BusinessDay... the voice of business: Anthony Olekibe: Spends N50m yearly on power

Anthony Olekibe: Spends N50m yearly on power
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NGOZI UCHE on 23 March, 2008 12:00:00
 
Background
I am a man of very humble beginning. I started business with shoe
manufacturing.  Our shoes were unique in terms of quality and enjoyed wide
acceptance in the South Eastern states of Nigeria and we participated in trade
fairs.
I was doing it in partnership with the Italians who brought in their technology
because then, Italian shoes were in vogue.   From there, Valuembra was
established as a subsidiary. However, I later decided to concentrate on
Valuembra; the shoes business is still on, but we have limited ourselves  to
shoe soles.
About valuembra
Actually, Valuembra was incorporated four years ago.
Our mission statement is to produce agro-allied products using latest
technologies, investing in our people and the environment and also providing
attractive returns to all stakeholders, and to be a responsible corporate
citizen.  We have our brands of pasta popularly called marcaronni, semolina and
flour.  We hope to go into more products in the future by the  grace of God.
Staff
We have over 120 staff working here in two shifts.
This, I can tell you, is the motive behind establishing this company; to help
in solving the problem of unemployment being faced in the country.  Our  people
are suffering due to lack of jobs.
Raw materials
Our main raw material is wheat.  We import high quality wheat from Europe.  The
one we grow in Nigeria is not as good to give us what we want.  The quality of
the wheat we use is reflected in the quality of our products.  However, we mix a
percentage of cassava flour as directed by the Federal government.
Challenge
But we have serious constraints and challenges which affect the prospects. 
First and foremost, we do not have a good enabling environment that encourages
manufacturing.  When an indigenous factory of this nature is to be established,
what everybody would expect is for the government to give support and succour by
providing necessary infrastructure.
Power outage is our greatest challenge.  When I say outage, it is an
under-statement because, we suffer absence of power for over a week running.  We
would have to generate our own power to keep the factory working.  You know what
it means to produce with generator.
Our bill on diesel within a year is over N50 million.  And the question is,
'how do we break Even.'  But we are in, already, and there is no going back.  It
has not been a bed of roses for us; ours' is still at a toothing stage as we
have not even started making profit.
Funding
Access to credit is not easy.  The banks' interest rate is very high for you to
produce and make profit.  That is why we are appealing to the government; if
they can give new indigenous factories like ours,' credit that is interest-free,
because we are  helping to solve a fundamental social problem which is
unemployment.  But more importantly, we have one strong voice and that strong
voice is that government should create the enabling environment that is
favourable for the organised private to succeed in making marginal  profit;
nobody is talking about big gains for now.
Appeal to government
We are asking the government to give us tax holiday as a new manufacturing
outfit; we are seriously negotiating that with the authorities.  There is
nothing else  the government can do for us than to create the enabling
environment for us to operate.
They should encourage us because we are also encouraging the government by
reducing the level of unemployment and poverty in the society.  So, they should
reciprocate for us to continue rendering service to mankind.