Has the Recession Saved Nigeria from ‘Economic Colonialism’ ?

To every Nigerian, there is an adjective that seems to have the highest number of mentions lately when we talk of the current state of the nation’s economy…RECESSION. Companies have used it as a sale option, comedians have created various jokes about it, religious Institutions have made prayer points out of it, politicians have turned it to a weapon against their opponents, and the masses?

Image: buzznigeria

Image: buzznigeria

The masses suffer the unfortunate circumstances of it. The ‘Giant of Africa’ is being plagued by a situation, and it is not going to go down in history as our greatest period.

So what do we know about the recession?

According to The National Bureau of Statistics, Nigeria GDP (Gross Domestic Product) which is one of the standards used to measure the economic size of a country, dropped every quarter in 2016, and our oil production which makes up for most of our revenue dropped from 2.1million barrels of crude oil per day to 1.8 million per day. It is unfortunate that our non-oil sector, which since the oil boom, has not been given much attention is also in decline.

Gloomy I know, but there is a good side to the recession that came to mind while I was listening to Jay Z 4:44 album (that is for another day)

Say What?  I will explain,

Do you remember there was a time, when Privatization was really a big deal in Nigeria? It really got massive appeal during the Obasanjo regime, the second one, we were no longer under military rule, and Nigerians were getting their first taste of capitalism. We were steadily attracting foreign investors, we had the oil, we had population and the economic environment that was ripe for the picking. It was all good it seemed, but even then, I could not help, but believe that we were living in a façade.  We were developing, and expanding economically, but we were enriching foreign companies; we were just a branch.

Nigeria is an independent country, but economically dependent, and that was when I coined the word ‘Economical Colonialism.’

Nigeria’s current recession might have just saved us. The recession made Nigeria unconducive to many foreign investors, and forced many to leave; they left a vacuum, which could be filled by local companies.

Nigerians are forced to strategize, and step right into those shoes.

Image: dexmedia

Image: dexmedia

The foreign exchange calamity forced Nigerians to finally look inwards, creatively and innovatively, forcing job seekers to turn entrepreneurs overnight.

The Grow the Naira Hashtag, became a campaign that made Nigerians realise that it is time to begin to export rather than import. Maybe we should massively focus on rebranding ‘Made in Nigeria’ goods, especially Aba made products. Women wear prints, popularly known as Ankara, I never thought I would ever love Ankara styled fashion from great fashion designers, which are affordable, though most of them are imported. We should wake up our textile mills to provide quality print fabrics.

For the first time since Democracy, Nigerians are taking charge of its economy and seeing it for what it has been ‘a glorified façade,’ which we had little stake in.

In a harsh way, this recession was sort of a blessing.

The Recession still bites hard, but Nigerians are fighters and survivors, we will survive this storm. Keep pushing, collaborating, creating, innovating and so on. We should not give up.

So let me know what you think, what is the good you see? 

What do you think Nigerians can gain from the Recession?

I Cannot wait to see what you think in the comment box below.

Thank you

My Name is Faith Nte for Street Hawker, and this is my impression.

 

The 'Balance Sheet Recession' - Kayode Ajulo

High levels of indebtedness, past borrowing and financial recklessness can individually or collectively cause what is referred to as a ‘balance sheet recession.’

Essentially, balance sheet recession is when the government and a large number of corporations pay down debt (i.e. save) rather than spend or invest, thereby slowing down the economy. 

The term balance sheet is derived from an accounting identity, which states that assets must always equal the sum of liabilities plus equity.  In the same manner that our reserves should always equal our indebtedness plus interest payable.

If the value of our assets falls below the value of the debt incurred to purchase them, or if our reserves fall below the interest payable on our debt, then the equity is described as negative, meaning the consumer or corporation or government is technically insolvent.

image: pulse

image: pulse

Economist Paul Krugman wrote in 2014 - "The best working hypothesis seems to be that the financial crisis was only one manifestation of a broader problem of excessive debt". That it was a so-called ‘balance sheet recession.’

In Krugman's view, such crises require debt reduction strategies combined with higher government spending to offset a decline from the private sector, as it pays down its debt.

