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

MANUFACTURERS ASSOCIATION OF NIGERIA LOCAL 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! LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

MAN is 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 Man Local Food, Beverage Content & Tobacco Chemical & Man Export Pharmaceuticals Wood, Wood Products, Furniture Basic Metals, Steel, Iron & Fabrication Textile, Pulp, Paper, & Wearing Apparel, Printing, Publishing Leather, Leather Footwear Electronics & Electricals LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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 LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

SECTORAL GROUPS 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 LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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 LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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  LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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  LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

SECTORAL GROUPS MAN EXPORT GROUP  All companies involved in exportation of Nigeria-made products. MAN LOCAL CONTENT GROUP LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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. LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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 LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

SOME OTHER ACHIEVEMENTS  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 LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

MANLOC GROUP OBJECTIVE Created as a result of the signing of the Nigerian Content Bill. "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." LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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. LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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. LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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. LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

POINTS TO FOCUS ON MAKING LOCAL CONTENT A SUCCESS IN NIGERIA LOWERING OF PRODUCTION COSTS SETTING OF QUALITY STANDARDS ACCREDITATIONS OF MANUFACTURERS PUBLICITY & AWARENESS GENERAL LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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%. LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA

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. LOCAL CONTENT GROUP MANUFACTURERS ASSOCIATION OF NIGERIA