Presentation of MAN & MAN Local Content Group to Nigerian - - PowerPoint PPT Presentation

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

Presentation

• f

MAN & MAN Local Content Group to Nigerian Local Content Monitoring Board

MANUFACTURERS ASSOCIATION OF NIGERIA (MAN) IS ONE OF THE MAJOR VEHICLES TO PUSH FOR LOCAL CONTENT AND CAPACITY BUILDING DEVELOPMENT IN NIGERIA But WHY!

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

MAN

is the main voice of manufacturers’ interest in Nigeria

“Promotes, in close cooperation with its members,

• ther organs of the Organized Private Sector, the

government and other stakeholders in the economy, an enabling environment for industrial development, growth and prosperity of the society at large.”

LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

MAN SECTORAL GROUPS COVER THE ENTIRE MANUFACTURING INDUSTRY

Food, Beverage & Tobacco Chemical & Pharmaceuticals Basic Metals, Steel, Iron & Fabrication Pulp, Paper, & Printing, Publishing Electronics & Electricals Textile, Wearing Apparel, Leather, Leather Footwear Wood, Wood Products, Furniture Man Export Man Local Content

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SECTORAL GROUPS

FOOD, BEVERAGES & TOBACCO SECTORAL GROUP

• Beer
• Starch and other Miscellaneous Food Products
• Flavouring
• Soft Drinks and Carbonated Water
• Flour and Grain Milling
• Meat and Fish
• Tea, Coffee and Beverages
• Dairy Products
• Fruit Juice
• Tobacco
• Biscuits and Blending of Spirit
• Cocoa, Chocolate and Sugar Confectionery
• Vegetable and Edible Oil
• Poultry Group

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

CHEMICAL AND PHARMACEUTICALS SECTORAL GROUP

• Paints, Varnishes and Allied Products
• Industrial, Medical and Special Gases
• Soap and Detergent
• Agro-Chemicals (Fertilizers and Pesticides)
• Pharmaceuticals
• Safety Matches
• Dry Cell Battery
• Petroleum Products
• Gramophone Records and Musical Tapes Manufacturers
• Candle Manufacturers
• Toiletries and Cosmetics
• Basic Industrial Chemicals
• Automotive Battery
• Resin Manufactures
• Ball Point Pen Manufacturers

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SECTORAL GROUPS

DOMESTIC AND INDUSTRIAL PLASTIC, RUBBER AND FOAM SECTORAL GROUP

• Rubber Products
• Domestic and Industrial Plastics
• Foam Manufacturers

BASIC METAL, IRON & STEEL & FABRICATED METAL PRODUCTS SECTORAL GROUP

• Association of Steel Pipe Manufacturers
• Metal Packaging Manufacturers
• Foundry
• Metal Manufacturers and Fabricators
• Association of Primary Aluminium Producers
• Enamel Wares Manufacturers
• Welding Electrode Manufacturers
• Galvanized Iron Sheets Manufacturers
• Nail and Wire Manufacturers Group
• Steel Manufacturers

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SECTORAL GROUPS

PULP, PAPER & PAPER PRODUCTS, PRINTING & PUBLISHING SECTORAL GROUP

• Chemical & Stationery Manufacturer
• Printing, Publishing & Packaging
• Pulp, Paper & Paper Products
• Sanitary Towels, Napkins & Diapers

ELECTRICAL & ELECTRONICS SECTORAL GROUP

• Electronics
• Refrigerators & Airconditioning/Domestic Appliances
• Electric Bulb Lamps, Accessories & Fittings
• Electrical Power Control & Distribution Equipment
• Cable and Wire

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SECTORAL GROUPS

TEXTILE, WEARING APPAREL, CARPET, LEATHER/LEATHER FOOTWEAR SECTORAL GROUP

• Textile & Wearing Apparel Manufacturers
• Leather Products Manufacturers
• Carpet and Rug Manufacturers
• Footwear Manufacturers
• Cordage, Rope and Twine Manufacturers

WOOD AND WOOD PRODUCTS INCLUDING FURNITURE SECTORAL GROUP

• Wood Products and Furniture (Excluding Metal Furniture).
• Plywood & Particle Board Manufacturers

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SECTORAL GROUPS

MAN EXPORT GROUP

• All companies involved in exportation of Nigeria-made products.

MAN LOCAL CONTENT GROUP

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SECTORAL GROUPS

MAN HAS BROAD REPRESENTATION ON GOVERNMENT BOARDS

• BOI
• SON
• NAFDAC
• Nigerian Customs Service
• Nigerian Shippers Council
• R/M Research & Development Council
• CAC
• ITF
• NEXIM
• NEPC
• COREN Etc.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

OTHER REPRESENTATIONS AND ASSOCIATIONS

MAN is represented on Government, Private Sector and International Agencies & Committees:

• Presidential Committee on Trade malpractices.
• Committee for OPS and West African integration, African

Business Roundtable, etc.

MAN has relationship with numerous International Organizations: UNDP- UNIDO - World Bank – IFC – APDF - MIGA- ECOWAS - EU

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SOME OTHER ACHIEVEMENTS

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

• Tariff reduction on R/M and plant and

machinery

• Fighting multiple taxation
• Export Expansion Grant
• Manufacturers - In-Bond Scheme
• Bona-fide Manufacturers Scheme
• Establishment of BOI
• Establishment of SMIEIS

MANLOC GROUP OBJECTIVE "to set a platform for manufacturers to promote the ideals of the Federal Government of Nigeria initiative towards local content (Nigerian Content Bill) and its further development into a national policy for the entire country whilst ensuring compliance to requisite standards."

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

Created as a result of the signing of the Nigerian Content Bill.

