rvp2017:
African trade remains centred on the three countries that have an appreciable manufacturing base — South Africa, Kenya and Egypt.

Egypt - the main exporter of consumer goods within COMESA.
Kenya - the second exporter of consumer goods in COMESA & leading in AGOA.
South Africa - SADC and most of Africa - source of consumer goods & even machinery.

Nigeria - is crying within ECOWAS - that small countries like Togo or Benin are out-compete them? And is now afraid to join the big boys in Africa Free Trade Pact. What a shame.

What do they manufacture, dummy.

rvp2017:
African trade remains centred on the three countries that have an appreciable manufacturing base — South Africa, Kenya and Egypt.

Egypt - the main exporter of consumer goods within COMESA.
Kenya - the second exporter of consumer goods in COMESA & leading in AGOA.
South Africa - SADC and most of Africa - source of consumer goods & even machinery.

Nigeria - is crying within ECOWAS - that small countries like Togo or Benin are out-compete them? And is now afraid to join the big boys in Africa Free Trade Pact. What a shame.

You hardly understand anything you read, the cry is that goods are easily imported from the West to Togo and Benin, with the Nigerian market as the target where they are sold at a cheaper rate.

shervydman:

What do they manufacture, dummy.

The guy's brain must be full of waste water.

rvp2017:

Not true - Ramaphosa signed. The so called African giant is afraid of what is being billed as the largest trade agreement after WTO. Please Nigeria wake up from your slumber and self-delusion - and smell the coffee!! What are you afraid of? Benin? Or Togo? Or Ghana or the real big boys like Egypt, South Africa, Kenya and Morroco..you know you fake GDP will be exposed.
https://www.fin24.com/Economy/sa-signs-african-free-trade-agreement-20180321

Kenya, big boy

Daejoyoung:

The guy's brain must be full of waste water.

The guy has serious problem. He has serious comprehension problem, I got this from his post n link.

African trade remains centred on the three countries that have an appreciable manufacturing base — South Africa, Kenya and Egypt.
https://www.nation.co.ke/business/Kenya-second-largest-exporter-of-goods-within-Comesa/996-3419400-13mktt7z/index.html

What that link talked about is "COMESA" (common market for eastern and southern Africa). It's a 2016 article when SA was still part of COMESA and Nigeria is not part of COMESA. so, the article talked about countries in that bloc and not African countries in general.

Una wey dey parole with am dey try, abeg.

Danielnino00:
I can't find any Kenyan company on this list... ...Or is it the usual "cooked data" ?



http://www.africaranking.com/biggest-companies-in-africa/5/

pls don't mind the guy. When you mention 30 nig companies, the only one that comes there is only safaricom

samsobo24:
pls don't mind the guy. When you mention 30 nig companies, the only one that comes there is only safaricom

One would have expected to see at least 3 Kenyan companies on the list given the way they boast.

Daejoyoung:

One would have expected to see at least 3 Kenyan companies on the list given the way they boast.

Dude, a country of your size has only a few companies in the last fifth of the top 25 companies in Africa and you're here boasting? and all except one are banks that became big after merging? Heck if Kenya that's 4-5 times smaller than you would have a couple of banks in the top 25 if we merged our 45 banks to say 18 like you or lesser.

That is exactly what I have been telling them. If you remove their banks - which were forced to merge - after their banking crisis of 2000s - they have nothing. If kenyan banks were to merge -45 - into 18 like Nigeria or 4 like South Africa - they would definitely appear in the list.And still as of 2017 - KCB was just some few dollars short of 4 big Nigeria banks - my prediction is by 2020 - KCB and Equity will have out-paced Nigeria banks - in assets, return on assets and name any metric.

NairobiWalker:


Dude, a country of your size has only a few companies in the last fifth of the top 25 companies in Africa and you're here boasting? and all except one are banks that became big after merging? Heck if Kenya that's 4-5 times smaller than you would have a couple of banks in the top 25 if we merged our 45 banks to say 18 like you or lesser.

My friend outside CRUDE OIL - you're nothing. Kenya lead in manufactured consumer goods in east and part of central africa -all the way down to Zambia, Congo and South Sudan - TZ,UG, BU & Rwanda - you'll find kenya manufactured goods in their shops or supermarkets - we are second in COMESA after Egypt - we are among the top(if not the top) in africa apparel manufacturing (clothes) that export to US of A - we of course kick arse in value-added agricultural products world-wide for a couple of commodities - chiefly TEA (world leading exporter) - flowers (world leading exporter - accounting for 1/4 of all flowers sold in europe) - horticulture - our coffee beans are some highest quality you can get- and of course I think we have overtaken south africa in diary - and soon you won't be importing milk powder from europe or newzeland - but Kenya. Even in nuts - I think we can beat you

shervydman:

The guy has serious problem. He has serious comprehension problem, I got this from his post n link.

What that link talked about is "COMESA" (common market for eastern and southern Africa). It's a 2016 article when SA was still part of COMESA and Nigeria is not part of COMESA. so, the article talked about countries in that bloc and not African countries in general.

Una wey dey parole with am dey try, abeg.

shervydman:

Lol, where did u see 95%?

