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Ikeja, largest importer of raw materials among 12 industrial zones

by ODINAKA ANUDU

February 5, 2015 | 12:07 am
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Ikeja zone was the largest importer of raw materials among all the 12 industrial estates in the first half of 2014. The zone imported 55.3 percent of its raw materials from other countries, latest economic review from the Manufacturers Association of Nigeria (MAN) have shown.

Ikeja was followed by Anambra/ Enugu zone which brought in 54.9 percent of its raw materials from other countries.

Ogun, the emerging industrial hub in the country, was next, recorded an import of 52.4 percent, while Edo/Delta trailed with 51.4 percent import of raw materials.

Surpringly, Imo/Abia had raw material import figure of just 15.8 percent, implying that manufacturers in the zone looked more inwards for its raw materials. Imo/ Abia’s figure equally meant the zone had the best local input content/preference (local raw materials sourcing) than any other zone, with 84.2 percent.

Oyo/Ondo/Osun/Ekiti imported 34.1 percent of its raw materials, just as Kano/Sharada/Challawa estate brought in 47.8 percent of its materials from other markets.

While Kaduna zone recorded 25.3 percent external (foreign) raw material sourcing, Kano Bompai had 50.3 percent import.

Furthermore, Apapa(Lagos) sourced 45 percent of its raw materials abroad within the period under review while Bauchi/Benue/Plateau had 32.7 percent figure of external raw materials sourcing.

Lastly, Rivers only imported 28.3 percent of its raw materials, implying that the zone tried to obtain more of its materials from locally available sources.

“The activities and the turnaround in the usage of petro-chemical input is very conspicuous here (in Rivers),” says MAN, in the January to June Economic Review.

“The zone alone raked up about 70 percent, while the least came from Ikeja zone with about 44.7 percent,” MAN adds.

On the average, the 12 industrial zones imported only 41.1 percent of raw materials while 58.9 percent of their materials were locally sourced, the data have shown.

Some firms in Ikeja zone include Guinness Nigeria plc, May&Baker plc, Cadbury Nigeria plc and Neimeth Pharmaceuticals, among others.

MAN’s second 2013 half economic review had shown that only 41 percent of raw materials were imported from abroad within the period under review.

Local raw materials sourcing in industrial zones have risen, albeit gradually, in the last 18 months.

MAN said in its July to December 2013 review that information gathered from members showed most manufacturers were finding ways of adapting to the use of local raw materials where such are available. It said the essence of this is to save foreign exchange for the country and simultaneously save costs.

ODINAKA ANUDU


by ODINAKA ANUDU

February 5, 2015 | 12:07 am
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