Richard Koo also wrote about Japan's ‘Great Recession’ which began in 1990. He claimed that this was due to a ‘balance sheet recession.’ which was triggered by a collapse in land and stock prices.  This caused Japanese firms to have negative equity - meaning their assets were worth less than their liabilities. 

It is worth pointing out here that the recession in Nigeria is essentially caused by corruption brought about by huge borrowing by federal and states governments, wasteful utilization of loans, lack of investments, huge debt with aggravating interest rates, unreasonable dependence on oil (compounded by the fall in oil price), dependence on government jobs, and habitual dependency on foreign products as against local products.  

To overcome the Japanese recession, Japanese corporations in aggregate opted to pay down their debts from their own business earnings, rather than borrow as firms typically would do. Japanese firms overall became net savers after 1998, as opposed to borrowers.

Koo argues that it was massive fiscal stimulus (borrowing and spending by the government) that offset this decline and enabled Japan to maintain its level of GDP. In his view, this avoided a U.S. type Great Depression, in which U.S. GDP fell by 46%. He further explained that monetary policy was ineffective because there was limited demand for funds while firms paid down their liabilities. In a balance sheet recession, GDP declines by the amount of debt repayment and un-borrowed individual savings, leaving government stimulus spending as the primary remedy.

 

Image: brooksandblake

Image: brooksandblake

SOLUTION - While government is paying its debt from money held in the reserve in order to ‘balance the sheet’, those monies should be released through borrowing. This way, people can invest through their own self-employment, thereby increasing production. 

In addition, interest rates should be lowered in order to encourage people to take loans and carry out more investments to keep the economy moving and possibly turn the economy round.

Government should keep up with its plan to encourage development of social amenities, ensure lower interest rates, and see that money is released into the economy through grants and loans to individuals or corporate bodies for the purpose of further increasing production and development.

Kayode Ajulo is a lawyer, notary public and political and humanitarian activist.

 

Power Outages. A Major Deterrent to Economic Growth & Major Economic Loss

Power/electricity is the major driving force for development in any economy.  Be it manufacturing, tourism, aviation, name it!

Chaos and catastrophe are the outcome to a country that lacks such basic infrastructure.

Failure persists, industries collapse, systems are dysfunctional, and life becomes extremely difficult and expensive for residents and business operators, thus leading to abject poverty, even when it does not seem like so.

Nigeria today, should not be dealing with issues of power at this stage of its national existence, particularly after unimaginable amounts of money have ‘supposedly’ been spent on power projects by successive administrations over the past two decades.

National Loss

There are several ways of analyzing this huge ‘National loss’. The enormous loss and the dynamics of the absence of such an important element to a nation, need to be quantified, so that there can be an understanding of the subject.

 

When the issue of increasing cost of power outages are discussed, pain, anger, and anguish accompany responses from regular people who live and run their livelihoods on the Nigerian soil. Every business owner, particularly those operating production lines and hospitality will confirm to you that approximately 40 % of their expenses are attributable to power provision.  This is why the few locally produced goods cannot compete with imported ones and the hospitality sector rates in Nigeria are one of the most expensive in the world. Most industries have shut down because they simply can’t cope. Thus, putting pressure on the foreign currencies as demand for them were the major transactions in the banking industry. This resulted in the gradual and steady weakness of the local currency, then, the inherent ‘recession’.

Let’s look at a simple analysis:

Scenario One

Comfort Lives in Abuja. She has a medium size house, and runs her office from home. She buys petrol worth N3,000 every other day, because she has to run it at least 15-18 hours everyday. He spends about N45,000 monthly.

Scenario Two

Mallam Abdullahi Lives in Lagos. He spends about NGN5,000 on diesel daily. That is about NGN150,000 a month. On Mallam’s street, there are 15 other homes; at least 7 of them power their generators at about the same cost

The estimation…

NGN150,000 x 7 HOMES = NGN1,100,000 a month

On Mallam’s street, conservatively they spend about NGN1,100,00 on diesel monthly, which is a minute figure, compared to all the homes within the length and breadth of Nigeria.

There is an estimated 170million people in Nigeria, let’s assume that 40% of the population fall into Mallam’s category, that is about 68 million people.