The statement before ur selected statement says "oil is 35% of Nigeria's GDP" can u explain to rvp2017 what that means?

35% of exports, 90% of revenue

As in ... The remaining 65% of exports only bring in 10% revenue. Because most of it does not exist

Let take Yemi Kale's cooked stats at it HIGHEST. Oil & related as of 2017 Q2 account for 65% of export - and the rest is Sesame, Soya Beens & shrimps.
[img]https://images.dailytrust.com.ng/cms/gall_content/2017/9/2017_9$large_Nigeria_records_rise_in_non-oil_export.jpg[/img]

Also if you use 2013 data here -in 2Q - total value of non-oil export to Ecowas is mere 375m - with 40% of it manufactured - so that is about $150M - or $450M - per annum is the best they could!.
[img]https://www.proshareng.com/userfiles/11(18).jpg[/img]

That is the best the GIANT can do - in manufactured exports - I think kenya export of manufactured table salt alone is $100M plus .

If I am not wrong Nigeria export of manufactured goods will struggle to hit 1B dollars - Kenya is in my guestimate doing around 3B dollars worth of export of manufactured goods - or about half of the 5-6B dollars of total export.

And you now know why Nigeria is scared to sign the Africa Free Trade. Outside CRUDE OIL - there is nothing going on in there.

Muafrika2:

35% of exports, 90% of revenue

As in ... The remaining 65% of exports only bring in 10% revenue. Because most of it does not exist

Daejoyoung:

Try to understand the point. Norway, Sweden, Netherlands would have had even larger gdp's if they had larger populations. The countries you mentioned are all wealthier than lndia on the average but they have lesser GDP to that of lndia.

Kenyans and the field of economics are mutually exclusive. They are like oil and water that never mix. Manufacturing and agriculture have been declining for years. Factories are moving away and people are losing jobs, YET they keep telling the world their economy is growing. I think Kenya is about the only place on earth that happens.

When you have a well-diversified economy - nothing can bring it down. That is how resilient kenyan economy is. Nigerian economy obviously yoyos with global oil price. It such a shame you're still a banana country in 21st century. Kenya will grow at 5-7% for the foreseeable future. I don't see any internal or external risks that can take the us down. Even when the global economy sank - we still grew.

obaaderemi:
Kenyans and the field of economics are mutually exclusive. They are like oil and water that never mix. Manufacturing and agriculture have been declining for years. Factories are moving away and people are losing jobs, YET they keep telling the world their economy is growing. I think Kenya is about the only place on earth that happens.

rvp2017:
That is exactly what I have been telling them. If you remove their banks - which were forced to merge - after their banking crisis of 2000s - they have nothing. If kenyan banks were to merge -45 - into 18 like Nigeria or 4 like South Africa - they would definitely appear in the list.And still as of 2017 - KCB was just some few dollars short of 4 big Nigeria banks - my prediction is by 2020 - KCB and Equity will have out-paced Nigeria banks - in assets, return on assets and name any metric.

I thought we already put this to rest. Gtbank never merged with any bank and it is as big as three of your banks put together. It's not even among the three biggest in Nigeria. Your economy is irrelevant in Africa.

You need to understand how to analyze data - one outlier - is nothing to shout about. Secondly GTBANK is not that bigger than our top banks. Our banks are Africa (actually world) fastest growing.

As of 2017 - KCB was about $9B dollars in assets & Equity at 7B - and was only below 4 nigeria banks - who are howevering around $12B(AccessBank), $13B(GTBank),$14B(FirstBank) and 21$(Zenith).

Now if you check the growth rate of kenya banks - KCB (grew by 25% - Equity 12%) - then without doubt you know in 2018-2020 - Both Equity and KCB(most definitely) - will be better than all Nigeria banks - SAVE for Zenith Bank. The kenya bank growth is solid...amongst the highest global growth rate the last many years.

So KCB by this year if it's grows at 20-25% - will obviously overtake ACESS and GTBANK - and by 2019 - FirstBank - and then 2 more years - and Zenith Bank will be seeing KCB back - and Equity - and lot more like Cooperative Bank of Kenya (who already joined the global 1000 banks). And we won't force any of our 45 banks to merge - like South Africa or Nigeria - because the banking market requires small, medium, and large banks - we are in fact licensing more and more banks.

obaaderemi:
I thought we already put this to rest. Gtbank never merged with any bank and it is as big as three of your banks put together. It's not even among the three biggest in Nigeria. Your economy is irrelevant in Africa.

While still on banking - as far as total country's banking asset - Nigeria (2017) is $90B dollars (N33 trillion)- and kenya is $40 billion (kshs 4 trillion) - and Kenya banks are growing so fast - just where is this $500B gorillla giant? with 200M people and world's 3% of petrodollars

I mean your total banking assets is $90B dollars and ours is $40B dollars. COOKED GDP. Over-cooked GDP will not impress anybody.

South Africa who don't cook their GDP - have about $300B total bank assets. Just one bank STANBANK of South Africa total bank assets is equal to the GIANT's 18-22 BANKS -$86B versus 90B.

Come on NIGERIA. SMELL THE COFFEE!! The evidence is overwhelming and stop throwing around fake fake fake fake GDP of LAGOS and Nigeria.

