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RAW MATERIALS SOURCING FOR MANUFACTURING IN NIGERIA (4TH EDITION)

RMRDC SURVEY SERIES 061 NOVEMBER, 2009

Editors: Onwualu, A.P., Abdullahi, A.K Jolaoso, M.A., Mbuk, M.I., Olife, I.C.

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Publisher Raw Materials Research and Development Council (RMRDC) No 17, Aguiyi Ironsi Street Maitama District P.M. B. 232, Garki Abuja Tel: 07098213090, 07098213091 e-mail: ceo@rmrdc.gov.ng website: http/www.rmrdc.gov.ng

Copyright

RMRDC, 2009

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means of electronics, mechanical, photocopying, recording or otherwise without prior permission in writing from the copyright owner.

Typesetting and graphics Desktop Publishing Unit Documentation and Publishing Division Raw Materials Research and Development Council, Abuja.

ISBN: 978-978-50868-1-2

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EDITORIAL COMMITTEE

1. Prof. Onwualu A.P.

2. Dr. Abdullahi A.K.

3. Dr. Jolaoso M.A.

4. Mrs. Mbuk M.I.

5. Miss Olife I.C.

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TABLE OF CONTENT

Title page i

Table of content iii

Foreword vi

Acknowledgement vii

List of tables viii

List of abbreviations xi

CHAPTER ONE 1.0 Introduction 1 1.1 Structure of the Report 2 1.2 Members of the Committee 2 CHAPTER TWO BASE METAL, IRON & STEEL AND ENGINEERING SERVICES SECTOR 2.1 Introduction 4 2.2 Raw Materials Requirements in the Sector 4 2.3 Raw Materials Requirements on Sub-Sectorial Basis 4 2.4 Specifications of Raw Materials for Iron and Steel Production 12 2.5 Coke Blend/Coke/By-Products 13 2.6 Oxide Pellet/Sinter 14 2.7 Limestone/Dolomite 14 2.8 Specifications for Foudry Molding Sands 16 2.9 Investment Opportunites in the Sector 18 2.10 Research and Development in the Sector 19 2.11 Challenges and Opportunites 20 2.12 Government Policies Affecting the Sector 21 2.13 Conclusion 21 2.14 Recommendation 21 CHAPTER THREE CHEMICAL AND PHARMACEUTICALS SECTOR 3.1 Introduction 23 3.2 Raw Materials Requirements and Sourcing 24 3.3 Soap and Detergent Sub-Sector 24 3.4 Capacity Utilization Profile 24 3.5 Potential for Local Substitutes 43 3.6 Industries Operating in the Sector 44 3.7 R & D Activities in the Sector 45 3.8 Recommendations 45 CHAPTER FOUR ELECTRICAL AND ELECTRONICS SECTOR 4.1 Introduction 48 4.2 Raw Materials Requirement 48 4.3 Industries Operating in the Sector 4.4 R & D Activities and Facillities in the Sector 58

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4.5 General Observation 61 4.6 Recommendations 62 CHAPTER FIVE FOOD, BEVERAGES AND TOBACCO SECTOR 5.1 Introduction 64 5.2 Sugar 64 5.3 Quality Specifications of Raw Materials 65 5.4 Bakery 71 CHAPTER SIX MOTOR VEHICLE AND MISCELLANEOUS SECTOR 6.1 Introduction 74 6.2 Raw Materials Requirements in the Sector 74 6.3 Installed Capacity and Capacity Utilization 76 6.4 Raw Material Sourcing/Local Availability 77 6.5 Potential for Local Substitution 77 6.6 Recommendations 79 CHAPTER SEVEN NON METALLIC MINERALS SECTOR 7.1 Introduction 80 7.2 Raw Materials Requirement 80 7.3 Specification of some Non-Metallic Mineral Raw Materials 93 7.4 Capacity Utilization 99 7.5 Industries in Operation 105 7.6 Additional Industries Required to Meet the Existing National Demand 105 7.7 Research and Development 106 7.8 Summary of Processing Technology of some Non-Metallic Minerals 106 7.9 Fiscal Policy 106 7.10 Problems and Challenges 106 7.11 Conclusion 107 7.12 Recommendations 108 CHAPTER EIGHT DOMESTIC AND INDUSTRIAL PLASTICS, RUBBER AND FOAM SECTOR 8.0 Introduction 110 8.1 The Plastic Sub Sector 110 8.2 The Petrochemical Industry 111 8.3 The Tyre Sub-Sector 112 8.4 Industries Operating in the Sector 115 8.5 Industries that could be Established 115 8.6 Raw Materials that could be Developed or Sourced Locally 116 8.7 Raw Materials Specification 116 8.8 R & D Activities in the Sector 122 8.9 Raw Materials Process Technology, Machinery and Products 122 8.10 Fiscal Policies Affecting the Sector 127 8.11 Recommendations 129

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Appendix 132 CHAPTER NINE PULP, PAPER, PAPER PRODUCT, PRINTING AND PUBLISHING SECTOR 9.1 Introduction 133 9.2 Primary Paper Mills 134 9.3 Raw Materials Used in the Sector 134 9.4 Industrial Specifications of Raw Materials in the Sector 139 9.5 Capacity Utilization Profile 142 9.6 Short Fall for Major Raw Materials in the Sector 144 9.7 Potentials for Local Substitute 146 9.8 Investment Opportunities 147 9.9 Research and Development Activities in the Sector 149 9.10 Machinery/Equipment Engaged for Processing Raw Materials in the Sector 151 9.11 Recommendations 153 CHAPTER TEN TEXTILE, WEARING APPAREL, LEATHER AND LEATHER PRODUCTS

SECTOR 10.1 Introduction 155 10.2 Raw Materials Requirement and Utilization 160 10.3 Products 162 10.4 Cottage Tanning/Footwear and Leather Goods Industries 165 10.5 Machinery 166 CHAPTER ELEVEN WOOD AND WOOD PRODUCTS SECTOR 11.1 Introduction 174 11.2 Raw Materials Requirements in the Sector 175 11.3 Sources of Roundwood (Logs) 177 11.4 Adhesives 178 11.5 Basic Chemicals used in Resins 179 11.6 Industrial Chemicals 179 11.7 Overlays 179 11.8 Availability of Local Raw Materials that could be Developed and Used by the Industries

in the Wood and Wood Products Sector 180 11.9 Industries Operating in the Sector 184 11.10 Investment Opportunities in Wood and Wood Products Sector 185 11.11 Research and Development Activities in the Sector 186 11.12 Machinery and Equipment Required in the Sector 188 11.13 Conclusion 190 11.14 Recommendation 198

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FOREWORD When in the middle of the 1980’s Nigeria discovered that the national economy was experiencing some difficulties, the Structural Adjustment Programme was introduced in 1986 to diversify the nation’s economy and make it less dependent on petroleum whose price in the international market was unpredictable. This brought about some challenges, among which was the devaluation of the naira, that made importation of the needed raw materials and machinery difficult. In response to these challenges, the Council was established by the Act. No. 39 of 1987 to expedite industrial development through optimal utilisation of local raw materials as inputs for our industries. In order for the Council to achieve its mandate of “reviewing from time to time raw materials resources availability and utilisation with a view to advising the Federal Government on the strategic implication of conservation, exploitation, depletion or stockpiling of such resources”, techno-economic survey of Nigeria’s natural resources was introduced in 1989, with a view to identifying gaps in raw materials sourcing, utilization and development. The 1989 survey report was updated in 1992, 1996, 1999/2000, 2003 and 2006 so as to provide periodic and current data on raw materials development and utilisation. Over the period, the information collected was always analysed, produced and disseminated to prospective investors, researchers and the general public through the Raw Materials Information System (RMIS) and website (http/www.rmrdc/gov.ng). The reports, which are based on the ten sectors of the Manufacturers Association of Nigeria (MAN), are usually synthesized into a single publication titled” Raw Materials Sourcing for Manufacturing in Nigeria”. The 1st, 2nd and 3rd editions of the publication were produced in 1990, 1993 and 1997 respectively. This edition is the fourth in the series. The objective of the publication is to provide vital information on raw materials sourcing for existing industries in the ten sectors, their capacity utilization, raw materials specifications, potentials for local substitutes in the sectors, industries operating in the sectors, research and development activities, among others. The report differs with the previous editions in that raw materials specifications in the sub-sectors were added to assist raw materials suppliers. Also the report focused on only 3 sub-sectors in each of the ten sectors. This is aimed at giving more detailed information on the sub-sectors of MAN. It is hoped that the information in the publication would assist existing manufacturers and prospective investors with necessary information that would enable them make informed decisions on the use of local raw materials to enable the Country save its scarce foreign exchange. Engr. (Prof.) P. A. Onwualu. FAS Director General/Chief Executive Officer

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ACKNOWLEDGEMENT

The Committee wishes to express deep appreciation to the management of the Raw Materials

Research and Development Council (RMRDC) for the opportunity given to its members to

participate in this very important assignment. Our sincere gratitude particularly goes to the

Director-General for his total support throughout the duration of the assignment.

The Committee alsi extends its gratitude to all those who gave their secretarial contributions,

especially Mr. Mike Dimkpa for typesetting the work. Our appreciation also goes to all those

who contributed in one way or the other to make this project a success.

Dr. A.K. Abdullahi

Committee Chairman

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LIST OF TABLES

Table 2.1 Raw Materials and Status of Industries in Base-Metal Sub-Sector. Table 2.2 Major Iron Ore Deposits in Nigeria. Table 2.3 Raw Materials Available in the Country Table 2.4 Raw Materials Imported Table 2.5 Raw Materials Available Locally but Imported Table 2.6 Some of the Additional Industries Needed to Make the Existing Industries Self

Reliance Table 3.2.1 Capacity Utilization of Raw Materials: Soap and Detergent Sub-Sector Table 3.2.2 Capacity Utilization of Raw Materials: Agro-Chemicals and Fertilizers Table 3.2.3 Capacity Utilization of Raw Materials: Pharmaceuticals Sub Sector Table 4.1 Sub-Sector: Electrical Bulbs, Lamps and Accessories

Table 4.2 Sub-Sector: Electrical Power Control

Table 4.3 Sub-Sector: Cables and Wire

Table 4.4 Sub-Sector : Electrical Bulbs, Lamps and Accessories Table 4.5: Electrical and Electronics: Basic Raw Materials Available in Nigeira and their

Locations Table 4.6 R & D activities in Nigerian Research Institute Table 5.1 Import Duty Profile of Selected Raw Materials (2008-2012) Table 5.2 Raw Material Requirements Table 5.3 Average Capacity Utilization in Bakery Industries Table 6.1 Vehicle Body Component & Technology Situation Table 6.2 Summary of Component, Raw Materials and Technology Existing and Possible

Manufacturers for Engine and Transmission Table 7.1 Major Raw Materials Used by the Sub-Sectors Table 7.2 Non-Metallic Raw Materials Used by the Sub-Sectors and their Source Table 7.3 Raw Materials Requirement by the Industries Table 7.4 Occurrence, Development and Proven Reserves of some Non-Metallic Minerals

Raw Materials in Nigeria Table 7.5 Product Specification for Kaolin in Industries Table 7.6 Product Specification for Ball Clay Table 7.7 Industrial Specifications for Barites Table 7.8 Specifications of Feldspar for Ceramic Industry Table 7.9 Specification of Gypsum in Chalk, P.O.P and Ceramics Table 7.10 Industrial Specification for Talc Table 7.11 Qualitative Classification of Quartz/Silica Sand Table 7.12 Specifications for Marble/Limestone Table 7.13 Industrial Specification of Calcium Carbonate for Cement, Fertilizer and Glass

Production Table 7.14 Average Operating Capacities of the Industries in the Non-Metallic Mineral

Products Sector

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Table 7.15 Summary of Processing Technology of some Non-Metallic Minerals Table 8.1 Raw Materials for the Plastic Sub-Sector Table 8.2 Raw Materials for Rubber Sub-Sector Table 8.3a Petroleum-Based Raw Materials Table 8.3b Agro-Based Raw Materials Table 8.3c Chemical-Based Raw Materials Table 8.4 Raw Materials for the Plastics Sub-Sector Indicating Full Capacity Requirements,

