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MANUFACTURERS ASSOCIATION
OF NIGERIALOCAL CONTENT GROUP
Presentation of
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 CONTENTGROUP
MANis the main voice of manufacturers’
interest in Nigeria
“Promotes, in close cooperation with its members, other 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 GROUPSFOOD, 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 ManufacturersBASIC 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/LEATHERFOOTWEAR 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 FURNITURESECTORAL 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 REPRESENTATIONON 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 promotethe ideals of the Federal Government of Nigeriainitiative towards local content (Nigerian ContentBill) and its further development into a nationalpolicy for the entire country whilst ensuringcompliance to requisite standards."
MANUFACTURERS ASSOCIATION
OF NIGERIA
LOCAL CONTENT GROUP
Created as a result of the signing ofthe
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 LONGENGINEERING 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
RC671609
MANUFACTURERS ASSOCIATION
OF NIGERIA
LOCAL CONTENT GROUP
MANUFACTURERS ASSOCIATION
OF NIGERIA
LOCAL CONTENT GROUP
NIGERIANROPES
MANUFACTURERS ASSOCIATION
OF NIGERIA
LOCAL CONTENT GROUP
Admin Offices
Laboratory
Raw Material Store
Manufacturing
Finished GoodsWarehouse
Dispatch Warehouse
MANUFACTURERS ASSOCIATION
OF NIGERIA
LOCAL CONTENT GROUP
THANK YOU