Kenya ambition is South Africa. We respect South Africans and Egyptians - who are most definitely in the second world. Not lying Nigerians - a primitive third world country that relies on CRUDE OIL. If ETHIOPIA ever agrees to privatize/liberize it's banking sector - boy - we will be aiming at SOUTH AFRICA - not useless NIGERIA. Our banks are just circling Ethiopia ..and have already entered the Nigeria sibling DRC Congo

Daejoyoung:

l wonder how the article supports your assertion above. You generalize too much, give me facts.

I say again we do not have industries in nigeria most of them have packed up or move to other countries . The industries that are left producing at 10% to 20% capacity. I have been to 16 african countries and spent a lot off my time in other countries and i have 5 houses in other african countries so I know what I am talking about. Since independence we have lost 5800 industries and more than 10000 companies .manufacturing sector accounted for not less than five percent of the Gross Domestic Product (GDP). This shrunk to 4.9 percent in 2000. Please read this below.


That many companies have divested in Nigerian economy is no longer news. The disturbing issues are will Nigeria ever absorb the shock of this companies exodus? Are there any deliberate efforts towards making the companies come back?



For the most part of the last 10 years of Nigeria’s democracy, there has been near collapse of infrastructure. The development has been so bad that most businesses groan under intense pain due to overhead cost incurred in providing alternative infrastructure like power. In fact, power has become an albatross to the nation’s manufacturing sector.



For instance, in 1999, manufacturing sector accounted for not less than five percent of the Gross Domestic Product (GDP). This shrunk to 4.9 percent in 2000.



As a result of high cost of production that results from inadequate infrastructure, the manufacturing capacity utilization remains on the down side.



The manufacturing sector is further bogged down by massive decline in capacity utilisation resulting from high exchange rate of the Naira and congestion at the ports. Prior to the financial meltdown, the manufacturing sector had not fared better largely due to lack of infrastructure and high production cost.



President of the National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Simon Okolo said there has not been significant improvement in infrastructure.



According to him, industrial/commercial centres continued to witness heavy traffic, thereby constituting undesirable delays to motorists and other road users while the rail and mass transit schemes did not receive the desired boost necessary to transform the transport sector.



Owing to these, the domestic economy witnessed an unprecedented closure of factories and production plants last year.



Indeed, it was a confirmation that the nation’s domestic economy was sinking. With the weakening economy, more sectors were being affected by the recession and the unemployment profile kept rising.



The president of the Manufacturers Association of Nigeria (MAN), Alhaji Bashir Borodo disclosed to Sunday Trust that absence of conducive manufacturing environment and basic infrastructure would continue to draw back the sector, except something urgent was done to reverse the situation.



According to him, the dream of Nigeria being an exporter of manufactured goods would remain a mirage since Nigeria had thrown away agriculture and blindly embraced oil export.



The recent decision of some companies that had bases in Nigeria to relocate to Ghana was another confirmation that the nation’s industrial sector was still held in hostage.



A survey conducted by the Bank of Ghana recently revealed that Nigeria was one of the 10 sources of Foreign Direct Investment in the former Gold Coast.



Nigeria placed 9th with a contribution of 2.1percent of the GHC1.5billion invested in Ghana in 2007. Nigeria’s pre-eminence in the business environment of Ghana was further re-enforced recently when Ghana’s President, John Atta Mills visited Nigeria’s president in Abuja.



The president who reportedly spearheaded the move of asking Nigerian manufacturing firms to relocate to the former Gold Coast assured that his government would provide a congenial environment for the investors as well as give them some incentives.



According to him, some of these incentives were 15-year tax holidays, free land and other policy initiatives which would drive their businesses.



Last year, Dunlop Nigeria Plc., the only surviving tyre manufacturing company in Nigeria then, shut down its plants and laid off hundreds of its workers and put some on half pay.



Dunlop Nigeria Plc and Michelin had relocated to Ghana. Patterson Zochonis (PZ) is also planning to relocate to Ghana, even as Cadbury Nigeria Plc, Unilever and the International Institute of Tropical Agriculture (IITA) this year, sacked sizeable number of their workers over reported high cost of production, decaying infrastructure as well as the ravaging global economic recession.



Unconfirmed sources also said Guinness Plc was already putting spanners into works to move its business to Ghana, while some companies were said to have expressed readiness to move.



However, External Relations Manager of Dunlop, Sola Adebanjo said his company did not relocate to Ghana. He said the rumoured relocation of the tyre company stemmed from its drive to establish sister branch in the Gold Coast.



He told SundayTrust that the Dunlop version of Nigeria was still intact and operational.But not many Nigerians would buy Adebanjo’s position.



Recently, members of the Lagos State House of Assembly expressed concern over the relocation of manufacturing companies.



This was brought to the attention of the House under Matters of Urgent Public Importance by Sanai Agunbiade, chairman, House Committee on Commerce and Industry.



Agunbiade said manufacturing companies in Nigeria were already folding up, to relocate to Ghana and take advantage of the liberal investment incentives there.



According to him, the implication for the state was high unemployment rate and increase in criminal activities.