National Demand, Current Capacity, and Shortfall for 2006. Table 8.5a Capacity Utilization for Plastic Products Table 8.5b Capacity Utilization for Tyres and Tubes Table 8.6 Table 8.7 Polystyrene Sheets Table 8.7 Table 8.8 Summary of Processing Facts in the Plastic Industry Table 8.9 Table 9.1 Raw Materials Requirement of Pulp, Paper, Paper Products, Printing & Publishing

Sector Table 9.2 Industrial Specifications of Raw Materials in the Sector Table 9.3 Summary of Average Capacity Utilization in the Pulp, Paper, Paper Products,

Printing and Publishing Sector. Table 9.4 Capacity Utilization in the Pulp, Paper, Paper Products, Printing and Publishing

Sector 2003 – 2006 Table 9.5 Most Important Raw Materials of the Pulp, Paper, Paper Products, Printing and

Publishing Sector (demand-supply gap) Table 9.6 Investment Opportunities in Paper, Paper Products, Printing and Publishing

Sector Table 9.7 Research and Development Activities in Nigerian Institutions/ Industries Table 9.8 List of Machinery and Equipment for the Sector (Paper Industry) Table 10.1 Raw Materials Requirement for Wearing Apparel Industry Table 10.2 Livestock Population Figures in Nigeria Table 10.3 Common Products of the Wearing Apparel Industry Table 10.4 Major Leather Exporters in Nigeria for the Year 2005 Table 10.5 Production Activities of Cottage Tanning Industries in Kano Table 10.6 Production Activities of Cottage Leather Retaining, Dyeing and Finishing

Industries in Kano Table 10.7 Production Activities of Cottage Leather Products Industries Table 10.8 List of Raw Materials Requirements for the Tanning Industry Table 10.9 List of Raw Materials Requirements for the Footwear and Leather Goods

Industries Table 10.10 Consumer Price Indices for Clothing and Footwear Table 10.11 List of Industries with Linkages with Leather and Leather Products Table 11.1 Research and Development Activities in Nigeria Table 11.2 Major Raw Materials Utilized in the Sector Table 11.3 Raw Materials and Industries

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Table 11.4 Wood Requirement of Industries Table 11.5 Geographical Distribution of Forest Lands and Timber Stocking in Nigeria: 1988 Table 11.6 Kaolin Occurrence and Deposits in Nigeria

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LIST OF ABBREVIATIONS

AAD Agro and Agro-allied Deparment AGOA African Growth Opportunity Act ARCEDEM African Regional Centre for Engineering Design and Manufacture ASW Augmented Spherical Wave AT&P African timber & plywood BOF Basic Oxygen Furnace CBN Central Bank of Nigeria CKD Completely Knocked Down CPD Chemical & Pharmaceutical Division CD Computer Division D Director DD Deputy Director DRF Drug Revolving Fund EAF Electric Arc Furnace ECAC East and Central African Countries EEG Export Expansion Grant FDI Foreign Direct Investment FBD Food & Beverage Division FRIN Forestry research Inst. Of Nigeria FSM Fixed Spin moment GDP Gross Domestic Product KRPC Kaduna Refinery and Petrochemicals Company LDL large diameter logs LNG Liquidified Natural Gas MAN Manufacturers Association of Nigeria MF melamine formaldehyde MFA Multi-fiber Arrangement MT Metric ton MTF-EE Multidisciplinary Task Force – Electrical and Electronics N/A Not Available NIPRD National Institute for Pharmaceutical Research and Development NIPP National Integrated Power Programme NARICT National Research Institute for Chemical Technology NIPRD National Institute for Pharmaceutical Research and Development NMC Newsprint Manufacturing Company NNMDA National Medicine Development Agency NNPC Nigerian National Petroleum Corporation NPM Nigerian Paper Mills Ltd NISPRI Nigerian Stored Products Research Institute OCIL Organic chemical Industries Ltd OEM original equipment manufacturers PKO Palm Kernel Oil

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PF phenol formaldehyde PHCN Power Holding Company of Nigeria PRODA Projects Development Agency PPPPP Pulp, Paper, Paper Product, Printing and Publishing sector RADAMA Refrigeration, Air conditioning and Domestic Appliances SAP Structural Adjustment Programme SKD Semi-Knocked-Down SMEs Small and Medium Enterprises SON Standards Organisation of Nigeria TAM Turn Around Maintenance UPS Uninterrupted Power Supply UNIDO United Nations Industrial Development Organization UBE Universal Basic Education system UF Urea Formaldehyde UDU Usmanu Danfodiyo University VAT Value Added Tax WTO World Trade Organization

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CHAPTER ONE

INTRODUCTION

1.0 The Raw Materials Research and Development Council (RMRDC) was established by Act No. 39 of 1987 with the broad mandate to promote, support and expedite industrial development and self-reliance through optimal utilization of local raw materials as inputs to the industries. Among the seven specific mandates of the Council, three, which are directly linked to the need for Techno-Economic Survey are:

to draw up policy guidelines and action programmes on raw materials acquisition, exploitation and development;

to review, from time to time, raw materials resources availability and utilization, with a view to advising the Federal Government on the strategic implications of depletion, conservation or stock-piling of such resources;

to advise on adaptation of machinery and processes for raw materials utilization. In pursuance of these mandates, the Council commissioned Committees on its first Techno-Economic Survey of Nigeria’s natural resources and their industrial potentials in 1988. The cardinal objective of the survey, which covered all the industrial sub-sectors of the economy, as classified by the Manufacturers Association of Nigeria (MAN), was to gather information on locally available raw materials, technology and raw material requirements and capacity utilization of the manufacturing industries. The survey also covered the conversion of locally sourced raw materials into industrial inputs and the dissemination of information to stakeholders. In order to consolidate on the gains of this exercise and update the data collected in the first survey, which was concluded in 1989, the Council organized other surveys in 1992, 1996, 2000, 2003 and 2006. However, in 2007, the Council was restructured through which a new organogram emerged. The new structure placed the responsibility of conducting Techno-Economic Surveys on the various technical departments. Consequently, a Committee was constituted to review the Survey programme with a view to improving subsequent exercises. The Committee was set up with the following Terms of Reference:

i. Review the Techno-Economic Survey/ Industrial Study Programmes of the Council ii. Review previous modalities of the exercise iii. Develop alternative modalities to enhance the quality of the exercise iv. Redesign the programme to make it contribute to government policies v. Recommend ways of reducing respondent apathy during surveys/ industrial studies vi. Make any other recommendation to enhance the quality of the programme.

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In order to provide comprehensive information on raw materials sourcing covering all the ten sectors, the maiden publication tagged “Raw Materials Sourcing for Manufacturing in Nigeria” was produced in 1990. The publication was updated in 1993 and 1997. This edition, which is the fourth in the series, is synthesized 2006 reports of the ten sectors of MAN. 1.1 STRUCTURE OF THE REPORT As in the 3rd edition, in this edition information is presented based on the ten sectors of MAN. However, the presentation is more concise and focused. Specifically the report is structured as follows:

Introduction;

Raw Material Requirements;

Raw Material Sourcing;

Raw Materials Specification;

Capacity Utilization;

Raw Materials Shortfall;

Potentials for Local Substitutes;

Industries operating in the Sector;

Investment Opportunities in the sector;

Research and Development Activities;

Fiscal Policies; and

Recommendations

1.2 MEMBERS OF THE COMMITTEE

1. Dr. A.K. Abdullahi D(AAD) Chairman

2. Engr. F. Folarin Okuribido DD(MVMD) Member

3. Alh. U.A. Hassan DD(TLD) “

4. Mr. B.A. Aluko DD(FBD) “

5. Mrs. M. I Mbuk DD(PRFD) “

6. Mr. E.A. Asanga DD(CPD) “

7. Engr. G. Ladan DD(IED) “

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8. Mr. K.O. Biliaminu DD(MD) “

9. Dr. M.A. Jolaoso DD(ICSD) “

10. Dr. A.A. Ogunwusi DD(WPPD) “

11. Dr. D.M. Ibrahim DD(NOC) “

12. Mr. C.C. Okeke DD(CD) “

13. Dr. M.L. Buga DD(FBD) Member/Sec.

14. Mr. S.S. Onjewu ACSO(FBD) Asst. Secretary

15. Miss. I.C. Olife SOI(FBD) Asst. Secretary

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CHAPTER TWO

BASE METAL, IRON & STEEL AND ENGINEERING SERVICES

2.1 Introduction:

The Industrial Studies on Base Metal, Iron and Steel, and Engineering Services Sector which was updated in 2006 was aimed at evaluating the availability of local raw materials in the Foundry and Iron and Steel sub-sectors. The studies were aimed at providing data on raw materials requirements for the existing industries, process technology, priority areas for research and development activities, resource-based investment opportunities, and areas required for capacity building in the fabrication of plants, machinery as well as production of spare parts. However, the data analyzed was affected by low return of administered questionnaires attributed to the following factors:-

Apathy toward the study

Obsolete equipment and machinery

Lack of working capital and difficulty in accessing bank loans for long-term investment

Fear of divulging trade secrets to other competitors in the sector

High tariff on spare parts machinery and consumables

Business closures as a result of hard economic environment

In adequate infrastructural facilities.

As a result of these factors most of the key players in the Sector refused to appropriately respond to critical questions raised in the study. Therefore, most of the analyses carried out were based on scanty and secondary data obtained during the 2006 update of industrial studies on Base Metals, Iron and Steel, and Engineering services Sector. However in this synthesis an overview of the status of four (4) sub-sectors, viz. Base Metals, Iron and Steel, Foundary and Welding Electrodes is given together with the problems and challenges as they relate to raw materials, machinery and equipment, process technology, R&D activities and fiscal policy. 2.2 Raw Materials Requirements in the Sector: The raw materials required in the sector are mainly metallic ores that were classified into ferrous and non-ferrous ores. Ferrous ores are usually utilized as primary raw materials for Iron and Steel production, while the non-ferrous are used as base metals for production of different types of alloys required in the sector. Metallic ores include iron ores, columbite, nickel, casserite (tin ore), wolfram (tungsten ore), molybderite (molybdenum ore) galena (lead ore), vanadium, sphalerite tourmaline, chromite (zin ore), gold, zircon, magnesite, ilmenite, e.t.c. Most of these ores and other raw materials such as coal, fluxes and refractory required in the Iron and Steel production have been found to occur in commercial quantities in many parts of Nigeria. Reserve estimates of some of the mineral ores available in Nigeria are presented in table 2.1, while detailed raw materials

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required in the sector at full and current capacities from 2003 to 2006. And this shortfall of 6,178, 997 to 3,167, 726 3,011,271 respectively over a period of 4 years. 2.3 Raw Material Requirements on Sub-Sectoral Basis More than ninety (90) percent of raw materials used in the Iron and Steel, Foundries and Welding Electrodes sub-sectors are imported, even though some of them can be sourced locally with appropriate technology and production methods. However, raw materials required by each of the sub-sector are presented as follows: 2.3.1 Base Metals sub-sector Base metals are non-ferrous metals such as aluminum, copper, lead, zinc, tin, gold, manganese columbite, nickel, tourmaline, chromites, e.t.c, while some of these metals can be used in their natural forms, others are used as alloys. In recent times, non-ferrous metals and alloys are significantly contributing to global technological development. Focus of activities in this sub-sector had been mostly on tin, a metal for which Nigeria has attained international standing in the early ‘70s. Some of the available local raw materials and other activities are presented below: Table 2.1: Raw Materials and Status of Industries in Base-Metal Sub-Sector.