NGN68,000,000 x NGN1,100,000 = NGN74,800,000,000,000.0

Image: poetsandquants

Image: poetsandquants

Essentially, well more than NGN75T is lost to import product (diesel & petrol) monthly, by a fraction of Nigerians. Not to mention the cost of generating sets, inverters, solar and power generating solutions (all imports) that are being purchased by desperate citizens seeking independent solutions for basic comfort.

Imagine stuffing your generator with dollar notes and churning smoke out of it…literally burning foreign exchange daily is the practice of running generators to power our existence.

When we take into consideration large industries, organizations, and businesses that consume much more diesel fuel monthly, the point is made!

No wonder banks cut banking hours by one hour, cutting their running costs by huge amounts nationwide.

For example, GtBank has 231 branches, 17 Cash Centres, 18 e-branches, 35 GTExpress locations, and more than 1165 ATM’s (Source: Wikipedia) – All these locations must be powered one way or another.                                            

Our total annual loss to fuel, power generators, and repair parts (all imports) is simply astronomical. While we struggle with promoting foreign investment, tourism, and other revenue generating projects; there is a perpetual hole in the Nigerian pocket. Not to mention the health and environmental hazards caused by smoke from generators.

Image: gold wallpapers

Image: gold wallpapers

It is clearly evident that our power problems should be tackled by ALL MEANS.  Wake up, Nigeria!

 

* These figures are conservative approximations. A more ideal scenario is better imagined.

 

Toyin W. Oke

Publisher

The Street Hawker

Increasing Non-Oil Export Revenue; the ‘Zero Oil’ Plan - NEPC

Nigeria is the largest crude oil producer in Africa, and has largely depended on oil export proceeds for its revenue. Though rich in other natural resources, Nigeria, is yet to maximise the full potential of its endowments, including exportation of its local produce.

Following the crude oil price slump, the country has been inadvertently forced to enhance its non-oil exports for increased revenue. The responsibility for this falls on some ministries and parastatals, such as Nigerian Export Promotion Council (NEPC), which was established in 1976 by the Federal Government of Nigeria to make the world a marketplace for Nigerian non-oil products, with a mandate to spearhead the diversification of the economy by increasing non-oil exports for sustainable economic growth.

Our Objective

The objective of the Council is to diversify the productive base of the Nigerian economy away from oil and foster a market-oriented, private sector-driven economy.

Its responsibilities include promoting the development and diversification of Nigeria’s export trade, promoting the development of export related industries, promoting the implementation of export policies and programmes of the Government, spearheading the creation of appropriate export incentives, and coordinating and monitoring export promotion activities in Nigeria.

Our Role

Our role is integral to government’s diversification efforts in fulfilling the mandate of the Nigerian Export Promotion Council, which is to promote the development and diversification of Nigeria’s export trade.

Photo: goldenmindsnigeria

Photo: goldenmindsnigeria

Our Programs

NEPC began to develop strategies to accelerate the diversification of the Nigerian economy through exports long before we experienced economic challenges resulting from the fall in oil prices. As the number one agency for the promotion of non-oil, our flagship program is the “Zero Oil” plan.

The “Zero Oil” plan provides a roadmap to replace oil as the major national foreign exchange earner through carefully conceptualized interventions. The plan is one of the key components of the country’s recently released Economic Recovery and Growth Plan. The goal is to grow national earnings from non-oil exports first to US$8billion and eventually US$25 billion.

The “Zero Oil” plan also aims to diversify the country’s export base away from exporting raw commodities to value added products, increase participation of SMEs in export trade by 50%, achieve $706 million in non-oil export to the West Africa Sub- region and create 1.5 million new jobs in the SME sector by 2020.

The plan includes

Photo: macahub

Photo: macahub

·      Selecting export products (Palm Oil, Cocoa, Cashew, Sugar, Rice, Cement, Iron ore/metals, Auto parts/cars, Aluminium, Petroleum products, fertilizer/Urea, Petrochemical and Methanol) to ensure that sufficient income can be earned to replace lost national revenues within a reasonable investment cycle.