While attributing the development to constant power outage, he added that “manufacturers in Nigeria were crying over the power situation in the country which is the real bane of the manufacturing sector.



“I think Lagos State Government should call on the federal government to allow us implement the Independent Power Project (IPP) and distribute power to industrial areas, because Lagos would be most affected by this movement of industries to Ghana.”



Contributing to the debate, Chairman, House Committee on Finance, Adeola Olamilekan said it was high time the federal government decentralised Power Holding Company of Nigeria (PHCN), because huge funds injected into the body had not yielded desired impact.



The president of the Trade Union Congress (TUC) Peter Esiele lamented that the relocation of companies to Ghana was a sad situation that would forever impinge on the nation’s development.



He said the relocation was a manifestation that government had no concrete plans to develop infrastructure with a view to bringing more investments into the country.



He said the business environ-ment in the country was in disarray in the sense that many businesses groaned under intense pain to survive.




According to him, it was only companies that had thrown ethics to the dogs that survived “the harsh business environment”. He said it was amazing that the government that had not deemed it fit to put infrastructure in order imposed heavy taxes on businesses.




The Director General of Nigeria Textile Manufacturers Association, Jaiyeola Peters said the Ghana government’s plan to give the relocating companies 15-year tax holidays was a manifestation that the government had created an enabling environment to receive them.




A manufacturer, Ligali Mohammed lamented that the Ministry of Commerce and Industry had done little or nothing to boost investment drive in the country. ‘’Obviously, infrastructure is zero-some here and hope of reviving same is just not there. The minister keeps promising that infrastructure would be fixed, bail-out funds would be provided to ailing industries like the textiles, but where are the infrastructure and the bail-out funds?




‘’So, if manufacturing companies decide to go to Ghana, no one should apportion blame on them, for they are in business to make profit. And they are entitled to do their business where they consider safe.”




According to Ligali, government had lost its grip on all sectors wondering how government would achieve the so-called vision 2020.




Painting the sordid picture of power in Lagos recently, the chairman of Ikeja Branch of the MAN, Mr Godwin Oteri said, “Private power generation accounted for 30percent of the cost of production and the inadequacy of supply is majorly responsible for 25.24 percent average capacity utilization.” Today, the power situation in the country has further plummeted.


The country’s quest to hit the 6000MW by the end of the year remains a super-miracle to those in the know.




The current situation should therefore, be a litmus test for the federal government. Government needs to evolve economic agenda that would boost the investment climate of the country.




The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi had already offered a way out of the nation’s economic doldrums by advising government to concentrate only on revitalization of the power sector instead of the bogus seven-point agenda.




Whether government would listen to Sanusi’s sermon is a matter many are still waiting to see.

https://www.proshareng.com/news/General/Why-companies-will-continue-to-leave-Nigeria-for-Ghana-/7324
https://www.premiumtimesng.com/business/99757-800-companies-shut-down-in-3-years-says-naccima.html
https://www.premiumtimesng.com/news/headlines/220035-nigerian-manufacturers-lament-272-firms-shut-20-capacity-utilisation-challenges-2016.html
http://nigeriantimes.ng/news/recession-foreign-oil-companies-leave-nigeria-sacks-3000/

Smilling n suffering - Nigeria cannot talk about manufacturing when 1) power supply is so erratic many nigerian think having stable 24-7 power is a miracle - 2) when it takes 30-50 days to clear goods from Nigeria ports - In kenya's Mombasa it takes on average 4 days.

Those two - plus infrastructure deficit (roads, railway) - together with other red-tape (see Ease of Doing business by World Bank) - make Nigeria economy very un-competitive - despite the 200m people and petro-dollars.

Kenya's is for 3rd yr running the most improved in "ease of doing business" - now only the likes of rwanda, mauritus and such beat kenya. We are targetting to be global top 50 in ease of doing business.
https://www.nation.co.ke/business/Property-registration-blots-ease-of-business-ranking/996-4165866-840a2p/index.html

Here is kenya's the many HUDUMA(service) Center - where you can access nearly all gov services in one building - and we have digitize alot of services..all paid through m-pesa (mobile money)

NairobiWalker:


Dude, a country of your size has only a few companies in the last fifth of the top 25 companies in Africa and you're here boasting? and all except one are banks that became big after merging? Heck if Kenya that's 4-5 times smaller than you would have a couple of banks in the top 25 if we merged our 45 banks to say 18 like you or lesser.

First you say Nigeria is nothing and doesn't produce anything compared to Kenya, then when we prove you wrong you try to use our size as an excuse?

Why is Kenya not on the list at all, that's the question.

There are many lists out there - just proof to us that Nigeria education is a little better than we think it is - mediocre - by attempting to make sound arguments here.

For instance if you're truly interested in Africa big companies - Kenya's SAFARICOM - has to be there. Right now I think Safaricom with 12B dollar valuation - show be in top around position 7 in Africa.

http://risktakers.co.ke/2017/08/21/safaricom-rallies-africas-top-10-biggest-companies-league/

Daejoyoung:
Why is Kenya not on the list at all, that's the question.

sufferNsmiling:




I say again we do not have industries in nigeria most of them have packed up or move to other countries . The industries that are left producing at 10% to 20% capacity. I have been to 16 african countries and spent a lot off my time in other countries and i have 5 houses in other african countries so I know what I am talking about. Since independence we have lost 5800 industries and more than 10000 companies .manufacturing sector accounted for not less than five percent of the Gross Domestic Product (GDP). This shrunk to 4.9 percent in 2000. Please read this below.