S/N

BASE METAL

DEPOSIT [STATE]

PROVEN RESERVE

[MT]

REMARKS

INDUSTRY AND STATUS

Name Status

1 Aluminum Benue, Delta, Ekiti, Enugu, Kebbi, Taraba,

N/A Exploration 1. ALSCON

2. Private Mills

About to be rehabilitated after privatization Functional

2 Tin Bauchi, Cross River, Ekiti, Kaduna, Kano, Niger, Plateau, Nassarawa, Taraba, FCT

300,000 Mining in progress

Makeri Smelting Co. Ltd., Jos

Reorganization/ rehabilitation

3 Lead and Zinc Bauchi, Benue, Cross River, Ebonyi, Imo, Kano, Plateau,

20,000 Legal/illegal mining in progress

-

-

4 Gold Cross River, Edo, Kaduna, Katsina, Kebbi, Niger, Osun, Zamfara,

N/A Organized gold mining going on

-

-

5 Copper Bauchi, Edo, Enugu, Kano, Niger,

N/A -

-

-

6 Silver Ebonyi, Gombe, Osun N/A Associated with gold, lead and zinc

-

-

7 Manganese Cross River, Kaduna, Katsina, Kebbi,

300,000 Illegal mining in progress

-

-

8 Titanium Plateau, Kaduna Associated with tin ore. Presently waste in tin extraction.

-

-

Source: RMRDC.

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2.3.2: Iron and Steel sub-sector Most of the operators in the sub-sectors are process equipment fabricators, spare parts producers, welders, steel furniture, doors, windows and burglary-proof fabricators. Some of the essential raw materials and consumables required in the sub sector are Iron Ore, Coking Coal, Limestone, dolomite, refractory bricks, Ferro-alloys, Iron and Steel Scrap, natural gas and billets. Major Iron ore deposits in Nigeria are presented in Table 2.2. Table 2.2 Major Iron Ore Deposits in Nigeria.

STATE LOCATION % FE PROVEN RESERVES [MILLION TONNES]

REMARKS

Kogi Agbaja Itakpe Bass Nge Agbado-Okuda Ajbanoko Chokochoko Fatti Koton-Karfe

45 – 54 38 – 45 43 – 49 38 – 43

40 35 46

43 - 53

1,159 200 – 300

4,000 60 60 20 37

803

UI Mining in progress

-do- -do- -do- -do- -do- -do-

Plateau Muro Hills 32 N/A UI

Bauchi Rishi Gamawa

10 – 19 40 – 45

N/A N/A

G UI

Kebbi Darkin-Gari 37 N/A UI

Anambra Nsude Hills 43 – 50 65 UI

Source: Oyeyinka et al [1997] KEY UI = Under investigation N/A = Not available

G = Only geological confirmation of ore presence

2.3.3. Foundaries The Foundry sub-sector provides base for production of industrial components, spare parts, equipment and machinery. Most of the foundries in Nigeria deal with iron castings, low quality aluminum, brass, bronze and copper. The main raw materials required are scrap, pig Iron, coke, ferro-silicon ferro-manganese, limestone, silica sand, bentonite and sodium silicate. Iron castings are made from scraps such as (engine blocks, crank shafts, etc), while for non-ferrous castings, usually aluminum, copper, brass and tin are required. The major material inputs for the foundry industry include:

Feedstock for melting pig iron, cast Iron Scrap, Steel Scrap, ferro-alloys, copper and its alloys, aluminum scraps, ingot, fluxes, etc.

Molding materials – foundry sands, bentonite, binders

Refractory lining materials, crucibles and other consumables. 2.3.4. Welding Electrodes Welding electrodes are widely used in Base Metal, Iron and Steel and Engineering Services Sector. Electrodes contain various minerals which remove impurities during welding and protect weld area from oxygen and nitrogen, etc. Some minerals used in its production which

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are locally available in Nigeria include rutile, fluorspar, limestone, silica, mica, feldspar, bentonite and kaolin. Although most of these raw materials required for production of welding electrodes are locally available, only limestone and feldspar are being commercially exploited in the Country. Most of other mineral deposits are either under investigation or yet to be quantified, and thus major raw materials required in the sub-sector are imported. Table 2.3: Raw Materials available in the Country SUB-SECTOR: IRON AND STEEL

S/N RAW MATERIALS UNIT OF MEASUREMENT UNIT COST (N) 2006

1. Stainless Steel Sheets Mt 30,000

2. Stainless Steel Bars Mt 6,300

3. Cast Iron Mt 6,500

4. Mild Steel Sheets Mt 11,000

5. Iron Rods Mt 15,000

6. Angle Iron Mt 6,000

7. Iron Pipes Mt -

8. Iron Channels Mt -

9. Mild Steel Rods Mt -

10. Stainless Steel Rods Mt -

11. Hot Rolled Coil Mt 60,000

12. Paints Litres/Gallons -

13. U-Channels Mt -

14. Iron Coil Mt 110,000

15. Medium Carbon Rods Kg 32,000

16. High Carbon Steel Rod Kg 33,000

17. Steel Pipes Mt -

18. Electrodes -

19. U-Channels Lengths -

20. Galvanized Iron Sheets Mt -

21. Galvanized Wire Rolls -

22. Oxygen/Acetylene Gas M3 200/m3

23. Galvanized Pipes Mt 15,000

24. Galvanized Steel Sheets Pieces 3,500

25. Bolts & Nuts Pieces -

26. Steel Pipes

27. Ferrous Materials Pieces 7,500

28. Non Ferrous Materials Pieces 7,500

29. Flat Bars Lengths 6,000

30. Iron Ore Mt -

31. Copper Sheets Mt -

32. Brass Plate Mt -

33. Galvanized Iron Pipes Mt -

34. Angle Iron Pieces 2,250.00

35. Flat Sheets “ 2,700.00

36. Rods “ 1,850.00

37. Channels “ 2,200.00

38. Electrodes “ 1,800.00

39. Steel Pipe Kg 3.300.00

40. Steel Pan “ 5,000.00

41. Aluminum “ 5,550.00

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42. Mild Steel Pieces 3,600.00

