How would you describe the level of competitiveness within the manufacturing industry in Nigeria?
Competition is a natural process in the world today. Our organisation is not an exception. Within our local environment, although there is competition, we have made our landmark as far as our products are
concerned. On detergent, competition is mild because we are one of the first producers of bar detergent, and sachet detergent all aimed at meeting the needs and aspirations of our consumers. This is because we are aware of the low purchasing power in Nigeria.
On the imported items, there is a lot of competition. But we as local manufacturers have the advantage of tariffs, and World Trade Regulations on our side. So we believe that with consistent hard work, we will achieve greater heights.
You said that there is not so much competition within the Nigerian market, how would you then describe the investment climate in your sector?
Well, as you are aware, it has not been easy for the manufacturing sector in Nigeria due to government instability and continuous political changes. But with the new political dispensation, we hope it will be more stable and industries will begin to enjoy the fruits of their investment.
To what extent do you feel the impact of this new dispensation?
It is too early because the new government came half way between the budget year and the change from the military so it is still trying to settle down. It is a new democracy only a few months old. The budget is not yet out, but we hope that when it is finally approved, the manufacturing sector will have a sense of direction that will give enough hope to the industries. We hope the policies will be more stable and controlled, which will create favourable competitive climate for local manufacturers.
The proposed fiscal policy for 2000 suggests a revision of tariffs on imported goods. How do you perceive those measures as far as you are concerned?
Those measures concern reduction of some tariffs on raw materials and increase on some finished goods. Our concern is the creation of a favourable atmosphere for a fair competition. With such a climate, Nigeria will grow from a consumer nation to a producer. The inherent benefit in this situation is an advancement in the standard of living of the populace. If there is an increase in tariff on finished imported goods, it will be an added advantage to the local manufacturers. It will also be a challenge to local manufacturers to improve their competitive edge. Again, there is the need to subsidise the agricultural sector to make Nigeria self-sufficient in food production. As such with revision of the tariffs,
such sectors will benefit immensely.
You are talking about the agro industry which until recently was not a government priority. To your opinion, what is the potential of the agro industry in Nigeria?
A5. It may not be completely true to say that agro industry was not government priority until recently. Government has made various pronouncements on the need to give agriculture a primary attention. We may only say that the implementation of such policies leaves much to be desired. The potential of the agro business is great and with a good policy, a good sense of direction and with mechanised technology, a lot will be achieved.
With the recent visit of the President to India and with a bilateral agreement for cooperation in agriculture, Nigeria will record greater successes. I think Nigeria stands a good chance to be self-sufficient and
to export its agro based products.
From a single manufacturing company, you became a diversified conglomerate with 1500 employees. Could you provide our readers with some general figure showing the extent of your business?
Our business is manufacturing of carpets, biscuits, wafers, cornflakes, soaps, detergent and confectioneries. In addition, we have a packaging company which is an ancillary to our operations. The packaging company also provides packing materials to other companies outside Nasco. Our group turnover for 1999 was approximately N2.7 billion.
On the carpet side, Nasco is the only company in Nigeria producing needle felt carpet which is a market leader. On the foods and confectioneries, Nasco is also a market leader. The quality of our products is very high and this gives us a wide market share. On the detergent side, we are one of the major players among the 3 giants. In the petroleum jelly side, again we are one of the major players after having come a long way after three to four years. We foresee a bright future in cosmetic production. We combine both quality and good price.
Again, in Nigeria, we are the only fully integrated company depending on 95% of local raw materials. We acquired a company in Kaduna, Kaduna Polyfibre which buys its raw materials, polypropylene chips, from Eleme Petrochemical Industry in Nigeria. We convert the raw materials into fibres for our use and we supply other companies as well. We are a fully integrated company and that means a lot.
Being fully integrated also means that you are widely spread throughout the country in terms of logistic infrastructure. How is your company organised to provide your clients with the best quality of delivery service?
Basically, we have a marketing company. All our consumer goods are sold through this company. We have depots in all major cities in Nigeria. The marketing structure has been existing since the last ten years. But we have been marketing in Nigeria for 34 years. We had been marketing our
jute bags initially through marketing board, which was a government agency. So we have warehouses in all farming areas distributing jute bags and later, we added depots to represent our products and we reach hundreds of distributors and retailers from those depots. Our distributors are serviced from the depots, while our retailers are serviced directly if distributors do not service them. So, we cover Nigeria extensively.
You have been involved in real estate for a few years. You are today working on a major project called NASCO TOWN. Could you enlighten our readers on this project?
Well, we felt there was the need for a new idea of housing in the commercial centres of the country. We felt Nigeria had come of age where it needed a better structure, a better organised town planning. So the dream of our founder is that the time had come for Nigeria and Africa to come of age in terms of infrastructure presentation, standard of living of the people and affordable houses for all. He has been exploring this possibility for many years, and he is very confident about the project. | He feels the same project will be duplicated throughout Nigeria. Once the project takes off, other states will look into it and it will set the precedence for better-organised living in Nigeria as a whole. So this is the thrust of the project. Our founder is not only profit motivated, he believes in perfection, improvement and contribution in addition to profitability. We hope the project will succeed with all our hearts, and we hope too it will set a good precedence for better planning. Already, from the time the concept was initiated, there have been a lot of similar projects. Now everywhere you go, everybody is developing some kind of housing structure, which is good omen for the nation.