·      The One State One Product initiative, OSOP is an essential part of the “Zero Oil” plan, whereby, all states of the Federation identify at least one strategic export product based on their comparative advantage from which Nigeria can earn foreign exchange. It’s important to note though, that states are not limited to choosing only one item. For example, Enugu continues to successfully export pineapples into the European market, despite choosing other products for OSOP.

·      The Nigeria Diaspora Export Programme, NDEX is another key component of the “Zero Oil” plan, meant to leverage on the opportunity provided by the huge population of Nigerians overseas, by promoting commercial, cultural and social development of our people. NDEX has plans such as, Nigerian Heritage City, NHC (a business and cultural enclave akin to Chinatown, a venue where national cultural values can be projected and visitors can experience/purchase Nigerian goods and services across global cities.), Nigerian Cuisine Beyond Borders, NCBB (will promote Nigerian Cuisines at restaurants in major cities around the world for the purpose of attracting export-oriented investments by Nigerians in the diaspora.)

Photo: static.pulse

Photo: static.pulse

Our Assistance & Interventions

NEPC encourages and assists in the development and promotion of all non-oil exports from Nigeria. An example in the agricultural sector is cashew production. Nigeria is one of the world’s top 10 Raw Cashew Nut producing countries and it is grown in commercial quantities in 17 of our 36 states. There is high international demand for cashew, though our commercial viability is enormously untapped.

NEPC targeted interventions are aimed at improving quality standards and safety, training local farmers on planting and harvesting best practices, the provision of jute bags for farmers, marketers and exporters, providing assistance with market linkages. In the past three years we have seen a steady increase in our cashew production.

NEPC has also assisted the Nigerian textile and garment sector. Globally, the fashion industry is estimated to be worth US$2trillion by 2020. Yet despite Nigeria’s abundance of excellent designers and creative talents, we are yet to make a significant mark on the export of textiles and apparels. Our challenges range from weak production capabilities and lack of proper coordination among operators in the sector to limited knowledge of market requirements and challenging operating environments. NEPC has embarked on some key initiatives such as the rehabilitation of the Human Capital Development Centre (HCDC) in Lagos to enhance capacity for the sector; improve market understanding by supporting designers to participate at the world’s largest apparel sourcing event, Magic Fair, Las Vegas (2014, 2015 and 2016); entered strategic partnerships with multi lateral (UNIDO, USAID) and private (Style House) sector stakeholders on capacity development for the sector. We also collaborate with relevant government agencies and State governments on Common Facility Centres as a basis to attract investment to the industry.

Existing Incentives

A myriad of incentives exists from various government agencies to support and promote Nigerian exports. At NEPC, there are two primary incentives -the Export Expansion Grant (EEG) and the Export Development Fund (EDF).

The EEG and EDF are post and pre-shipment schemes respectively, for the purpose of helping all businesses in the export space from SMEs to large corporations. Additional incentives run by other agencies include the Manufacturer Exporter–in–Bond Scheme, the Export Processing Zone Facility, Pioneer Status, the ECOWAS Trade Liberalization Scheme the Export Credit Guarantee facility and the Tax Relief Inducement programme. One must also remember that incentives are only one of the ways to attract and encourage the development of exports from Nigeria. Nigeria has a large domestic market of over 170million people, it is also the manufacturing hub for the greater ECOWAS region, a market size of over 300 million people!

Photo: connectnigeria

Photo: connectnigeria

Other Programs & Orientation

Illegal exports cost Nigeria large amounts in lost revenues every year. In 2016, the government actually sued oil companies for upwards of US$12.7 billion as a result of illegal exports. In the non-oil sector there is a similar trend. For example, in 2016 several fertilizer companies were accused of illegally exporting fertilizer in large quantities and causing domestic shortages that affected our local farmers. Of course all of these is in addition to the smaller scale informal cross border trade that occurs daily.

One of the ways the Council addresses these problems is by raising awareness.  We are able to introduce and encourage the use of proper documentation and procedure through regular capacity building, sensitization, and enlightenment seminars for existing and aspiring exporters.

Photo: intracen

Photo: intracen

Many SME producers in Nigeria engage in informal export not by choice; this is the only way they know. Our capacity building programs, often developed in collaboration with international institutions, are organized to empower producers by showing the benefits of formalized business practices. For example, our STDF Project 172 was a training program that focused on local Shea and sesame industries.;it was in collaboration with the International Trade Center (ITC) and 13 other partners.