That many companies have divested in Nigerian economy is no longer news. The disturbing issues are will Nigeria ever absorb the shock of this companies exodus? Are there any deliberate efforts towards making the companies come back?



For the most part of the last 10 years of Nigeria’s democracy, there has been near collapse of infrastructure. The development has been so bad that most businesses groan under intense pain due to overhead cost incurred in providing alternative infrastructure like power. In fact, power has become an albatross to the nation’s manufacturing sector.



For instance, in 1999, manufacturing sector accounted for not less than five percent of the Gross Domestic Product (GDP). This shrunk to 4.9 percent in 2000.



As a result of high cost of production that results from inadequate infrastructure, the manufacturing capacity utilization remains on the down side.



The manufacturing sector is further bogged down by massive decline in capacity utilisation resulting from high exchange rate of the Naira and congestion at the ports. Prior to the financial meltdown, the manufacturing sector had not fared better largely due to lack of infrastructure and high production cost.



President of the National Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Simon Okolo said there has not been significant improvement in infrastructure.



According to him, industrial/commercial centres continued to witness heavy traffic, thereby constituting undesirable delays to motorists and other road users while the rail and mass transit schemes did not receive the desired boost necessary to transform the transport sector.



Owing to these, the domestic economy witnessed an unprecedented closure of factories and production plants last year.



Indeed, it was a confirmation that the nation’s domestic economy was sinking. With the weakening economy, more sectors were being affected by the recession and the unemployment profile kept rising.



The president of the Manufacturers Association of Nigeria (MAN), Alhaji Bashir Borodo disclosed to Sunday Trust that absence of conducive manufacturing environment and basic infrastructure would continue to draw back the sector, except something urgent was done to reverse the situation.



According to him, the dream of Nigeria being an exporter of manufactured goods would remain a mirage since Nigeria had thrown away agriculture and blindly embraced oil export.



The recent decision of some companies that had bases in Nigeria to relocate to Ghana was another confirmation that the nation’s industrial sector was still held in hostage.



A survey conducted by the Bank of Ghana recently revealed that Nigeria was one of the 10 sources of Foreign Direct Investment in the former Gold Coast.



Nigeria placed 9th with a contribution of 2.1percent of the GHC1.5billion invested in Ghana in 2007. Nigeria’s pre-eminence in the business environment of Ghana was further re-enforced recently when Ghana’s President, John Atta Mills visited Nigeria’s president in Abuja.



The president who reportedly spearheaded the move of asking Nigerian manufacturing firms to relocate to the former Gold Coast assured that his government would provide a congenial environment for the investors as well as give them some incentives.



According to him, some of these incentives were 15-year tax holidays, free land and other policy initiatives which would drive their businesses.



Last year, Dunlop Nigeria Plc., the only surviving tyre manufacturing company in Nigeria then, shut down its plants and laid off hundreds of its workers and put some on half pay.



Dunlop Nigeria Plc and Michelin had relocated to Ghana. Patterson Zochonis (PZ) is also planning to relocate to Ghana, even as Cadbury Nigeria Plc, Unilever and the International Institute of Tropical Agriculture (IITA) this year, sacked sizeable number of their workers over reported high cost of production, decaying infrastructure as well as the ravaging global economic recession.



Unconfirmed sources also said Guinness Plc was already putting spanners into works to move its business to Ghana, while some companies were said to have expressed readiness to move.



However, External Relations Manager of Dunlop, Sola Adebanjo said his company did not relocate to Ghana. He said the rumoured relocation of the tyre company stemmed from its drive to establish sister branch in the Gold Coast.



He told SundayTrust that the Dunlop version of Nigeria was still intact and operational.But not many Nigerians would buy Adebanjo’s position.



Recently, members of the Lagos State House of Assembly expressed concern over the relocation of manufacturing companies.



This was brought to the attention of the House under Matters of Urgent Public Importance by Sanai Agunbiade, chairman, House Committee on Commerce and Industry.



Agunbiade said manufacturing companies in Nigeria were already folding up, to relocate to Ghana and take advantage of the liberal investment incentives there.



According to him, the implication for the state was high unemployment rate and increase in criminal activities.



While attributing the development to constant power outage, he added that “manufacturers in Nigeria were crying over the power situation in the country which is the real bane of the manufacturing sector.



“I think Lagos State Government should call on the federal government to allow us implement the Independent Power Project (IPP) and distribute power to industrial areas, because Lagos would be most affected by this movement of industries to Ghana.”



Contributing to the debate, Chairman, House Committee on Finance, Adeola Olamilekan said it was high time the federal government decentralised Power Holding Company of Nigeria (PHCN), because huge funds injected into the body had not yielded desired impact.



The president of the Trade Union Congress (TUC) Peter Esiele lamented that the relocation of companies to Ghana was a sad situation that would forever impinge on the nation’s development.