43. Flat Bar Mt 300

44. Galvanized Pipes “ 1,200.00

45. Angle Irons Lengths/M 2000 – 3000/Length

46. Square Pipes (sections) Lengths 1800 – 2000/Length

47. Metal Plates Sheets 1500 – 2000/Sheet

48. Aluminum Profiles (for doors & windows)

Pieces 2500 – 3000/Piece

49. Glazing Bites Pieces 1000 per Piece

50. Round Mild Steel Pipes Lengths 2000 – 2500/Length

51. Iron Ore Metric Tonnes 6,000

52. Dolomite “ 5,800

53. Limestone “ 4,850

54. Heavy melting Scrap “ 18,000

55. Steel Rods “ 100,000

56. Plates (Iron) Mts 3,500 – 60,000

57. Angle Iron “ 350 – 10,500

58. Plates Sheets “ 6,000 – 12,500

59. U-Channel “ 1,500 – 4,000

60. Channels “ 2,500 – 10,000

61. Pipe Casing “ 1,000 – 3,500

62. Shaft “ 500 – 1,800

63. Rods (Metals) Kg (Mts) 100 – 7,000

64. Electrodes Plits -

65. Cutting Disc Pieces 150 – 350

66. Oxygen Ltrs 3,300 – 5,500

67. Carbides Kg 60 – 20,000

68. Pipes Metals Mts 600 – 40,000

69. Gas Ltrs 15,000

70 Aluminum Roofing Sheets Mts 1,200

71. Anodized Aluminum Profiles “ 600

72. Flat Bar “ 800 – 1,700

73. Metal Sheets “ 3,000 – 8,000

74. Bearings Kg 150 – 2,500

75. Bolts “ 15 – 1,000

76. H-Beam Pieces 25,000 – 50,000

77. Z-Poline (Iron) Mts 3,500 – 5,000

78. Saw Blades Pieces 150

79. CE Plastic Mould Pieces 550

80. Thermostat Amplifier ADC Converter

Nos. 4,000

81. Smoke Detector “ 2,100

82. Flat Metal Pan Sheet 2,850

83. Angle Iron Metres 1,500

84. U-Channel “ 6,500

85. Flat Metal Sheets “ 2,600

86. Mild Steel Bar “ 2,600

87. Mild Steel Sheet “ 6,500

88. Brass Rod “ 4,500

89. Stainless Steel Bar “ 35,000

90. Stainless Steel Sheet “ 29,000

91. Aluminum Bar “ 3,500

92. Aluminum Sheet “ 20,000

93. Moulding Material Mt -

94. Moulding Sand Mt -

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95. Lining Materials Mt -

96. Iron Ore Mt -

97. Copper Scraps Mt 450,000

98. Steel Scraps Mt 18,000

99. Aluminum Scraps Mt 142,000

100. Cast Iron Mt -

101. Angle Iron Mts 860

102. U-Channel “ 8,000

103. Mild Steel Pipe “ 10,000

104. Tin Plates “ 145

105. Steel Sheets Metric Tonne 200,000

106. Aluminum Circles/Spouts “ 450,000

107. Springs Pieces 300

108. Rivert Pins Metric Tonne 12

109 Aluminum Profiles Mts 143

110. Steel Coil Tonnes 2,307,506

111. Tin Plates Mts 145

112. Steel Sheets Metric Tonne 200,000

113. Steel Coil Tonnes 2,207,506

114. Aluminum Wire Mt -

115. Aluminum Rod Mt -

116. Aluminum Coil Mt 670,000

117. Aluminum Plate Sheet Pieces -

118. Paints/Thinner Ltrs -

119. Aluminum Handles Pieces -

120. Meth Chloride/Silicon Oil Kg -

121. Colour/Staneous Octate Kg -

122. Adhesive Ltrs -

123. TDI/Poly Oil Chem Kg -

124. Coating Kg -

125. Inks Kg -

126. PVC Kg -

127. Tin Free Steel Pieces -

128. Corrogated Carton Pieces -

129. Vanish Litres -

TABLE 2.4: RAW MATERIALS IMPORTED

S/N RAW MATERIALS UNIT OF MEASUREMENT UNIT COST (N) 2006

1. Stainless Steel Sheets 30,000

2. Stainless Steel Mt 500,000

3. Stainless Steel Plate 3,500

4. Mild Steel Sheets -

5. Cast Iron Lengths -

6. Iron Rods Lengths -

7. Ferrous Materials Pieces -

8. Non Ferrous Materials Pieces -

9. Angle Iron Pieces -

10. Electrical Motors Pieces -

11. Gear Box Pieces -

12. Pipes Pieces -

13. Flat Bars Pieces -

14. Electrodes Pkts -

15. Stainless Steel Rod Mt -

10

16. Hot Rolled Coil Mt -

17. Induction Gears Mt -

18 Saw Blade Pkts -

19. Pulleys Pkts -

20. Iron Coil Mt -

21. Petrol Engine Pieces -

22. Diesel Engine Pieces -

23. Medium Carbon Steel Mt 320,000

24. High Carbon Steel Mt 330,000

25. Mild Steel Rod Mt 230,000

26. Aluminum Wire M3 -

27. Aluminum Handles Mt -

28. Aluminum Coil Mt 450,000

29. PVC Mt -

30. Reduction Gears Pieces -

31. Tin Free Steel Kg/Mt -

32. Aluminum Scrap Kg 160.00

33. Grinding Disc No. -

34. Mild Steel Angle Iron Kg 100.00

35. Mild Steel 1-beams Kg 100.00

36. Mild Steel U-channels Kg 100.00

37. Welding Electrodes Kg 300.00

38. Screws Packets 450.00

39. Bolts and Nuts Pieces 8.00

40. Ferro Alloys Mt -

41. Refractory “ -

42. Pig Iron “ -

43. Silicon Kg -

44. Aluminum Alloys “ 30,000/Kg

45. Steel plates Metric tons 115,000.00

46. Steel pipes Metric tons 120,000.00

47. Steel rods Metric tons 100,000.00

48. Angle bars Metric tons 105,000.00

49. Channels Metric tons 100,000.00

50. I – Beams Metric tons 100,000.00

51. H – Columns Metric tons 100,000.00

TABLE 2.5: RAW MATERIALS AVAILABLE LOCALLY BUT IMPORTED SUB-SECTOR: IRON AND STEEL

S/N RAW MATERIALS UNIT OF MEASUREMENT UNIT COST (N) 2006

1. Electrode Pkts 1200

2. Nuts & Bolts Mt From N5.00

3. Iron Rods Mt 1100

4. Flat Sheets M2 5500

5. Flat Bars Lengths 800

6. Mild Steel Plate M2 3500

7. Galvanized Steel Plate M2 3500

8. Stainless Steel Plate M2 3500

9. Channel Angle Iron M2 3500

10. Industrial Motors Pieces 15000

11. Reduction Gears Pieces 15000

12. Saw Blade Pieces 200

11

13. Pulleys MM 2500

14. Angle Iron Lengths 600

15. Aluminum Coils Mt 670,000

16. Stainless Steel Sheets 30,000

17. Stainless Steel Rods Mt -

18 Tin-Free Steel Kg -

19. Cast Iron Lengths -

20. Angle Iron Mt -

21. Electric Motors Pieces 15,000

22. Industrial Motors Pieces 15,000

23. Gear Boxes Pieces -

24. High Carbon Steel Mt 330,000

25. Steel Pipes Mt -

26. Saw Blades Pieces 200

27. Bolt and Nuts Pieces -

28. Hot rolled steel Mt 101,708.00

29. Cold rolled steel Mt 111,587.00

30. Tin sulphate Kg 350.00

31. Colouring agent Kg 250.00

32. Nickel acetate Kg 200.00

33. Aluminum fluoride Kg 150.00

34. Aluminum silicon Kg 260.00

35. Alkaline additive Kg 240.00

36. Hinges and Bolts Pieces -

37. Mild Steel Flat Bars Lengths -

2.4 Specifications of Raw Materials for Iron and Steel Production 2.4.1 Iron ore 2.4.2. Chemical Requirements DIRECT REDUCTION BLAST FURNACE PROCESS PROCESS

Parameters Composition % Fе total 66.8min 63.8+ 54.82++ Fe203 95.5min 88.9+ 74.50++ Fe0 0.5 1.0+ 3.50++ Ca0 0.1 0.15+ 4.0++ Gangue (Sio2+A1203) <2.7 9.60+ 12.0++ Mg0 0.1 Trace+ 1.0++ P 0.003max 0.03+ 0.044++ S 0.003max 0.004+ 0.08++ Loss on Ignition (L.O.I.) 1.2max 0.21+ 43.575++

12

2.4.3 Physical Requirements

DIRECT REDUCTION BLAST FURNACE Parameters PROCESS PROCESS Grain Size 0-8mm 90% 0 – 1mm+25-25mm++ 8-20mm 10% ≤45 30%max (Limit of dedusting system) Moisture Content 10%max Work Index (Grindability) 18Kwh/t at 45 324 mesh 14Kwh/t at 74 200 mesh + Iron Ore Concentrate ++ Lump Ore 2.5 Coke Blend/Coke/By-products BLAST FURNACE PROCESS 2.5.1. Coal blend (i) Chemical requirements Composition% Volatile matter* Moisture total 27.7-30.3 Ash** 5 – 9 Sulphur 10 0.5 – 0.9 (ii) Physical Requirement Vertical shrinkage 5 – 7% Bulk Density 0.69 – 0.96t/m3

2.5.2 Coke (i) Chemical requirements Composition% Volatile matter* Humidity 1.5 Ash** 1.0 Suphur 1.3 1.2 max (ii) Physical Requirements

Strength ISO M40 78 min Abrasion ISO M10 9 min

13

2.5.3 By-Products Gas yield (4600k Cal/Nm3) 320 – 335 Nm3/t coal Ammonia yield 1.5 – 2.5 kg/t coal Benzene yield 25 – 35g/m3 Sulphuretted Hydrogen 12g/Nm3 Tar yiel 2.6 Oxide Pellet/Sinter Parameters DIRECT REDUCTION BLAST FURNACE PROCESS PROCESS 2.6.1 Chemical Requirement Composition% Oxide pellet Sinter Fetotal 66.8 min 52.7 SiO2 – Al2O3 < 2.7 10.43 CaO 1.6 – 2.0 12.09 MgO 0.04 – 0.1 2.12 P 0.030 max 0.036 S 0.004 max 0.011 Basicity 0.6 – 1.0 1.36 Fe203 95.8 min 60.29 Fe0 0.3 13.55 2.6.2 Physical Requirement Cold Compression Strength 3450N/Pellet min Tumble Index (6.3 – 19mm) 93%min Abrasion Index ( - 1mm) 5% max Grain Size 9mm – 15mm 95% min 15mm – 19mm 1%max 6.3mm – 9mm 4% max < 6.3 mm Nil 2.7 Limestone/Dolomite

Parameters DIRECT REDUCTION BLAST FURNACE PROCESS (EAF Route) PROCESS (BOF Route) 2.7.1. Chemical Requirement Composition%

CaO 53.0 min 53.0 31.02+ R2O2 = Al2O3 + Sio2 3.0 max - 4.33+ MgO 0.6 max 0.64 20.76+ P - 0.013 0.013+

14

S 0.03 0.052 - Fe total - 0.15 0.20+ Fe2O3 - 0.21 0.28+ MnO - 1.81 0.005+ Humidity (0.5% max in dry season) 5% max in wet season 2.05+ Loss on lgnition (L.O.I) 43.76 43.575+

2.7.2 Physical Requirement. Grain Size Grain Size 25 – 60mm 100% 25 - 50mm 25 - 50mm+ 25 – 55mm 90% 0 - 80mm 0 - 80mm+ At Kiln inlet (sinter plant) (sinter plant) <25mm (fines) 5% Hardness Coefficient - - 7% Bulk density - - 1.40 t/m3

Dolomite EAF - Electric Arc Furnace BOF – Basic Oxygen Furnace 2.8. Specifications for Foundry Molding Sands. 2.8.1. Silica Sand (i) Chemical Properties Composition % SiO2 9

Fe2O3 0.6 Al2O3 2.0 CaO = 0 MgO = 0 SO3 = 0 Melting Loss 0.7 PH 7 (i). Physical Properties Granulometry Particles 20 microns = 3% to 6% Fineness No. A.F.A. = 60 to 66 (RO-TAP Strainer) Distribution on strainer = More than 80% on strainer

15

50 – 70 and 100 14000C 28.2 Zircon Sand (i) Chemical Properties Composition% ZrO2 60 SiO2 30 Al2O3 3 Fe2O3 1 L.O.I. 2 2. Physical Properties mesh sizes 0.25 – 0.5mm 0.5 0.10 – 0.25mm 98.0 0.10mm 1.0 Sintering temp. 14000C mm 2.8.3 Chromite Sand (i) Chemical Properties Composition% Sio2 0.8 Al2O3 1.3 Cr2O3 42.5 Fe2O3 47.0 (ii) Physical Properties Particle Size 0.13 – 0.60 mm 90 Sintering temp. 12500C. 2.8.4 Bentonite Chemical Properties Composition % SiO2 40 - 45 R2O3 (Al2O3 + Fe2O3 + Mn2O3) 23 - 28 CaO + MgO 6 - 8 H2O 10 - 15 L.O.I 17 - 23 Montimorillonite 70 - 75

16

2.8.5 Mould Character ties (i) Physical Properties Green Compression Strength 8.50 - 9.50 N/Cm2 Splitting Strength 1.50 - 1.70 N/Cm2 Dry Compressive Strength 19.00 - 21.00 N/Cm2 Moisture (Compactability) 45% Hardness >75 Permenbility 150 - 180 Cm3/Min (ii) Chemical Requirement Composition % MgO 57 - 58 SiO2 2 - 4 Al2O3 4 - 6 Fe2O3 9 - 10 CaO 2 - 4 MnO 0.3 - 0.7 R2O3 10 - 11 LOI 10 - 11 (iii) Physical Requirement Grain size >2000SSA Sintering temperature 15000C Sticking temperature 14500C

2.9 Investment Opportunities in the Sector The Iron Steel industries operated at very low capacity utilization (0-5%) with the major industries (ASCL & DSC) not producing at all. It was observed that the main products of metal fabrications and manufacture sub-sector were doors and windows. For any meaningful increase in subsectoral capacity utilization, ASCL and DSC must statistically increase their capacity utilization up to 45%. However emphasis should be on the development and production of flat and alloyed steel which if fully developed would encourage greater activity in the foundry, metal (manufacture, and fabrication) sub-sectors, etc. Table 2.6: Some of the additional industries needed to make the existing industries self reliance are

presented as follows:- Raw Materials Estimated Planned

Production /annum Estimated Capacity of Existing Industries.

Estimated Capacity of Additional Industries

i) Iron ore concentrate

9,000,000

2,500,000

3 units of large scale capacity of 2,500,000 tons/annum. 1 unit of capacity 2,500,000 tonnes/annum already in place but yet to start

17

ii) Iron casting iii) Steel casting iv) Flat steel sheet v) Alloy steels vi) Steel forgings vii)Refined zinc viii) Aluminium ix) Tin flat sheet

200,000

100,000

10,000

100,000

100,000

10,000

200,000

3,000

40,000

10,000

0

0

5,000

0

0

0

production. 4 units of medium scale plants of capacity 50,000 tonnes/annum. 9 units of small scale plants capacity 5,000 tonnes/annum. 2 units of medium scale plants of capacity 5,000 tonnes/annum. 5 units of medium scale plants of capacity 20,000 tonnes/annum. 10 units of small scale plant capacity 10,000 tonnes/annum. 1 unit of medium scale plant capacity of 10,000 tonnes/annum. 1 unit of medium scale plant capacity of 200,000 tonnes/annum. 1 unit of small scale plant of capacity 3,000 tonnes/annum.

2.10 Research and Development in the Sector

The utilization of Research and Development as a veritable tool for the growth of this important sector has not been embarked upon by most of the stakeholders. Thus, the traditional method of design and fabrication of proto type process machines and equipment. The inability of the promoters to recognize the importance of research and development is informed by inadequate knowledge/lack of basic training in their professions, financial constraints, cultural disposition and long gestation period between the application and actualisation of the research findings as captured during the analysis of the received questionnaires.

There has been belated attempts by some of the promoters to embark in rudimentary research and development in recent times, especially in the in the south West Zone. Thus, eleven (11) respondents out of 46 indicated that they conducted research and development, ranging from the design and fabrication of process machines, veneering of steel doors, reflex shadow forming to design and evaluation of machinery. Periodic workshop and seminars should be organized to sensitze stakeholders on recent scientific findings in the country.

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Recommendations

1. Regular training/workshop on modern fabrication techniques and technology transfer;

2. Regular supply of electric power and marking alternative energy source such as LPFO, gas, biogas, HPFO very affordable;

3. Removal of inherent bottle-neck to bank loan; 4. Proactive political will in project implementation viz: timely completion of

Ajaokuta steel complex, Itakpe Iron Ore, Aluminium smelting and ban on export of aluminium scraps and copper scamps;

5. Transfer of research and development findings to the sector and setting-up R&D centres in each of the geo-political zones.

6. Ban on import of similar goods produced in Nigeria 7. Reduction of tariff (example removal of the additional increase on VAT); 8. Abolish multiple taxation and encourage tax incentives; and 9. Increased patronage of products from government and private organization.

2.11 Challenges and Opportunities Based on the analysis of the collected questionnaires, most of the problems in the sector were related to the following items: Raw materials Main raw materials as listed in the Annex are available but getting costlier by the day because they are all imported. The capacity to produce some of them locally is available but not being put to use due to import dependent syndrome Infrastructure The state of infrastructure – electricity, water, roads, etc is very poor and frustrating in the sub-sector. Operation and technology Most of the respondents use inadequate tools and methods in their operations. The technology in practice at the plants is significantly outdated. Thus efficiency is very low and product quality doubtful in some cases. The main problem here is capacity building. Equipment and machinery Due to low funding, most of the respondents lack modern equipment that aid engineering work. This affects the quantity and quality of their products.