The area covered by the project is about three million square meters. The project will be made up of a well-planned residential and commercial areas of about two million square metres. The remaining area will be used for accessories and service facilities to create maximum comfort for occupants.
Taking into account the fact that NASCO TOWN is your main long-term project, will you keep diversifying your products and services in your other core business?
There are two separate types of activities. Our founder has provision for developing property, especially to provide affordable good quality housing to the populace generally. But, our core business, which has been in operation for the last 30 years is our manufacturing activities and we definitely want to consolidate and expand in those sectors.
Do you have any examples of particular projects?
Well, the dream of our founder over the last 30 years has been to expand into those operations that are linked to our businesses. For example when we started the detergent factory, we were only manufacturing detergent, we then expanded into the soap factory, after that we expanded
into cosmetics, shampoos, petroleum jelly etc. On the biscuits side we started only with biscuits. We then went into wafers and then into cornflakes and we hope to go into more packaged foods. Gradually, we will expand into our linked fields.
Some parastatals, such as NAFCON in the fertilizer sector, are about to be privatised. Would you be interested in creating partnership with such companies?
Again, part of our philosophy is to handle only those things which we can handle ourselves confidently. We don't want to expand into something and find that we are over extended. Most companies have now cut down to their core businesses and we think this is a wise decision. We are not
foreclosing the possibilities of our expanding into other fields with time, but for now we will concentrate on our core area of businesses.
Do you have any specific plans on a regional or international level?
At the moment, we feel concentration should be in Nigeria as far as Nasco Nigeria is concern. We are seriously exploring the great market potential of Nigeria. As time goes on, we hope to consider regional operations. But NASCO International already has operations in other countries and those will expand independently, depending on the circumstances in those countries.
Our readers are constantly in search of new business opportunities. Do you have any areas where you would be interested in attracting partners, contacts or investors?
Investors are being invited to Nigeria and we would like to play a major role in enhancing investment in Nigeria because we believe the potential is there. No investor will fail in his investment in Nigeria in
the future because the population is there. Nigeria is a force to be reckoned with politically and economically. And to show this potential, goods manufactured in Nigeria find their ways to the neighbouring countries like Zambia, Ghana, Niger, Benin Republic, Cameroun, Togo, Abidjan, Chad and so on.
If the nation gets its acts right, our development policy will go a long way in improving the lots of the people and a lot of things. So many people (outside Nigeria) depend on the trading activities in Nigeria. This also goes to prove the economic potential of Nigeria. I think that with support of all well-wishers of Nigeria, the country will succeed. It is on the right tract. It has highly educated skilled labour that is well
exposed internationally. It has a lot of good-will in West African sub-region and beyond. Nigeria has the resources and the capabilities. And investors are being encouraged to explore this endowment. So the next step is how to consolidate it. I believe that if democracy is handled carefully, the country will be better for it. We hope and pray that the government will succeed and take the country to greater heights. I tell you no investor will regret investing in Nigeria.
Areas I feel investors can explore are catering services, tourism, support services to all the industries. Support services such as packaging (printing and non-printing packages). Today manufacturers are thirsty for initiatives in support services. The next fertile place to invest is in electricity supply. It is only in Jos today that we have NESCO, a private organisation that generates electricity. I think it is a promising market and any investor will not regret his investment provided he does it right. Any body who is prepared to stay and take Nigeria as his major location in West Africa, and invest wisely, his investment will yield results for generations to come. I see all the present obstacles becoming less and
less.
Again, if government gets it right on the import of finished goods that are already locally available, I think the rest will be easy. For example, if we take an imported cornflakes and our local cornflakes the difference in the prices is 200%. So, today the discussion with the WTO should be, to be fair with emerging nations.
It should be a gradual process. There should be room for education, for the people to be prepared to be able to use their resources effectively and efficiently instead of destroying their resources, through unregulated trade practices.
Importation of finished goods should meet the local manufacturers half-way to allow those who are afloat to remain afloat and at the same time to compete fairly on a level ground. The WTO should be fair in its approach to developing countries. I believe Nigeria is one of the major nations in West Africa, that plays catalyst. Nigeria is a good investment ground.
Since you started operations in Nigeria what would you say has been your most challenging and rewarding experience?
Personally, the human side. To see the commitment to the well being of so many people. We feel NASCO should continue to be conscientious about the society in which it operates,. to be fair to shareholders, to be fair to its employees, to be fair to the community that it operates within and
to contribute its quota to the human race. This is our main focus. The shareholders and I will not like to be associated with a business that is only profit motivated because there is no pleasure in it. It is very easy, anybody can do it. But to keep in mind that the well being of everybody is part of the profit. Everybody benefits and you benefit. That is a more satisfying business investment as far as we are concern. |