He said the relocation was a manifestation that government had no concrete plans to develop infrastructure with a view to bringing more investments into the country.



He said the business environ-ment in the country was in disarray in the sense that many businesses groaned under intense pain to survive.




According to him, it was only companies that had thrown ethics to the dogs that survived “the harsh business environment”. He said it was amazing that the government that had not deemed it fit to put infrastructure in order imposed heavy taxes on businesses.




The Director General of Nigeria Textile Manufacturers Association, Jaiyeola Peters said the Ghana government’s plan to give the relocating companies 15-year tax holidays was a manifestation that the government had created an enabling environment to receive them.




A manufacturer, Ligali Mohammed lamented that the Ministry of Commerce and Industry had done little or nothing to boost investment drive in the country. ‘’Obviously, infrastructure is zero-some here and hope of reviving same is just not there. The minister keeps promising that infrastructure would be fixed, bail-out funds would be provided to ailing industries like the textiles, but where are the infrastructure and the bail-out funds?




‘’So, if manufacturing companies decide to go to Ghana, no one should apportion blame on them, for they are in business to make profit. And they are entitled to do their business where they consider safe.”




According to Ligali, government had lost its grip on all sectors wondering how government would achieve the so-called vision 2020.




Painting the sordid picture of power in Lagos recently, the chairman of Ikeja Branch of the MAN, Mr Godwin Oteri said, “Private power generation accounted for 30percent of the cost of production and the inadequacy of supply is majorly responsible for 25.24 percent average capacity utilization.” Today, the power situation in the country has further plummeted.


The country’s quest to hit the 6000MW by the end of the year remains a super-miracle to those in the know.




The current situation should therefore, be a litmus test for the federal government. Government needs to evolve economic agenda that would boost the investment climate of the country.




The Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi had already offered a way out of the nation’s economic doldrums by advising government to concentrate only on revitalization of the power sector instead of the bogus seven-point agenda.




Whether government would listen to Sanusi’s sermon is a matter many are still waiting to see.

https://www.proshareng.com/news/General/Why-companies-will-continue-to-leave-Nigeria-for-Ghana-/7324
https://www.premiumtimesng.com/business/99757-800-companies-shut-down-in-3-years-says-naccima.html
https://www.premiumtimesng.com/news/headlines/220035-nigerian-manufacturers-lament-272-firms-shut-20-capacity-utilisation-challenges-2016.html
http://nigeriantimes.ng/news/recession-foreign-oil-companies-leave-nigeria-sacks-3000/

Yeah there are lots of obstacles and policies hindering the manufacturing sector, but there's also resilience on the part of the citizens.




As the colonial era in Nigeria was winding down in the late 1950s, there was a very measurable level of optimism within the country. The oil industry – the country’s present mainstay – was in its infancy and the Nigerian economy was mainly industrial and agrarian. There were demonstrable hopes of a major African industrial hub emerging out of Nigeria; which everyone believed was inches away from becoming an industrialised nation. Many of the reasons for positivity were rooted in a small town in South-East Nigeria known as Nnewi.

In Nnewi, young entrepreneurs and artisans with limited formal education, through shared wit, creativity and innovation, had started an amazing story of manufacturing and industrialisation in Nigeria. It was hoped that Nnewi could become akin to a present-day South-East Asian powerhouse.

In the 1950s and then the 1960s, Nnewi made huge strides in manufacturing, especially metallurgy. It was a trade that was to support the Biafran war that erupted in 1967, seven years after Nigeria achieved independence.

Sophisticated firearms and ammunition were locally made in the towns of Nnewi and Awka, to the chagrin of many observers. Fast-forward to 2016, and Nnewi has survived. The town now houses Nigeria’s first indigenous automobile manufacturing plant, owned by the Innoson Group. It has the largest automobile spare parts market in West Africa and
the largest motorbike assembly
hub in Nigeria, among numerous other notable manufacturing concerns.

The story of Nnewi – like other manufacturing hubs in Nigeria, such as the Lagos-Ogun manufacturing corridor and Aba – is an inspirational tale of survival in the face of huge odds.



The problem

Nigeria’s new government, led by President Muhammadu Buhari, who was sworn in in May 2016, is currently facing countless challenges (many inherited), made worse by the impact of falling oil prices – the very commodity that Nigeria has relied on for too long. “Economic diversification” is now a tired phrase in Nigeria due to the emphasis the government lays on what is believed to be a panacea for Nigeria’s economic crisis. Oil and gas will now be replaced by manufacturing and agribusiness; according to the government’s wish list.

But this diversification dream has been historically aborted by Nigeria’s chronic power generation crises and many other problems that bedevil manufacturing.

Nigeria has never attained sufficiency in generated power, despite her huge energy resource endowments. The direct impact has always been an unhealthy competition between locally manufactured goods and imported goods (for companies that are tenacious enough to produce amidst the crises).

Dr Joseph Odumodu, the former Director General of the Standards Organisation of Nigeria (SON) – the agency that regulates the quality of manufactured goods – says “the enormity of the crisis with manufacturing in Nigeria is underreported.