19

Finance Though this is a serious problem of the sector, we believe that unless where a – c above are addressed, any financial intervention will yield less than optimum success. Consequently, any intervention in direction must be preceded by serious and comprehensive capacity building. Political climate This does not pose much threat to operators. Most of them are apolitical. They think and breathe on their business. Government reform policies The sector is yet to feel the impact of the policies in terms of lower cost of doing business, high local patronage particularly from the public sector or capacity building. Power supply Iron and steel business relies so much on electricity for heating, melting, cutting, fabrication etc. Operators in the zone are seriously under-supplied with power. PHCN supply is erratic and unreliable while the cost of providing alternative power source continue to rise all the time. Cost of raw materials More than 90% of raw materials used in the iron and steel and foundry sub-sector are imported. Most of them are however obtained locally through direct importers who ensure that these products are highly priced. A good number of operators are not performing optimally because of the continuous rising cost of raw materials and inputs. Executive capacity It was observed that most of the respondents do not have the required skilled and experienced workforce to drive their vision. They are populated by low class but talented workers whose skills and expertise fail when intricate and complex problems show up. There is great need to upgrade the capacity of workers in the sub-sector.

2.12 Government Policies affecting the Sector 1. Beneficial Policies

* Importation of capital goods – equipment and accessories are on zero duty. * Export of finished good attracts Export Expansion Grant of up to 45% of values of

products exported. * Metal scrap export has been banned.

2. Adverse Policies

Scraps are still being exported illegally

20

Clearing process is yet to be shortened

Cheap iron rods are imported which drive local producers out of business.

Local fabricators of equipment and machinery are not protected from cheap imports.

2.13 Conclusion The iron and steel sector is fundamental to the development and growth of the economy. It is therefore, imperative that the sector should not be allowed to deteriorate further. Obviously, the fall of the sub-sector will have a “falling effect” on such sub-sectors as real estate, automobile, furniture, simple machine, construction, basic office equipment, marine and many others. We therefore recommend its resuscitation and nurturing in order to benefit maximally from the sub-sectors.

2.14 Recommendations

a. Efforts should be made by Government and its agencies to encourage local development of needed raw materials in order to reduce cost of inputs and ultimately create market for local fabricators and other operators.

The steel plants at Ajaokuta, Aladja, Oshogbo, Jos etc should be made to work by putting pressure on the concessionaires. Those that are yet to be privatized should be put to the market soonest. The Iron Ore Plant at Itakpe should be streamed to feed the rolling mills.

b. Production capacities i) The production capacity in the sub-sector is very low. In order to improve on this, the

operators should be trained and mentored; ii) Locally-fabricated machines should be patronized by Government. iii) Financial institutions should be encouraged to provide easier access to funds.

c. Research and development

Research institutions should be refocused to accord high priority to commercialization. a) Finance

21

While many respondents have installed equipment, they lack the necessary working capital to operate at optimum level. Thus, there is need to design a policy that attracts finances to local fabricators and foundries. b) Training

d. There is need to design a training programme for this sub-sector. Leading operators should be co-opted as facilitators in the training programme.

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CHAPTER THREE

CHEMICALS AND PHARMACEUTICALS

3.1 Introduction The chemicals, cosmetics and pharmaceuticals sector was dominated by multinational companies in the pre-independence period and up to the 1970’s. The major players in the sector included Glaxo, Pfizer, Sterling, Wellcome and PZ. By 1980, the sector witnessed phenomenal growth due mainly to Nigeria’s economic growth occasioned by the oil boom. This led to the establishment of more industries such as Smithline, Beecham, Afrab Chem, Vitabiotics, May and Baker, Ranbaxy, Bayer, Hoechst e.t.c. With the indigenization decree of 1978, which required that 60% of the shares owned by multinational companies be retained by Nigerians, many multinational companies were affected and by the mid 1980’s when the Structural Adjustment Programme (SAP) was introduced, most of the companies sold their stakes. However, some of the multinational companies are still operating in Nigeria. During these periods average capacity utilization fluctuated between 50% and 75% but it is currently below 50%. The low capacity utilization could be attributed to a number of factors amongst which were shortage of petroleum products, scarcity of local raw materials, erratic power supply, high interest rate, low purchasing power, devaluation of the naira, e.t.c. The chemicals, cosmetics and pharmaceuticals sector consist of the following sub-sectors:

- Agrochemicals and fertilizers; - Basic chemicals; - Automotive and Dry cell Batteries; - Candles and crayons; - Cosmetics and toiletries; - Printing and writing inks; - Insecticides, aerosols and pesticides; - Petroleum and Petrochemicals; - Pharmaceuticals; - Safety matches; - Soaps and detergents; and - Paints and allied products.

The previous publications covered these 12 sub-sectors. However, in 2006 only 3 sub-sectors namely Agro-chemicals and fertilizer, pharmaceuticals and soaps and detergents were covered in the survey. Consequently, this synthesis will focus on raw materials sourcing in these sub-sectors.

23

3.2. Raw Materials Requirements and Sourcing The raw material requirement for these sub-sectors are presented in Tables 3.2.1 and 3.2.3 respectively. The 2006 survey revealed that the demand for most of these raw materials were not met locally. However, as compared to the previous exercise, the per centage utilization of most of the raw materials increased even though the demand for the raw materials were not met locally. Table 3.2.1: Capacity Utilization of Raw Materials: Soap and Detergent Sub-sector

S/N Raw Materials National

Demand MT

Percent Utilization Average

utilization for this

survey

Percent

utilization from last

survey

2003 2004 2005 2006

1. Oils and Fats 1,200,000 51.8 62 66.5 66 58.68 57.47

2. Caustic soda 124,000 718 76 78 78 75.95 70.57

3. Sodium silicate 147,000 33.5 42 46 45 41.63 33.67

4. Industrial salt

(chloride)

105,000 47.5 51 52.5 60.5 52.88 47.45

5. Glycerin 30 26.2 25 25 26 25.55 26.17

6. Dyes (pigments) 8,540 250 42 41 41 37.45 25.82

7. Kaolin 56,000 25.7 86 86 92 74.93 35.65

8. EDTA 30 43 43.5 45 46 44.45 45.27

9. Perfume 163,184 88.9 86 86 90 87.73 88.9

10. Magnesium sulphate 4.1 80 70 70 62 70.50 79.57

11. Flush/soap stock 300 60.3 71 72 75 71.15 60.32

12. Sulphuric acid 24.012 66.5 71 72 75 63.40 71.45

13. Sodium carbonate 14,629.07 66.6 65 62 60 63.40 71.64

14. Sodium carbonate 82,000 3.2 40 56 62 40.30 20.9

15. Sodium toluene (sulphnate)

1,800 24 42 40 36 35.50 28

16. Sodium carboxyl

methyl cellulose

1,800 46 42 47.93 66.2 33.4

17. Optical brightening agent

1,200 4.7 46 56 42.93 38.7

18. Sodium Tripoly phosphate (STPP)

165,960 16.7 46 42 56 42.93 38.7

19. Marble dust 150 27.8 87 42 82 83.45 70.5

20. Phosphoric acid 12.6 80.8 42 84 41 35.43 38.1

21. Titanium dioxide 1,200 16.7 35 42 24 26.25 33.3

22. Nervan acid 2.7 20 42 26 40 51.00 82.9

23. Tinpal 2.7 80 30 42 32 22.23 30.1

24. Calcium carbonate 900 16.9 86 20 82 30.73 72.2

25. Fuller earth 432 68.9 70 86 70 69.75 72.2

26. Hydrochloric acid 750 69 46 70 43 40.56 50

27. Ferric chloride 150 33.3 20 40 35 18.90 59.5

28. Aceto Diphosphoric

Acid (ADPA)

2.7 66.7 70 24 62 67.18 72

29. Sulphur 120,000 33.3 46 70 72 52.83 33.3

30. Sulphuric Acid

(sodium alicyclic Benzene sulphate)

140,000 55.6 50 60 60 37.40 51.9

24

31. Pure petroleum jelly 10 42.9 42 64 43 94.23 29.9

32. Glycerol 30 50 48 46 46 74.5 50.00

33. Ethanol 3,250 50 46 52 48 40.13 30.00

34. Active Detergent

Paste (ADP)

25,500 92.9 96 46 92 41.55 89.2

35. Nivolak 0898 4,500 50 82 96 80 46.1 51.6

36. Fatty Acids 125 38.5 40 86 41 51.30 35.1

37. Colourant 220 40.2 38 41 46 69.55 39.8

38. Dxtrin 8.4 42.4 48 42 46 38.90 46.8

39. Talc - 45.2 56 48 52 68.13 42.7

40. White tallow 25,000 22.2 90 52 80 34

41. Photine 172.8 38.6 40 86 39 36.7

42. Soda Ash Light 40,000 62.5 68 38 70 62.9

Table 3.2.2: Capacity Utilization of Raw Materials: Agro-Chemicals and Fertilizers

S/N. Raw Materials National Demand

(MT)