They were able to improve and expand Nigeria’s Food exports of sesame seed and Shea nut/butter, through improved SPS capacity building for Private and Public Sector Organizations and improved quality control along the supply chain of both products.

During the project over 600 women sheabutter processors were trained on international best practices within the sector. Shortly after completion of the program an American company placed an export order from Nigeria. This is just one example of what can happen when our small-scale producers are encouraged to enter the formal economy.

Quality control is an important area we must tackle in developing our non-oil exports. We lack an internationally recognized quality infrastructure framework that ensures the safety of our products; this is a major hindrance. NEPC is one of the government agencies actively participating with the EU and UNIDO on the National Quality Infrastructure Project (NQIP). NQIP aims to improve the quality, safety, integrity and marketability of Nigerian goods and services, especially those produced by SMEs.

Quality control capacity building programs are held throughout Nigeria, and SMEs are actively encouraged to participate. NQIP has hosted Food Assessment Risk Trainings, Monitoring and Evaluation Workshops, Laboratory Trainings, Quality in industry and Trade workshops; as well as Quality and Standards system improvement trainings, specifically for exporters of several agricultural products including beans and melon seed.

Tackling challenges

Our challenges are the same as those faced by most Nigerian establishments today. Inadequate access to finance is a major barrier for exporters. Finance is an integral factor for exports and we are in active collaboration with other Nigerian institutions, such as NEXIM, the Nigerian Investment Promotion Commission (NIPC), and the Bank of Industry (BOI) to ease this challenge. Financial institutions can be somewhat hesitant to lend to potential non-oil exporters because of the perceived risks involved, and oftentimes, when lending is available, interest rates are high. This is something the Council is aware of, and working on. Nigerian exporters require improved financial support, and we continually emphasize the importance of financial institutions support to our exporters. Under our new structure, the council has a unit dedicated to sourcing finance, and liaising with financial institutions to provide our SMEs with the adequate resources they need to grow and thrive. We also look for creative solutions to common funding bottlenecks so business owners are no longer forced to rely on personal and family funds to carry out their businesses.

Some other major challenges we face include infrastructural deficits like power, water and poor roads. Our producers suffer from weak logistics and support supply chain linkages as well as poor quality standardization of products (labelling & packaging). To address these challenges, the Council regularly holds capacity building workshops and trainings. We also collaborate with other government agencies both domestic and international, because governments must play a vital role in providing an enabling environment for businesses to thrive.

Opportunities Abound

Opportunities for exports available to entrepreneurs and new business entrants abound. Businesses in Nigeria have the ability to play a crucial role as engines of growth in our country. Empowering their development means creating wealth, reducing poverty and creating more jobs for Nigerians. If every single one of our over 17million SMEs was encouraged and supported to hire an additional 1 or 2 staff, over 30 million jobs would be created!

Entrepreneurs in Nigeria should continue to take advantage of the various resources on offer to them from different government agencies such as NAFDAC, SMEDAN, NEXIM, CBN, Federal Ministry of Agriculture & Rural Development, Ministry of Solid Minerals and business friendly commercial banks. The Export Development and Incentive Directorate, (EDI), within NEPC, is available to support those who desire to export. Nigerian businesses must learn from each other, share information and embrace mentorship and the opportunity to grow.

Our Foresight

Under the “Zero Oil” plan, over the next 10 years, NEPC will attempt to gain market share in the following priority sectors: Petrochemicals (worth US$150billion), Soybeans & derivatives (worth US$100billion), Sugar (worth US$60billion), Cotton & Yam (worth US$40billion), Fertilizers & Ammonia (worth US$40billion), Palm Oil (worth US$35billion), Rice (worth US$25billion), Rubber (worth $25billion), Hides & leather (worth US$20billion), Cocoa (worth US$20billion) and Gold (worth US$400billion).