“When I was at SON, we saw the exit of many manufacturers from Nigeria, simply because they could not compete; Tata, Michelin, and Dunlop all left because the market was flooded with substandard, cheap products that they could not compete with.”

In the literature and reports on the manufacturing crisis in Africa’s largest economy, insufficient power supply has often been named as the culprit. While this is correct, there are many other factors that are often ignored. The quality of the products brought into Nigeria from regions such as South-East Asia is a major problem for manufacturing in Nigeria.

Because of the low income of many Nigerians, substandard and cheap products are traditionally more appealing to the consumer. Dr Odumodu says: “When I resumed as the director-general in 2011, we conducted a study that revealed that about 80% of the products in the Nigeria market were substandard.

“But we also realised that
SON could only bark but couldn’t bite; because there are limited means for prosecuting offenders and we lacked special courts to attend to crimes related to substandard products. As long we have these imported substandard goods in the market, our local manufacturing will perennially suffer,” he concluded.

The implications of this are well illustrated by the ordeals of Emenike Chika, chief executive of the Kotec Group of Companies. In 2010, Emenike was a dealer in machineries, hardware and spare parts. These products were facing unhealthy competition from cheaper Chinese products. Today he manufactures noodles and
has totally abandoned his former trade.

But this move has not really improved his lot, he says: “We abandoned the old business of spares dealership to embrace noodles production. But even here, our relationship with the government has not changed.

“We provide amenities and infrastructures by ourselves. I use 3,500 litres of diesel daily to power a 20KVA generator, and had to upgrade the very road that leads to the factory by myself.”

His tone depicts an entrepreneur who has learnt how to survive with little or no expectation of support from government. “My fate is the fate of many other people who are manufacturing in this region,” he adds.





The opportunity

Nigeria’s huge population has made it one of the most attractive markets in Africa. With over 180 million people (2015) and growth projections for the population to reach 240 million by 2050 (according to the UN), the
demand for manufactured goods in Nigeria is expected to rise exponentially.

The last 17 years (after it returned from military rule to democracy) has also seen mild improvements in the economic situation of Nigeria (until the recent fall in commodity prices). This has had a knock-on effect on consumption patterns, and consumers’ confidence and purchasing power. The present size of the market and the growth capacity is evident from the performance of the consumer goods retail sector in Nigeria.

Nigeria’s economy has been forecast as capable of attaining a value of $1trn by 2025 (according to reports by Renaissance Capital and Frontier Advisory Ltd), from its present level of $560bn. To achieve this will definitely require a robust manufacturing sector and a detailed programme for industrialisation.

The administration of former president GoodLuck Jonathan had an industrialisation template for the country (the Nigeria Industrial Revolution Plan – NIRP), which the Buhari administration has reportedly adopted.

In addition, a favourable demographics, with about 43% of the population being young people, means that the manpower and human resources required to support a robust and rapidly growing manufacturing sector are already available.

Nigeria has some of the best and strongest financial institutions in Africa, with well-capitalised banks that have a huge presence all over the continent and are continuously well rated by global financial rating institutions. Despite this, attaining the dream of being Africa’s leading manufacturing hub will require even more patronage from local financial institutions in terms of favourable lending terms and interest rates.

The renowned professor of production management, Prof. Banjoko, says: “One of the major issues bedevilling the manufacturing sector in Nigeria is bad policy. The business environment is simply unfriendly. Manufacturers are left to fend for themselves on many issues and in the provision of social amenities that should be easily created by government. The notoriously bad policy here being multiple taxation.”





[b]The future

The future of Nigeria may well depend on the steps the country takes to salvage its severely ailing manufacturing sector. Industries in areas such as Nnewi have previously made great strides in spite of government’s failure to support them and the numerous challenges that limit their growth.

Many thought it was impossible to build an automobile manufacturing plant in Nigeria. But in 2010, the Innoson Group, led by industrialist Innocent Chukwuma, defied received wisdom when he floated Nigeria’s first car manufacturing plant in Nnewi. In close proximity to this plant is the Cutix group – a large manufacturer of electrical cables – as well as the Chicason group, with diverse interests in manufacturing and construction.

These organisations are representative of what could be achieved should the Nigerian government move to assist in overcoming many of the problems of manufacturers, such as power insufficiency, an overvalued Naira currency, weak regulations pertaining to the import of substandard products, and poor infrastructure development[/b]

rvp2017:
Because most of Nigeria data is OBVIOUSLY over-cooked and unreliable (and that unfortunately is what everyone -wb/imf/cia- has to relie on); we have to find secondary sources of data to compare. One good example we can use is AGOA. Both Kenya and Nigeria are allowed duty free export to US market for many products (300 plus) under AGOA (Africa Growth and Opportuntiy Act) and it's good way to compare Kenya and Nigeria manufacturing. Remove Oil from Nigeria's AGOA trade - and there is nothing.

Remove Angola, Gabon and Nigeria Oil from AGOA - and Kenya leads sub-saharan Africa in exporting MANUFACTURED GOODS to the US of A under AGOA- never mind Nigeria is on the Atlantic and is nearer US of A.