Average Percent Utilization

Present Survey

Average Percent

Utilization Last MTF

Survey

1. Alumina (hydrated) 12,400 45.8 45.8

2. Amproluim 21.4 49.9 45.9

3. Bone meal 2,525 72.2 69.2

4. Breeder mix 1200 54.7 51.9

5. Brewers spent grains 1300 52.8 45.9

6. Broiler premix 1400 48.2 45.9

7. Chick premix 1200 72.3 70.1

8. Coating oil 900 62.9 62.9

9. Copper oxide 4200 80.1 79.9

10. Cotton cake 5800 78.9 69.9

11. Fish meal 5209 72.4 63.7

12. Furazolidone 5 43.2 41.6

13. Groundnut cake 42,000 48 18.0

14. Grower premix 1000 49.2 45.8

15. Kaolin 7200 74.2 69.9

16. Layer premix 2050 84.2 78.9

17. Lime 200 74.5 71.3

18. Limestone 210 82.5 78.9

19. Lysine 1800 68 71.3

20. Maize 78,000 78 78.4

21. Maize offals 14,000 92 61.0

22. Meat meal 1000 92.5 71.9

23. Mentholine 2050 61.2 88.3

24. Methionine 40 68.1 91.5

25. Nitrovine 4.5 52.4 99.9

26. Oxytetracycline 2.8 43.4 67.5

27. Oysershell 4200 54.5 51.3

28. Palm Kernel Cake 5412 92.2 39.9

29. Phosphate rock 2,000 23 49.9

30. Phosphoric acid 2500 5 72.9

31. Potash 16500 84 81.8

25

32. Rice 50 92 89.6

33. Rice shaft 7200 93 69.8

34. Sodium chloride (salt) 520 84.5 78.9

35. Sorghum 14,000 95.6 94.0

36. Soyabean 42000 98 93.1

37. Spent grain 62000 98.9 98.5

38. Sulphur 19,200 79.3 79.3

39. Vitamins/protein/Mineral/Conc

entratetes

6214 98.5 78.5

40. Wheat offal/Brain 7200 92.4 89.9

41. Yeast 5 54.2 45.9

Table 3.2.3: Capacity Utilization of Raw Materials: Pharmaceuticals Sub Sector

S/N Name of Raw Materials

National Demand MT

% Utilization Average % last

MTF Survey

Utilization Present

survey 2004 2005 2006

1. Paracetamol 7332.5 67.7 87.2 88.5 57.5 81.1

2. Ascorbic acid 1006.4 83.2 75.2 88.3 70.6 82.2

3. Phthalyl sulphathiazole

955.0 44.1 46.4 46.3 33.7 45.6

4. Promethazine 100.1 43.1 43.6 56.2 47.5 47.6

5. Sulphamerazine 12.3 33.6 34.1 35.2 26.2 34.3

6. Sodium dihydrogen phosphate

50.8 46.1 47.2 50.6 25.8 47.9

7. Sodium sulphite (anhydrous)

18.6 45.2 48.1 55.2 35.7 49.5

8. Lactose 817.3 50.3 50.0 53.6 45.3 51.3

9. Ammonium chloride 200.2 92.5 90.3 88.1 88.9 90.3

10. Chloroquine phosphate

2635.2 84.0 84.2 89.9 79.6 86.0

11. Metronidazole

benzoate

44.9.7 66.0 68.1 76.6 60.3 70.2

12. Pregelatinized maize

starch

201.7 88.6 83.7 89.8 71.5 87.4

13. Granulated sugar 30070.0 79.2 78.1 79.8 71.6 79.0

14. Aspirin 716.8 45.2 35.5 36.1 20.9 38.9

15. Sodium benzoate 31.4 32.0 28.1 38.0 28.0 32.7

16. Benzoic acid 320.6 84.3 72.5 87.7 66.2 81.5

17. Lemon oil 156.3 48.1 46.9 52.6 35.6 49.2

18. Propylene glycol 927.6 44.0 42.0 46.1 38.7 44.0

19. Peppermint oil 80.3 44.5 56.1 88.6 70.5 63.1

20. Veegum 600.6 55.5 50.1 42.1 38.1 49.2

21. Orange oil (Terpenless)

875.0 43.1 50.0 41.0 33.3 44.7

22. Ethanol 96% 1125.7 84.2 84.8 90.1 82.9 86.4

23. Grape extract 622.1 36.7 38.3 43.5 30.1 39.5

24. Calcium glycerophosphate

30.2 76.8 71.5 72.6 72.2 73.6

25. Dextrose 15242.0 86.2 84.4 88.7 72.2 73.6

26

monohydrate

26. Vitamin D3 beadlets 100.5 56.2 56.1 76.3 50.0 86.4

27. Acacia gum 2125.4 90.1 88.1 91.1 57.5 62.9

28. Silicon dioxide 300.6 80.6 82.7 88.1 72.0 89.8

29. Kaolin 1002.0 34.6 42.0 63.3 33.3 83.8

30. Corn starch 637.2 50.2 56.1 58.4 51.9 46.6

31. Folic acid 67.8 42.0 48.3 49.4 29.9 54.9

32. Thiamine HCI 100.6 52.8 60.8 60.1 50.0 46.6

33. Riboflavin 180.1 85.0 56.2 58.0 50.0 57.9

34. Nicotinamide 257.0 81.6 94.2 90.8 89.1 66.4

35. Chlorpheniramine 500.7 65.7 76.2 78.4 51.5 88.9

36. Aspartame 300.7 35.8 33.4 43.3 35.1 73.4

37. Magnesium trisilicate 1867.4 73.1 60.9 72.5 39.8 37.4

38. Magnesium carbonate 5214.1 64.2 62.1 68.5 46.8 68.8

39. Sodium bicarbonate 5612.7 50.0 61.6 58.3 42.7 64.9

40. Microcrystalline

cellulose

500.6 86.5 96.7 90.4 34.0 56.6

41. Magnesium stearate 2216.1 72.6 73.3 84.9 36.7 91.2

42. Penicillin potassium 50.3 68.4 72.5 64.2 62.9 76.9

43. Gentamicin sulphate 102.2 53.2 50.6 56.6 57.3 68.4

44. Benzoic acid 69.2 40.6 59.2 68.1 49.5 53.5

45. Sulphur 235.2 64.8 71.249.8

59.7 60.5 55.9

46. Methyl salicylate 331.0 60.1 53.0 66.4 46.1 65.2

47. Clotrimazole 85.6 54.0 55.6 55.4 48.1 58.8

48. Tioconazole 101.1 50.0 84.5 60.1 58.8 54.1

49. Clotrimazole 80.5 72.1 96.5 80.0 34.6 55.2

50. Neomycin sulphate 3032.6 90.2 82.6 96.8 35.8 78.9

51. Prime thamme 12322.3 53.2 55.2 81.7 65.3 94.5

52. Sodium chloride 518.0 40.6 75.6 60.1 61.9 81.6

53. Dextrose

monohydrate

2652.0 64.8 42.4 82.1 45.2 59.8

54. Sodium chloride 822.3 60.1 31.4 35.1 45.7 79.4

55. Potassium chloride 625.1 54.0 72.9 36.5 23.9 37.0

56. Polyvinyl-pyrolidone 627.4 50.0 88.6 66.0 54.1 36.8

57. Ammonical lead 825.0 72.1 60.1 92.7 57.8 73.1

58. Leadoxide 311.5 90.2 67.1 59.2 79.9 91.9

59. Microcrystalline powder

217.2 80.5 67.1 52.6 54.6 58.3

60. Talcum powder 89.3 64.2 52.1 64.3 34.1 54.9

61. Acetaminophem 640.0 80.5 64.9 72.4 45.2 55.2

62. Chloroquine sulphate 18.0 33.6 30.0 33.1 45.2 65.5

63. Glucose 14.2 42.5 35.9 44.3 34.1 31.1

64. Ferric ammonium Citrate

184.9 80.5 30.2 32.0 41.1 40.3

65. Diphenyl hydrazine

HCL

480.3 94.5 50.1 54.5 19.9 31.1

66. Diphenyl hydramine HCL

2680.0 55.6 84.2 84.0 56.9 40.3

67. Tetracycline powder 1100.3 45.2 72.4 73.0 45.9 32.4

68. Real liver extract 660.1 49.2 65.6 70.2 56.7 49.6

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69. Tincture of auranthe 191.8 59.2 70.2 70.6 29.5 81.0

70. Oleum morrhue 130.2 30.2 80.5 82.6 34.7 70.6

71. Styroper 80.3 40.6 62.4 60.1 45.1 68.3

72. Acctaminophen 48.4 35.0 42.4 40.5 49.8 70.3

73. Sodium hydroxide 2403.4 44.2 80.1 80.0 34.9 81.2

74. Sodium citrate 50.2 74.8 78.9 79.2 41.0 56.3

75. Citric acid 36.5 66.5 59.4 70.3 29.9 39.6

76. Menthol 32.2 69.2 49.3 50.1 57.7 77.5

77. Sodium carbonxy

methyl cellulose

36.1 70.1 42.6 40.8 34.1 76.9

78. Colour amaranth 18.4 80.5 42.8 64.2 23.9 65.4

79. Essence mixed fruit 192.0 46.5 56.3 60.3 43.0 48.3

80. Sorbitol 135.7 35.9 79.2 84.5 28.8 41.2

81. Niposal 500.8 72.4 70.2 76.4 42.6 45.7

82. Sucrose 72.6 72.6 56.4 60.1 40.3 63.4

83. Polysorbatetween 219.8 66.6 50.0 51.2 51.9 81.4

84. Colour etrazine 300.6 45.6 62.2 60.0 39.9 73.1

85. Copour ponceav 284.1 40.2 55.8 60.1 18.9 54.1

86. F.A.C 61.6 30.1 72.9 70.6 39.9 50.4

87. Sorbic 12.7 64.2 60.0 59.8 23.8 60.9

88. Ampicillin trohydrate 12.5 80.4 82.7 90.6 43.1 55.4

89. Chloroform 16.6 72.8 22.8 40.5 39.9 69.9

90. Iodine crystal 31.3 45.8 49.2 64.5 23.9 59.9

91. Potassium iodide 132.1 50.1 72.2 65.3 46.3 82.1

92. Chloroxylenol powder 86.1 60.5 62.0 60.3 89.9 32.2

93. Calam 5.2 50.2 82.0 79.2 59.9 54.7

94. Zinc oxide 2.6 65.5 42.5 50.0 77.2 72.8

95. Calcium photothenate 62.3 60.1 33.6 33.2 44.9 61.5

96. Vitamin A 861.4 72.9 56.5 48.6 39.1 80.5

97. Banana four 230.3 33.2 82.6 82.6 48.4 43.7

98. Ephedrine hydrochloride

6777.6 50.4 80.5 95.0 45.9 32.3

99. Chroramphenicol powder

380.8 80.9 85.0 90.0 44.5 48.4

100. Phythalysophatiazol 3.4 62.1 30.4 29.8 29.9 81.7

101. Methyl salicylate 26.8 80.4 80.6 72.0 18.9 84.9

102. Turpentine oil 10.3 38.6 72.5 85.9 23.0 85.2

103. Evcalyptos oil 11.4 30.2 70.4 84.0 23.7 75.1

104. Camphor 68.1 40.1 28.6 30.1 18.9 74.7

105. Paraffin wax 88.0 80.0 62.0 10.5 19.7 26.7

106. Petroleum jelly 10.5 79.2 30.1 40.0 18.5 26.8

107. Kaolin 80.6 52.0 62.8 19.5 30.9

108. Pectin 3.4 22.6 70.2 58.9 34.1 53.7

109. Glycerine 26.8 72.5 45.1 50.2 23.5 65.0

110. Methyl hydroxyl benzoate

10.3 66.9 62.8 68.3 44.4 42.9

111. Propyl

hydroxybenzoate

11.4 69.8 30.2 45.4 21.0 68.5

112. Taracids 68.1 21.5 30.4 30.4 16.8 32.8

113. Crosylic creosote 88.0 8.0 28.0 29.3 18.9 27.8

114. Cosein 10.5 22.6 30.5 30.0 45.2 31.2

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115. Borax 18.2 46.2 40.1 42.0 56.8 40.7

116. Chloroxylenol powder 185.4 66.0 18.5 30.2 56.1 25.1

117. Castor acid 121 33.6 45.1 50.2 45.2 42.9

118. Potassium hydioxide 50.6 74.522.8 62.8 68.3 44.4 68.5

119. Terpenol 203.5 22.6 30.2 45.4 21.0 32.8

120. Chlorinated terpene 193.2 28.2 30.4 30.4 16.8 27.8

121. Lactalbumin 64.9 33.2 28.0 29.3 18.9 28.5

122. Yeast extract 89.2 40.1 30.5 30.0 45.2 31.2

123. Amphotericin B 24.3 26.5 40.1 42.0 56.8 40.7

124. Newbern calf serom 17.3 18.5 30.2 56.1 25.1

45.2

Available data from 2006 report revealed that some “key” raw materials, including: kaolin, mineral acids, calcium carbonate (different forms) and talc were required by several other sub-sectors notably, Pulp and Paper, Textiles and Leather, Plastics and Rubber and Petroleum and Petrochemicals. As a result of their versatility, a shortfall in the supply of these “key” raw materials would result in reduced capacity utilization in many industrial sectors. Since these materials enjoy a wide domestic market and occur locally in the form of mineral deposits, development and large scale exploitation of the minerals and their processing into industrial feedstocks would be of tremendous benefit to increase capacity utilization in many sectors of industries. 3.2.1 Raw material sourcing As in previous years, most of the raw materials required by these sub-sectors were imported. Only a marginally small fraction is sourced locally. The distribution of groups of the raw materials according to source (that is local, partly local and partly imported) is shown in Tables 3.2.1, 3.2.3 and 3.2.4 in the 2006 report. 3.2.2 Imported raw materials These raw materials represent those consumables the country cannot develop for now. In this category are materials like pharmaceutical kaolin, pharmaceutical starch, the mineral acids, sulphuric acid, sodium hydroxide, plastic derivatives and polymer based organic compounds, and organic solvents. The inability to produce these materials arose from the inadequate manufacturing infrastructure of the basic chemicals sub-sector and the non-completion of the petrochemical plants. 3.2.3 Raw materials (partly sourced locally) These raw materials are so categorized that the country has the natural resources for their production, yet are still being imported. What is required is to develop the country’s technological capability through better infrastructure and human resource development.