Photo: globalplusnews

Photo: globalplusnews

“If Nigeria is able to capture only 5% of the international market share in these five sectors, the country could earn an additional US$8.25 billion. As more and more states and government agencies key into the vision of the Zero Oil initiative, especially now that it has been included in the national Economic Recovery and Growth Plan, I am optimistic we will see steady growth in the percentage of non-oil revenues in the coming quarters.” – Olusegun Awolowo, CEO, Nigeria Export Promotion Council

Clearly, NEPC is an integral component of Nigeria's drive to develop non-oil export.  Its achievement is important for Nigeria's economic growth as a whole - TSH

 

Skills Acquisition - A Solution To Unemployment

Small scale industries and businesses are crucial to the rapid development of a nation.

It is said that, “Puddles make up pools and pools make up rivers.”

'Pocket’ industries or home based industries , which can be classified under cottage industries, can also produce goods and services that can boost a nation’s Gross Domestic Product (GDP), increase her export capacity and also raise her peoples’ standard of living.

All these can be made possible if developing nations can create the environment that can engender the proliferation of these small scale industries. 

Photo: cdnipsnews

Photo: cdnipsnews

This calls for: 

  • The multiplication of true micro finance banks that will make available the necessary funds to the qualified and willing individuals or groups to start up small scale industries.
  • Awareness campaigns for the need to move from being “slaves” to being“masters”  that is from employees to employers (entrepreneurial development )
  • The encouragement of industrial skills acquisition in schools ( primary, secondary and higher institutions) and also on NYSC camps
  • Subsidies made by the government on industrial chemicals.
Ani, Victor. O 
For AMBER-WHEELS…curbing unemployment

 ‘Made in Aba’ - A Solution in the Face of Recession? 

Aba, a city in Abia State, has been the commercial nerve centre of Eastern Nigeria since the 40’s and 50’s. The city has been a hub for huge trade and business transactions; it is commonly said that anything you seek, is obtainable in Aba. This is the haven of proudly made in Nigeria products, and home to many industries; small, medium, and large scale manufacturers of machinery and auto spare parts, shoes, clothing, pharmaceuticals, plastics, machinery, building materials, cables, beverages, and list is endless.

Photo: businessday

Photo: businessday

Aba is surprisingly not the state capital considering its economic strength. Its people are very creative, and industrious; they have embraced entrepreneurship and local manufacturing, as a way of life for decades, and generations after generations have consistently imbibed the same entrepreneurial spirit.

The typical Aba indigene exudes rugged ingenuity, hard work and dedication; they produce everything that can be made locally and pride themselves, in their products, referring to the city as, ‘Taiwan of Africa’. Although many of them churn out imitation foreign products and label them as such, traders from neighboring countries patronize the markets.

These indigenous industrialists manufacture their wares without much government assistance, such as grants and subsidies; they doggedly parade finished goods in all nooks and crannies of the city. We cannot leave out mechanical spare part fabrications of all makes and models of cars and machinery, and of course, the traders at Ariaria International Market must be mentioned as well.

Photo: abiastategov

Photo: abiastategov

While we recognize the recent efforts being made by Abia State Government towards developing Aba as an Industrial City, adequate infrastructure, intervention, financial and technical support should be granted by governments, and relevant organizations to transform ‘Made in Aba’, which could set in motion an engine for the Nigerian economic recovery and development. After which, these locally manufactured products could compete effectively with those from other parts of the world. Also, local support for the these manufacturers, acceptance of quality standard finished goods by the public and private sector, and export of same will help achieve lofty economic objectives.

In all economies, small industries are vital for sustained economic growth, and Nigeria is no exception. Recognizing these opportunities, one wonders why:

- Aba has not received the necessary face-lift in terms the enabling infrastructure to make it a world class commercial centre? 

- ‘Made in Aba’ has not been embraced and launched as a massive state and national project?

- Aba has been considered/granted the status of a Free Trade Zone?

- Significant export proceeds are not being realised after all the years of existence of these industries?

‘Made in Aba’ has survived, despite many deterents and high failure rate of similar industries nationwide.