Kenya's apparel export under AGOA is huge - so much the jeans you buy in NewYork is probably made in kenya. We are not talking chicken shiet siju Abu or ODU or whatever "manufacturing" - that re-packages chinese finished products in Lagos and distribute them. We are talking Kenyans making the Calvin Klein you will spend a fortune to buy in New york or California.

This is why your shie.t "manufacturers" cannot countenance free africa trade ---and are crying like small babies - yet officially they claim to be giant. Open up your market - and kenyan goods will flood your supermarket (the few you've got - that aren't already RSA dominated) - way more quality for way cheaper prices.

Have you heard of Akwa ibom syringe manufacturing plant,that's how irrelevant Kenya is to Nigeria, especially in the manufacturing sector

Why should I hear about vision or dreams of nigeria? Make it real. Kenya is exporting manufactured goods to US - not nigeria. You're naira seem worthless to me.And the way you tried to milk MTN and the forex controls - why would a foreign investors - waste his money in Nigeria - you make be stuck with worthless naira - unable to convert them to USD.

samsobo24:
Have you heard of Akwa ibom syringe manufacturing plant,that's how irrelevant Kenya is to Nigeria, especially in the manufacturing sector

I actually checked the syring manufacturing - it's worth 25M dollars - what hell are you talking about here idiot.We are talking a billion dollar and above. Anything below that - please don't bring it to an INTERNATIONAL THREAD like this. Keep it in the low ambition threads that litter this forum.

rvp2017:
You need to understand how to analyze data - one outlier - is nothing to shout about. Secondly GTBANK is not that bigger than our top banks. Our banks are Africa (actually world) fastest growing.

As of 2017 - KCB was about $9B dollars in assets & Equity at 7B - and was only below 4 nigeria banks - who are howevering around $12B(AccessBank), $13B(GTBank),$14B(FirstBank) and 21$(Zenith).

Now if you check the growth rate of kenya banks - KCB (grew by 25% - Equity 12%) - then without doubt you know in 2018-2020 - Both Equity and KCB(most definitely) - will be better than all Nigeria banks - SAVE for Zenith Bank. The kenya bank growth is solid...amongst the highest global growth rate the last many years.

So KCB by this year if it's grows at 20-25% - will obviously overtake ACESS and GTBANK - and by 2019 - FirstBank - and then 2 more years - and Zenith Bank will be seeing KCB back - and Equity - and lot more like Cooperative Bank of Kenya (who already joined the global 1000 banks). And we won't force any of our 45 banks to merge - like South Africa or Nigeria - because the banking market requires small, medium, and large banks - we are in fact licensing more and more banks.

All this long story to what end?Gtb never merged and it's still bigger than at least 3 of your biggest banks put together. I like the way you Kenyattas run around when you are cornered like the mice you are. Even Tanzanian banks are eating your dinner.

rvp2017:
Why should I hear about vision or dreams of nigeria? Make it real. Kenya is exporting manufactured goods to US - not nigeria. You're naira seem worthless to me.And the way you tried to milk MTN and the forex controls - why would a foreign investors - waste his money in Nigeria - you make be stuck with worthless naira - unable to convert them to USD.

you are deficient of being able to digest opinions before analysing.
The Akwa ibom syringe manufacturing plant is the second and largest plant in Africa

I know Nigeria who cannot defend the cook GDP are desperately trying to ran to their "big" companies. But that is no refuge man.

Let compare the cap of Nigeria Stock Exchange (NSE) and Nairobi Stock exchange (NSE). The giant versus the dwart.

NSE -the giant - cap seem to hover around N14-16 trillion - just around $40B dollars.
NEE - the dwarf - cap seem to hover around Kshs 2.8-3 trillion - just around $30 dollars.

In short Kenya which is not a "500B dollar with 200M people with lots of petrol dollars" Nairobi Stock Exchange total caps as of today is $30B dollar - with Nigeria's just at $40B dollars. SEE COOKED GDP

Safaricom at about $12B dollars beats or equals Dangote Cement (which account for 20% plus of Nigeria Stock Exchange).

The search for the giant continues....

rvp2017:
I actually checked the syring manufacturing - it's worth 25M dollars - what hell are you talking about here idiot.We are talking a billion dollar and above. Anything below that - please don't bring it to an INTERNATIONAL THREAD like this. Keep it in the low ambition threads that litter this forum.

and your bigotry IQ told you that it isn't the second largest in Africa

You know that is not true - the difference btw GT - and KCB - is mere 3-4B dollars - and at KCB growth rate of 25% - and GTBANK zero (if not worse - I know in Kenya they are burning money like all Nigeria banks in Kenya- ECOBANK etc) - then by time they do calculation for this year - maybe KCB bank will be bigger than GTB.

Let stick to FACTS. It should NOT be hard to defend 500B dollar economy. . Call YEMI KALE to help you dude - you're stats GURU.

obaaderemi:
All this long story to what end?Gtb never merged and it's still bigger than at least 3 of your biggest banks put together. I like the way you Kenyattas run around when you are cornered like the mice you are. Even Tanzanian banks are eating your dinner.

In our village - we have Africa if not the world biggest manufacture of fly fishing hooks - my friend actually owns the company. How is making syringes relevant to the debate here?

samsobo24:
and your bigotry IQ told you that it isn't the second largest in Africa