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3.2.4 Raw materials (locally sourced) RMRDC survey reports have shown that a lot of the chemicals on the locally sourced column can be locally developed to substitute the imported ones. The problem is the fact that the country still lacks the technology required for their production to the requisite industrial specifications. Tables 3.2.1,3.2.2 and 3.2.3 in the 2006 report show that several raw materials which are presently imported can be fully sourced locally. The existing as well as potential raw material sources for each of the 3 sub-sectors under consideration are briefly examined. 3.2.5 Raw materials specifications for the sector In an effort to assist raw material suppliers to deliver raw materials of the right quality and specifications, RMRDC compiled the first publication titled “Raw Materials Utilized by Nigerian Industries” in 1996. The publication contained the various raw materials and the specifications for the various products being produced from these raw materials. The 2005 edition of the publication was based on the ten sectors. The specifications for the major raw materials in the 3 sub-sectors covered in this report are presented in subsequent tables. Agro-Chemicals and Fertilizers

(1) Alumina, Hydrated % Al203 65 % Si02 0.01-0.02 % Fe203 0.01-0.02 %Ti02 0.003 % P205 0.001 % CaO 0.01 % 2nO 0.001 % Na2O total.. 0.3-0.4 % Na2O soluble 0.005-0.03 % Moisture content 0.2 % particle size distubation larger than 106 microns 10-20 106-63 microns 30-50 63-45 microns 10-35 Smaller than 45 microns 20-40 % whiteness (457nm) 80 Density (g/cc) 2.4 Bulk density kg/m3 1200

(2) Calcium carbonate

% Si02 2.49 % Fe203 2 max

30

% Mgo 6 max % CaCo3

(3) Limestone

% cako3 90 max % Sio2 5 max % Fe203 2 max % Mg0 6 max

(4) Phosphate (for fertilizer production) % Moisture 0.53 % P205 36.45 % CaO 51-64 % P203 2.88 % Fe203 1.34 % AI203 1.54 % C02 1.52 % F 3.97 % Total Chlorine Traces % Mg0 0.35 % Si02 3.25 % S03 0.37

(5) Sulphur

% moisture 0.37 % Sulphur 99.93 % organic matter 0.037 % Ash 0.033 Ti02 and others Traces

PHARMACEUTICAL (1) Ascorbic Acid

Appearance - A white or almost white crystalline powder or colourless crystals, discoloured on exposure to air and moisture

- Freely soluble in water and practically soluble in other solvents. Melting Point (oc) - about 190 with decomposition Specification optical rotation +20.5 – 21.5 Oxalic Acid - opalescence in sample solution should not be more than that in the reference solution.

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Heavy metals - Not more than 10ppm Sulphated Ash - Not more than 0.1% % Assay - 99.0 – 100.5

(2) Aspirin (Acetyl salicytic acid) Characteristics colourless crystals on a white crystalline powder. Odourless or almost odourless Solubility Slightly soluble in water ethanol, chloroform and ether, clarity and colour of solution, clear and colourless. % Sulphated Ash not more than 0.1 % ASSAY 99.5 – 101.0

(3) Amphicilin trihydrate Characteristics A white crystalline powder, odourless or almost odourless. Solubility Slightly soluble in water, practically insolable in ethanol (9.6%) in chloroform, ether and in fixed oils. % moisture W/W. 12 – 15 % Assay 96 – 100.5

(4) Benzoic Acid

Characteristics colourless crystals or a white crystalline powder, Odourless Solubility slightly soluble in water, boiling water freely soluble in ethanol (96%), in chloroform, ether and fixed oils. Heavy metals (pb) Ippm Halogenated compounds and halides 300ppm % Sulphated Ash not more than 0.1 % Assay 99.0 – 100.5

(5) Chloroquine Phosphate

Description A white or almost white hygroscopic, crystalline Powder Solubility freely soluble in water, slightly soluble in alcohol, ether

and methanol. pH 3.8 – 4.3 Heavy Metals Not more than 20ppm % Moisture Not more than 2.0

32

% Assay 98.5-101.0 calculated with reference to anhydrous.

(6) Citric acid anhydrous Characteristics Colourless crystals or a white crystalline powder Solubility Soluble in 1 part of water and in 1.5 parts of ethanol (96%), sparingly soluble in ether. Heavy metal not more than 10 ppm % sulphated Ash not more than 1-0 % Assay 99.5 – 101.0

(7) Clotrin mazole Characteristics white to pale yellow crystalline powder, odourless. Solubility insoluble in water, ethanol, chloroform and ether Clarity and colour of solution clear. % Sulphated Ash Not more than 1.0 % Assay 98.5 – 100.5

(8) Folic acid Characteristics yellow to orange Crystalline powder ordourless or almost odourless Solubility insoluble in water and in most organic solvents It dissolves in dilute acid and alkaline solutions % sulphated Ash not more than 0.2 % Ash 96.0 – 102.0

(9) Granulated sugar Appearance A white crystalline powder or lustrous, dry colourless or white crystals Solubility very soluble in water, slightly soluble in alcohol. Acidity not more than 0.3ml of 0.01m sodium hydroxide is required for neutralization. Specific optical rotation +66.3-67.00 Loss on drying not more than 0.1% Microbial count Total Bacterial count: NMT 1000 Total Mould count: NMT 100 Total Yeast count: NMT 100 Coliform count, salmonella sp. Staphylolocus sp. And Pseudomonas spp. Absent

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(10) Magnesium trisilicate Characteristics white powder Solubility soluble in water, ethanol and glycerol, insoluble in chloroform and ether pH 2.7 – 3.3 clarity and colour of solution clear and not intensely coloured lead (pb) 2ppm % sulphate Not more than 0.1 % Assay 98.5 – 101.5

(11) Metronidazole benzoate Appearance white or slightly yellowish crystalline powder or Flakes Solubility practically insoluble in water freely soluble in methylene chloride soluble in acetone, slightly soluble in alcohol, very slightly soluble in ether Heavy metals not more than 20 ppm % Assay 98.5 – 101.0 calculated with reference to the dried substance.

(12) Micro crystalline cellulose

Synonym avicel pH 101 Appearance a white or almost white fine granular powder Solubility practically insoluble in water, acetone, ethanol,

toluene and in dilute acids and in a 50g/l solution of sodium hydroxide. 50mg in 10ml ammonical solution of copper tetramine dissolves completely leaving no residue

pH (supernatant) 5.0-7.5

Ether soluble substances the residue weighs not more than 5.0mg(0.05%) Water soluble substances the residue weighs not more than 12-5mg (0.25%) Starch no blue colour is produced Heavy metals not more than 10.0ppm % loss on drying not more than 6.0 % sulphated Ash not more than 0.1 Microbial count Total Bacterial count: NMT 1000 Total Mould count: NMT 100 Total Yeast Count: NMT 100

34

Coliform count, salmonella sp. Staphylococcus sp. and Pseudomonas sp. Absent

(13) Nicotinamide Characteristics colourless crystal or a white crystalline powder, odour faint and characteristics. Solubility soluble in water and ethanol Lead (pb) 1 ppm % loss on drying not more than 0.55 % sulphated Ash not more than 0.1 % Assay 99.0 – 101.0

(14) Paracetamol

Appearance A white crystalline powder Solubility sparingly soluble in water, freely soluble in

alcohol, very soluble in ether and methylene chloride.

4 Aminophenol Not more than 50 ppm Heavy metals Not more than 20 ppm % loss on drying Not more than 0.5% % sulphated Ash Not more than 0.1 % Assay 99.0 – 101.0 calculated with reference to dried Substance

(15) Propylene glycol Appearance A viscous clear colourless, hygroscopic liquid. Miscibility Miscible with water and alcohol Relative density (at 20oC) 1.035 – 1.040 Refractive index (at 20oC) 1.431 – 1.433 Boiling range 184 – 1890C Heavy metals not more than 5ppm % moisture not more than 0.2 % sulphated Ash not more than 5mg (0.01)

(16) Riboflavin Characteristics yellow to orange yellow crystalline powder Solubility very soluble in water, insoluble in ethanol, acetone, chloroform and ether specific optical rotation 115 – 135o % loss on drying not more than 0.1 % sulphated Ash not more than 0.1 % Assay 98.0 – 101.0

35

(17) Sodium carboxymethyl cellulose Synonym carmellose sodium Appearance a white or almost white, granular powder, hygroscopic after drying Solubility practically insoluble in acetone, ethanol and

toluene. Easily dispersed in water giving colloidal solution.

% chlorides not more than 0.25 Heavy metals not more than 20 ppm % loss on drying not more than 10.0 % sulphated Ash 20.0 – 33.3 % Microbial count Total bacterial count : NMT 1000 Total mould count : NMT 100 Total yeast count : NMT 100 Coliform count; salmonella sp. Staphylococcus sp and Pseudomonas Absent

(18) Sodium benzoate Appearance A white crystalline or granular powder or flakes, slightly hygroscopic Solubility freely soluble in water, sparingly soluble in alcohol (90% v/v) Solution clear and colourless Chlorides not more than 150 ppm Heavy metals not more than 10ppm % loss on drying not more than 2.0 % Assay 99 – 100.5

(19) Sodium bicarbonate Characteristics white, crystalline powder, odourless Solubility soluble in water, insoluble in ethanol Chloride not more than 150ppm Clarity and colour of solution/ clear and colourless Sulphanated not more than 150ppm

(20) Sodium Chloride Characteristics colourless crystal or a white crystalline powder, odourless Soluble in water/slightly soluble in ethanol and glycerol Clarity and colour of solution/clear and colourless Arsenic Not more than 1ppm Lead (pb) not more than 1ppm

36

Iron not more than 20ppm Bromide not more than 50ppm Phosphate not more than

(21) Sodium sulphite (Anhydrous) Formula Na2SO3, 126.0g Characteristics A white powder Solubility Freely soluble in water and very slightly soluble in

alcohol Iron Not more than 10ppm Heavy metals Not more than 10ppm Assay, % 95.0 – 100.5

(22) Sorbic acid Characteristics A white or creamy-white powder. Odour; faint and characteristic Solubility Slightly soluble in water and in fats and fatty

oils, soluble in 10 parts of ethanol (96%) and in 20 parts of ether

Heavy Metals Not more than 10ppm Assay, % 99.0 – 100.5

(23) Sorbitol Characteristics A white crystalline powder, odourless Solubility Practically insoluble in chloroform and in ether Sulphated ash, % Not more than 0.1 Assay, % 98.0 – 1010

(24) Sulphathiazole

Characteristics A white or slightly yellowish, crystalline powder Solubility Practically insoluble in water, slightly soluble in

alcohol, practically insoluble in ether and in methylene chloride

Melting Range, OC 200 - 203 Heavy Metals Not more than 20ppm Sulphated ash, % Not more than 0.1 Assay, % 99.0 – 101.0

(25) Sulphamethoxazole

Formula C10H11N3O3S1 253.3g Appearance A white or almost white, crystalline powder Solubility Practically insoluble in water, slightly soluble in

37

acetone, sparingly soluble in alcohol. Dissolves in dilute solutions of sodium hydroxide

Loss on Drying Not more than 0.5% Heavy Metals Not more than 20ppm Sulphated Ash, % Not more than 1.0 Assay, % 99.0 – 101.0 calculated with reference to dried Substance.

(26) Starch (Maize) Appearance A matt, white to slightly yellowish, very fine

powder which creaks when pressed between the fingers, tasteless.