WHAT MAN & MANLOC GROUP OFFER NCDMB

• Certify who is a Local Content Manufacturer based on laid down

guidelines: MANLOC Group working in conjunction with NIPEX can issue each manufacturing company a certificate of being a local content manufacturer.

• Recommend members to IOC’s and EPC’s utilizing members database.
• Act as an advisory board to new members on what to do to get accepted

in the Oil & Gas industry.

• Carry out surveys and statistics to support issues enhancing local content

manufacture.

• MAN due to its size and importance, can advise foreign companies

intending to set up manufacturing outfit in Nigeria what is required to be a local content manufacturer.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

WHAT MAN & MANLOC GROUP OFFER NCDMB

• MAN can act as a matchmaker between foreign companies and Nigerian

manufacturers.

• Become a clearing house of ideas and recommendations on how to

push and improve local content in Nigeria. This will be amongst its members in areas such as lowering of import costs, incentive giving, removing unofficial taxes and levies etc.

• Mediate in issues of breach of Local Content policy amongst its

members.

• Enhance and promote local content amongst its members.
• Liaise with SON and NSE etc to set quality standards to promote local

content.

• Advise NCDMB on how manufacturers can become more competitive.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

WHAT MAN & MANLOC GROUP CAN OFFER NCDMB

• Promote and advertise local content in conjunction with NIPEX and

NCDMB.

• Report Local content breaches to NCDMB that have affected or will

affect our members.

• Enforce the need to promote support of Local Content as a group

rather on an individual basis.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

POINTS TO FOCUS ON MAKING LOCAL CONTENT A SUCCESS IN NIGERIA

SETTING OF QUALITY STANDARDS LOWERING OF PRODUCTION COSTS ACCREDITATIONS OF MANUFACTURERS PUBLICITY & AWARENESS GENERAL

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

LOWERING OF PRODUCTION COST

• Reform of import duties, taxes and levies for raw-materials.

 5% import duty comes to 25-30% landed cost increase before.

• Rationalization of State, Local and Federal Government taxes,

legal vs illegal.

• Unfair competition from Oil & Gas EPZ located companies.
• Supply of local content products to companies in EPZ zones must be

viewed as an export and must attract a duty/tax draw back scheme of 40% rebate (similar to normal exports).

• Price advantage differential must be increased from 10 to 80% if no

reforms in import duties.

• If reform in import duties then drop to 40%.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SETTING OF QUALITY STANDARDS

• SON must be urged to make a Local Content desk to address standards of

local content manufacturers. This means setting standards, aligning standards to IOC requirements and accrediting the quality of local content manufacturers.

• Work with IOC’s & EPC companies to agree to the standards.
• SON’s starting point will be those companies that have been accredited by

IOC & EPC companies who have already spent large amount of funds to accredit local manufacturers.

• Setting of standards will allow new intending manufacturer entrants to

know to what standard to produce to.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

ACCREDITATION OF MANUFACTURERS

• Criteria must be set on who is a local content producer. Based on

these criteria a manufacturer will be accredited. (see Brazil Local Content).

• Each local content manufacturer must have a local content policy

and local content officer to ensure that his/her company support local content by buying form other local content members.

• All local content manufacturers must be members of MAN. MAN will

ensure that they are manufacturers.

• NIPEX will audit all local content manufacturers with MAN

representative to ensure there is a quality management system.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

• Both MAN and NIPEX will act as accreditation boards. MAN for being a

bona-fide manufacturer, NIPEX for being an accredited manufacturer that meets minimum quality system standards.

• Importance of establishing actual production volumes per company.

This will assist as a bench mark in attaining local content.

• SON accrediting that quality standards are met.
• First two concessions will allow for special concessions from FGN to

become more competitive.

ACCREDITATION OF MANUFACTURERS

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

PUBLICITY & AWARENESS

• Nigerian Local Content Bill is not understood in Nigeria and out of

Nigeria.

• In Nigeria business captains believe it is one more of a passing fad that

will not work, no policy consistency.

• Out of Nigeria they feel that it is a hostile way of blocking imports not

understanding that by investing in local manufacturing they will have the market.

• Local investors do not understand how they can be a local content

company.

• Need for both local and foreign enlightenment.
• Create a Local Content seal for approved manufacturers.

LOCAL CONTENT GROUP

MANUFACTURERS ASSOCIATION OF NIGERIA

GENERAL

• Local content policy must be applied to the whole federation at all levels.
• NCDMB and Ministry of Petroleum and Finance must take active role in

applying local content to entire federation.

• Each Federal Ministry must create an NCD division answerable directly to

the Minister.

• Each Minister must make NCD his/her priority.
• NCDMB must become the catalyst at the beginning stage.
• The Presidency must set up an NCD division to coordinate all ministries and

their efforts and encourage State governments to emulate same.

• The existing support groups i.e MAN, SON, NSE etc should be used to

assist.

• Special financing terms must be given to local content manufacturers.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

GENERAL

• MAN Local Content Group will create two sub-divisions:



MANLOC Oil & Gas



MANLOC Nationwide.

• FGN to come up with NCD bill nation wide.
• Bill must be given relevant legal backing to be enforced.
• NCD must be given top priority with all relative concessions to help local

content manufacturing.

• Brazil Local Content policy and used as a guidance.

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

SOME OF OUR MEMBERS

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

DORMAN LONG ENGINEERING PLC

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

FOUNDRY OPERATIONS

Alloying with Indium Pouring of metal into die mould Destructive cutting test Setting pipe insert

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

NIGERIAN ROPES

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

Admin Offices Laboratory Raw Material Store Manufacturing Finished Goods Warehouse

Dispatch Warehouse

MANUFACTURERS ASSOCIATION OF NIGERIA

LOCAL CONTENT GROUP

THANK YOU