In the face of our current economic challenges, is in order to say it is Time for a Paradigm Shift?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Skill Acquisition - Custard Production

SMALL SCALE ENTERPRISES

THE SECRET TO FAST ECONOMIC DEVELOPMENT

It is pertinent to emphasize the fact that small scale industries and businesses are crucial to the rapid development of a nation as long as a huge fraction of the population is involved. This can be attested to by the Japanese, Chinese and even the developed countries of Europe. It is said that puddles make up pools and pools make up rivers which can flow towards a direction to form oceans and seas. In the same vein, `pocket’ industries or home based industries , which can be classified under cottage industries, can also produce goods and services that can boost a nation’s Gross Domestic Product (GDP), increase her export capacity and also raise her peoples’ standard of living as far as they are properly harnessed.

All these can be made possible if the developing nations can create the necessary environment that can engender the proliferation of these small scale industries. The necessary environment calls for

  • The multiplication of true micro finance banks that will make available the necessary funds to the qualified and willing individuals or groups to start up small scale industries.

  • Awareness campaigns for the need to move from being “slaves” to being“masters”  that is from employees to employers (entrepreneurial development)

  • The encouragement of industrial skills acquisition in schools ( primary, secondary and higher institutions) and also on youth camps

  • Subsidies made by the government on industrial chemicals.

The government of Nigeria has made quite an effort to create the favourable environment for the formation of small scale industries. This she has done through the formulation of micro finance bank and training agencies. However, more need to be done with regards to industrial skills acquisition training. 

CUSTARD

Photo: nigeriabusinessportal

Photo: nigeriabusinessportal

Custard is a whole starch meal that is made from corn starch and Tapioca starch (cassava). It is a product of American origin served popularly as a breakfast meal because of its high energy nutrient and its ease of preparation. It is best served hot or warm, with the addition of sugar and milk. Below is a recipe and process procedure for the manufacture of custard floor (corn or cassava starch)

NB: Corn or cassava intended for custard production should meet export standard for packaged foods which is listed as

a. Ultrafine and white starch

b. Free from micro organisms

c. Free from chemical contaminants

Formula/Recipe:

       i. Corn/cassava starch

      ii.  Flavour

    iii.   Colour (egg yellow)

     iv.  Sugar

       v.  Sterile clean water

     vi. Vitamin mix (A,B,C)

Measurements/Quantification:

 i.   Weigh 1000g corn/cassava starch

ii.   Weigh 5g flavour

iii. Weigh 3g colour

iv. Weigh 100g sugar (variant)

v. Weigh 1000g sterile clean water

                vi. Weigh 10g vitamin mix

 Mixing procedure:

 i. Dissolve flavour and colour in 100g of clean sterile water

ii. Dissolve sugar and vitamin mix in 200g of clean sterile water. Pour both mix in a bowl and mix

iii. Put starch in clean stainless steel bowl and introduce liquid mix: colour, flavour, sugar, vitamin mix ) while mixing the starch to properly homogenize

iv.  Introduce into drying oven of between 50-600c until moisture loss of 95% is attained

v. Remove from oven and mill to powder

vi. Package in beautiful cellophane packs or plastic container. Label and pack in paper cartons.

vii.            Store in cool dry warehouse

prepared by Ani, Victor. O for AMBER-WHEELS

profvic2000@yahoo.com

08051428027, 07034831669,08098166900

 

 

Skills Acquisition - A Solution to Unemployment

Small scale industries and businesses are crucial to the rapid development of a nation.

It is said that, “Puddles make up pools and pools make up rivers.”

'Pocket’ industries or home based industries , which can be classified under cottage industries, can also produce goods and services that can boost a nation’s Gross Domestic Product (GDP), increase her export capacity and also raise her peoples’ standard of living.

All these can be made possible if developing nations can create the environment that can engender the proliferation of these small scale industries.

Photo: cdn.ipsnews

Photo: cdn.ipsnews

This calls for:

  • The multiplication of true micro finance banks that will make available the necessary funds to the qualified and willing individuals or groups to start up small scale industries.
  • Awareness campaigns for the need to move from being “slaves” to being“masters”  that is from employees to employers (entrepreneurial development )
  • The encouragement of industrial skills acquisition in schools ( primary, secondary and higher institutions) and also on NYSC camps
  • Subsidies made by the government on industrial chemicals.
Ani, Victor. O 
For AMBER-WHEELS…curbing unemployment