharmaceutical manufacturers was necessitated by issues of disruption in
global supply chain occasioned by COVID-19, Ukraine/Russia War,
competitiveness of the industry.
The director-general listed other issues that occasioned
the dialogue to include Presidential Executive Order five for
industries to source their content locally, scarcity of foreign exchange
and the role of raw material origin for the Africa Continental Free
Trade Area (AfCFTA).
“The time to source for local material can never be as compelling as now.
“With local development of raw materials, importation
will reduce, there will be less pressure on foreign exchange, increase
profit margin for manufacturers , employment generation and improved
overall condition of the economy.
“It is our hope that investors in the manufacturing
sector would partner with the council for uptake of the developed
technologies for sustainable supply of competitive raw materials for the
sector ,” he said.
According to him, RMRDC developed the National strategy
for competitiveness in raw materials and products development in Nigeria
as part of efforts to make industries more competitive.
He noted that the strategy was geared towards gradual
reduction of imported raw materials and products that could be produced
in the country in the short, medium and long terms.
He stated that a committee which include MAN, RMRDC and
other stakeholders would be established to facilitate the
commercialisation of the raw materials and bridge the gap between
research, result and the market.
The director-general said the committee would address
the issues around commercialisation, which include finance, regulatory
issues, incentives of manufacturers, among others.
In his remark, the Chairman, Chemical And Pharmaceutical
Sectoral Group of MAN, Mr Rotimi Aluko, commended the contribution of
RMRDC to national development through publicity of research findings and
other information relevant to local sourcing of raw materials for
development of industries.
Aluko said, the collaboration between the association
and the council was geared towards exposing manufacturers, particularly
in the chemical and pharmaceutical sector to some research findings by
the council to further boost manufacturers business operations.
“We are mindful of the fact that sourcing forex for
importation of raw materials have become like a nightmare for
manufacturers in recent times .
“Hence, the need for the consideration of local sourcing
of raw materials through the backward integration became a necessity,”
he said.
According to him, if certain things, right people and
enabling environment were put together, things would work favourably for
the manufacturers and their business operations would boost.
Aluko noted that Nigerian manufacturers might not be
able to compete with their counterpart with the AFCTA, following the
overloaded cost on them.
“Republic of Benin have set up an Export Processing Zone
at the border which is a clear declaration of intention to utilise the
privilege of the trade agreement to infiltrate Nigeria market massively
with their products.
“It’s scary, but if we are able to have local material
support and hopefully at a cheaper rate and if energy, several other
cost and multiple taxation does not negate the impact, then
manufacturers can thrive, “he said.
Participants at the dialogue session
demanded that the RMRDC must ensure that raw materials are readily
available at an affordable rate to help manufacturers remain in
business.
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