Tuesday, May 12, 2020



As COVID 19 transmission  curve  is seemingly  flattening  and the  ongoing restrictions are easing  out the  economic repositioning begins while governmental  policy  statements  on which  way forward is  been  awaited .  However,  the  following shall be  considered. 

   In Nigeria,  the  capacity  utilisation in  industry  hovers between  30 -43% on the  average with  100% overhead costs.       The  decline in manufacturing sector are both political and economic factors. such as  poor infrastructures and epileptic power supply as key  impediment to industrial growth. 
Electricity - The  manufacturing industry  as a whole operate on  70% of  energy it generate using  generators thereby increasing the cost of manufactured goods. Caused by  ever increasing  petroleum products prices, others are   Infrastructural deficit,  Multiple taxation, smuggling,  Inadequate access to fund both  locally and abroad, High interest lending rate,  Prolong  cargo (beyond  24 hrs )  clearance coupled with weak ports infrastructures and  Insecurity .all  these  dwindled the  fortunes of  manufacturing  sector. 
    Coming to  terms with the  aforementioned  the  current bailout fund by President  Muhammadu  Buhari  and the  CBN is really  very  responsive to the  ailing  economy occasioned by  COVID 19.  Towards strengthening the economy,  a stimulus package of about   3.5trillion  Naira is targeted  towards  Household business,  Manufacturing and  health care providers to build a more resilient and reliant economy in Nigeria. The  bailout must be  judicially applied for strengthening the  manufacturing sector . through    an extant law.  

-- Africa  spend  $35bn yearly importing Food yearly. 
-- Brazil  has  a  robust  earnings from  Agriculture,  $43bn from  sugar,  $33bn from  soya  (Nigeria  budget is $35bn ), $7.5bn from  beef. Brazil  is set to earn  $200bn from  Agriculture in the  next few years.  Brazil  has  a very strong  Auto  industry amongst others. 
 --In  USA, Food  production and  associated  value chain  contributed  a whopping  $1.053trn to USA GDP in 2017. 
-- RUSSIA is world  leader in  wheat.  Currently investing  $70bn to have  a grain production capacity of 150mmt. Russia  is majorly  known for  its  arms sales. 
-- China's population is 1.39bn imported  $41bn worth of Food products  from  USA  in 2017  - Nigeria  can  fill some gap here.
--- Usually, budgets are only  about  10%of a nation's economy,  Nigeria  must  come out  boldly to  increase  especially  the  agricultural  budget provision  if Russia, Brazil and others could do   why not. 
-- Nigeria's sugar  factories at Adamawa, Bacita, Niger state  can produce  more than  enough  both  Portable  and Industrial  Alcohols  Using  the  uncrystalised molten  sugars  (Mollases) a waste product of crystalline sugar . or even  cassava. 
-- The  Comparative advantages of  Coconut in Lagos State   could be  exploited, Lagos has  about  100 km of coconut groves in the coastal  areas.  The  Philippines are majoring in coconut just as crude oil is  to Nigeria. 
-- Rice and  other  Cereals such  as  Soghium, millet  etc  in the  Savanna ecological zones  could  be  exploited as well.
--Same  for  others: Palm oil, Cocoa etc. 
-- Not  forgetting  Dairy  products  from  Cattles. 
--  70%of  wheat (4.9MMT)  is imported  annually while  30% is sourced locally from 8 Northern states of  Kano, Jigawa, Bauchi, Kaduna, Katsina, Kebbi, Sokoto  and  Zamfara. With  enough  mechanical assistance in provision of multi crop thresher - AMAR. There will be large       savings on  foreign exchange. There is  ready  market  for  wheat in  Nigeria  by the  flour millers. 
-- The  Minister of  Trade, investment  in 2017 pronounced  a 3 years  tax  holidays for local startups in  Food Processing and values chain . This  should be  upheld. 

The  current  rate of unemployment in Nigeria is  33% agricultural  production  and  Processing  can fill the gap.  Nigeria  has  comparative  advantage in Food crop  as Cassava, sweet potatoes,  Rice,  other  cereal grains. Cash crops such as  Cocoa,  Palm oil, Groundnut, Legumes (soya,peas ), Sugar cane,   Fruits and vegetables. etc. 
  TECHNOLOGY --  In the allocation of production  facilities  with  optimal strategic determination with resultant  large  scale saving of scarce resources, profit possibility and capacity restrictions  there's need  to  have a paradigm shift from human knowledge to application of the technological Database. It's  high time  we are technologically  compliant in information technology in Agricultural and industry   using  Cloud technological solutions , Artificial Intelligence  (AI), Robotic Process Automation. IoT, Block Chain,  Smart Contracts etc. This  will  restrain  shoddy delivery of  facilities. 
 WAY FORWARD --  The   Organised Private Sector should  support  government  efforts to  revitalise the  sector through Public Private Partnership  in infrastructures deficit. 
-- More  Green bond issuance for adequate Green energy. 
-- Nigeria  can  borrow  from  the economic policies of the  Asian Tigers  ( Hong Kong,  South Korea,  Singapore  and  Taiwan ) to boost  manufacturing.  - their  focal  policy is towards  Agriculture,  Manufacturing and Finance. 
-- The  Security and  Exchange  Commission  (SEC)  - Goverment policy makers should take advantage of enormous opportunities available in the  Capital  markets to  revitalise  moribund  companies in various  states to create  wealth for the citizenry. 

COVID 19 has  reduce the  entire  world to seemingly same  level  where  we all have  to start  again,  it will not be apt for  any  Nation  to have  it's  hand in pocket  expecting  dough from  a big brother. The  time  to  show  our ingenuity is  now  developing our home grown  technology to  solving our food security  issues. 
 We must  unlock the  full potential  in our Agriculture.
*** Agricultural  budget provision  of  10% minimum is possible. 
* Africa  Development  Bank  (AFDB)  must  intervene.

At WUFAS AGR0Net, We are Competent and Reliable Food Processing Technologists into Human Capital Development Consultancy in Food Processing Technology enhancing Global Competitiveness and International Best Practices for the startups, the teeming youthful population and  other Food handlers in  "Ethics of FoodProcessing "  The  Principal Consultant  was at various times :
-Factory Mgr  NIYAMCO  Bacita kw.state. (Nig Yeast  & Alcohol ).
---BrewMaster  North Brewery Ltd Kano. 
-- Production Mgr 7up bottling co plc. 
-- Tech Sales Mgr CCP  Cadbury plc. 
-- GM  Lister flour Mills Ibadan. 
-- Plant Mgr  - Prime Distillery sango-otta. 
-- CEO  WUFASON FOODS (Yoghurt and beverages )
-- President of WUFAS AGR0Net. 
    We are  tested and proofened in Food Security Agenda for the UN 2030. 
Contact us : 08034064270,  08157784430. Email ,

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