Solubility Practically insoluble in cold water and in alcohol. Identification A thin cloudy mucilage is formed on boiling with water Foreign Matter Not more than traces of cell membranes and protoplasm are present Loss on Drying, % Not more than 15.0 Sulphated Ash, % Not more than 0.6 Microbial Count, Total Bacterial Count NMT 1000 Total Mould Count NMT 100 Total Yeast Count NMT 100 Coliform Count, Salmonella sp, Staphylococcus sp and Pseudomonas spp Absent

(27) Sunset Yellow Characteristics Orange-red crystals Solubility Soluble in water, slightly soluble in ethanol pH(2% w/v) 4 – 5 Dye content, % Not less than 11.0 Arsenic Not more than 2ppm Heavy Metals Not more than 20ppm

(28) Tartaric Acid Characteristics Colourless crystals or a white, crystalline powder Solubility Soluble in less than 1 part of water and 2.5 parts of ethanol (96%) pH (1% w/v Suspension) 3.5 – 6.0 Sulphated Ash, % Not more than 0.1 Heavy Metals Not more than 10ppm

38

Assay, % 99.5 – 101

(29) Tetracycline Characteristics A yellow crystalline powder, odourless Solubility Soluble in ethanol (96%) and in methanol, sparingly soluble in acetone pH (% w/v Suspension) 3.5 – 6.0 Sulphated Ash, % 0.5 Heavy Metals Not more than 50ppm Assay, % 95 – 100.5 calculated with reference to the dried substance

(30) Zinc Oxide

Characteristics A soft white or faintly yellowish-white amorphous powder, free from grittiness; odourless Solubility Practically insoluble in water and in ethanol (96%). It dissolves in dilute mineral acids Assay, % 99 – 100.5

3.3 Soap and Detergent Sub-Sector

(31) Aluminum Sulphate

Appearance White Crystalline Powder Alumina (AI2O3),% 16 – 18 pH (10% solution) 2.4 Copper 5ppm, max. Cobalt 5ppm, max Arsenic 5ppm, max Iron as Fe2O3 200ppm, max Chromium + Nickel 20ppm, max

(32) Soda Ash for detergent manufacture

Na2 CO3 % 97.5 min. Moisture, % 2.0 max NaHCO3 % 2.0 max Fe, ppm 20, max. Ni + Cr, ppm 10 max Cu, ppm 1 max Ar, ppm 10 max Water Insoluble, % 0.5 max Bulk Density Kg/m3, % Dense 1005 Light 500

39

Sieve (BSS Mesh), % Light R22 nil R60 6 max Dense R14 0.5 R30 35.0 White Crystalline Powder

(33) Soda, caustic (Liquid) NaOH, % 45-50 Na2CO3,% 1.0 max NaCI, % 0.5 max Na2SO4, % 0.05 max Water insoluble,% 0.5 max CIo4, ppm 50 max Fe, ppm 10 max Cu, ppm 1.5 max Ar, ppm 1.0 max Hg, ppm 1.0 max Appearance Clear water – like liquid, free from suspended Matter

(34) Sodium carbonate for soap and detergent Appearance White Crystalline Powder Na2CO3, % 97.5 min Moisture, % 2.0 max Ni + Cr, ppm 1.0 max Cu, ppm 1 max As, ppm 1.0 max Water insoluble, % 0.5 max Bulk density, Kg/m3 Dense 1005 Light 500

(35) Sodium hydroxide Liquid for soap production Appearance Clear water – white liquid free from suspended matter NaOH, % 45-50 Na2CO3, 1.0 max NaCl,% 0.5 max Na2SO4,% 0.05 max Water insoluble, % 0.5 max CI04, ppm 50 max Fe, ppm 10 max Cu, ppm 1.5 max As, ppm 1.0 max

40

(36) Sodium tripolyphosphate (STPP) for detergent manufacture

P2O5, % 57.0 Water insoluble, % 0.1 max pH in 1% Solution, % 9-10 Loss at 130oC, % 1 max Temp Rise TestoC 11.5-14 Na5P3O10, (ortho),% 90 min Na4P2O7,% 6 max Na3PO4,% 2 max Fe, ppm 100 max Cu, ppm 5 max As, ppm 10 max Ca, ppm 100 max Mg, ppm 100 max Sieve (BSS Mesh)%, R60 3 min R 100 90 min R 200 75 min Appearance White Powder

(37) Titanium dioxide for soap manufacture Appearance Very white powder free from foreign particles Purity, % 98.5 min pH, in 10% solution 6.1-6.7 Loss (105oC), % 0.5 max Bulk Density g/ml, 1 Tape 0.42-0.50 50 Tape 0.55-0.65 Lead, ppm 20 max Arsenic, ppm 10 max Sieve (BSS Mesh), % 10 max

The detailed listing of specifications of all the raw materials can be found in the “Handbook on Specifications of Raw Materials Utilized by Nigerian Industries” RMRDC publiction. 3.4 Capacity Utilization Profile 3.4.1 Agro chemicals and fertilizers With the exception of vitamins, mineral concentrates, biocides and herbicides, all other raw materials required for the agro chemicals sub-sector can be fully sourced locally as presented in table 3.1.1 of the 2006 report. It is encouraging to note that the 2006 survey report shows high capacity utilization in this sub-sector, particularly the poultry feed industry. For example, the typical percentage capacity utilization values in the 2007 report for some of the feed raw materials that can be fully sourced locally are as follows: bone meal, 72.2%; chick primex 72.3%; coating oil 62.9%; copper oxide 80.1%, cotton seed cake 78.9%; fish meal 72.4%; kaolin 74.2%;

41

layer premix 84.2%; lime 74.5%; limestone 82.5%; maize 78%; palm kernel cake 92.2%, etc. Although a good fraction of these materials are still being imported, the high capacity utilization is a welcome indication of increased local sourcing of imports in this sub-sector. Infact some items that are presently fully imported such as gammaline base and lindane (technical-benzene hexachloride) can be manufactured locally using a high percentage of local raw materials. 3.4.2: Pharmaceuticals In order to examine the sourcing of raw materials for the domestic pharmaceutical industry many of the raw materials required by the sub-sector have been grouped into five classes. In principle it should be possible to source all the excipients, some of the diluents, additives and active ingredients locally. In practice however, very few raw materials for this sub-sector are sourced locally, and the locally sourced materials could hardly meet more than 10 percent of the industrial demand. Over 40% of the raw materials used in the pharmaceutical industries are still being imported. These include:

i) Solid diluents - dextrose and lactose, cellulose and industrial Salt

ii) Builders - acacia, glucose starch, and mucilage. iii) Disintegrants - starch obtainable from maize, rice, yam,

cassava, and cocoyam. iv) Mineral-based excipients kaolin and bentonite, borax, calamine and

chalk (gypsum). v) Sweetening agents - granulated and liquid sugar and saccharin vi) Flavouring agents vii) Liquid diluents - ethanol, methanol, isoprophyl alcohol,

kerosene and propylene glycol. 3.4.3. Soaps and detergents Oils and fats and caustic soda form the major raw materials for the soap industry. Whereas oils and fats (in particular palm kernel oil and palm oil) are sourced locally, no serious effort, either by Government or private entrepreneurs, is being made to source caustic soda locally. Caustic soda is produced basically from salt (Sodium chloride). Large salt deposits have been suspected at several locations within Nasarawa, Ebonyi, Cross River and Kebbi states. RMRDC and other stakeholders are making efforts in exploitation of the common salt in these locations. Most of the linear alkyl benzene required for detergent production is now sourced locally from the Kaduna Refinery and Petrochemicals Company (KRPC). Even the other raw materials required by the sub-sector are fully or partially sourced locally; these include: calcite, calcium carbonate, ethanol, glycerin, kaolin, marble dust, petroleum jelly, sodium silicate, and starch. Until the local basic chemical industry is better developed several of the chemical raw materials shall continue to be imported.

42

3.5 Potential for Local Substitutes Nigeria is a richly endowed nation. There are potential local substitutes that can be used in the sector and other locally available raw materials that need to be upgraded to meet the quality required for the various industries in the sector. The 2006 survey on the sector identified the following raw materials that could be sourced locally. 3.5.1 Agro-chemicals and fertilizers The raw materials identified in this sub-sector in the 2006 survey were phosphate, limestone, ammonia, nitrogen, urea and ball clay. However, zinc and sulphur were partly imported. Nigeria has the capacity to produce Dextrin, Bone Glue, Gum Arabic, High Fructose Corn Syrup, Fatty acids and essential oils, if necessary funding is made available to commercialize the research results already obtained. Agro-chemicals and fertilizers are valuable inputs into the food security component of the 7 – Point Agenda and Vision 2020 of the present administration. Investment in these areas is therefore very critical. Phosphate deposits have been located in Sokoto and Ogun states. The deposits have been characterized as reported by the Nigerian Geological Survey Agency and Imperial Institute, London. The average P2O5 content which is a major characteristic of both granular and nodular phosphate was found to be 34.5-36.25%10/w. This compares favourably with the 36.6% obtained from phosphate rock imported from Togo. The Federal Super Phosphate Fertilizer Company, Kaduna, is sourcing a major part of its phosphate requirements locally. The only fertilizer company at Onne, Port-Harcourt which used to produce urea and ammonia has been closed down. However, with the privatization of the company, it is hoped that production of urea and ammonia would resume so that local sourcing of these raw materials would improve significantly. The Raw Materials Research and Development Council establishmed an industrial grade kaolin plant located at Gwarzo, Kano state. Kaolin deposits have been found across the country with their chemical compositions and other characteristics identified. Kaolin is used as a filler in the production of fertilizer with an estimated reserve of 2 billion tonnes of kaolin in the Country. More plants need to be established so as to sustain the supply of this input into the production of fertilizer. 3.5.2 Pharmaceuticals Pharmaceuticals can be obtained from natural sources such as plants, animals and microorganisms. They can also be chemically synthesized. However, the major sources of pharmaceuticals are plants. It is estimated that about 25% of the world’s pharmaceutical products are derived from plants. The National Institute for Pharmaceutical Research and Development (NIPRD) Idu, Abuja, has carried out extensive work towards development of local substitutes for imported pharmaceutical raw materials. One of such efforts has resulted in the development of a drug called NIPRISAN ,which is used for the treatment of sickle cell anemia. Similarly the Nigerian Natural Medicine Development Agency (NNMDA), Lagos has documented

43

medicinal plants available for exploitation all over the country. Investors in this sector may avail themselves of these opportunities. Considering the limited capacity of developing countries to exploit medicinal plants, the United Nations Industrial Development Organization (UNIDO) has made available a list of 68 medicinal plants that could be utilized for the production of pharmaceuticals. The complete list of the medicinal plants is presented in the 2006 report (Table 4.15). The survey report of 2006 identified the following pharmaceutical raw materials are available locally – Maize starch, Acacia, Sodium Chloride and Caramel. Other raw materials identified as partially sourced locally were Dicalcium phosphate, Citric acid, Lactose, Calcium Carbonate, Carboxy Methyl Cellulose, Sodium benzoate, Petroleum jelly, Vegetable oil, Ferrous gluconate, Ferrous fumarate, Vitamin B12 and Vitamin C. The survey also indicated that of the 476 identified raw materials in the sub-sector only about 5% is sourced locally. This could be attributed to the sophisticated technology involved in the production of pharmaceuticals. 3.5.3 Soaps and detergents The raw materials for the sub-sector are organic, inorganic base and fragrance/colourants. The major raw materials for the soap and detergent sub-sector are oils and fats, specifically Palm Kernel Oil (PKO), Palm oil, Caustic soda, and Linear Alkyl Benzene. Both Palm kernel oil and Palm oil are produced in abundance in the country. However, caustic soda is imported despite large salt deposits identified at several locations in Benue and Cross River troughs, Ebonyi, Nasarawa, e.t.c. The Linear Alkyl Benzene, which is used in the production of detergent is produced by the Kaduna Refinery and Petrochemicals Company. Other raw materials that could be sourced locally are perfume, essential oils and colourants. For the Palm kernel oil and Palm oil which are sproduced from oil palm tree, there is the need to establish more plantations to replace the ageing ones. It is also imperative to develop improved varieties of the trees using tissue culture and genetic engineering to be able to meet the ever increasing demand for these raw materials. 3.6 Industries Operating in the Sector A total of sixty companies were covered in the sector during the 2006 survey. Six out of this number were in the Agro-chemicals and fertilizer, seventeen (17) were in the pharmaceuticals, thirteen were listed in the soaps and detergents while the rest belong to chemicals sub-sector and research and development institutions. In the 2003 survey a total of 153 companies were covered in the Agro-chemicals, pharmaceuticals and soaps and detergents sub-sectors. Eleven (11) in the Agro-chemicals, forty

44

(40) in soaps and detergents and one hundred and two (102) in the pharmaceuticals sub-sectors. It is evident that about 58% of the companies listed in 2003 have either not been covered or closed down. 3.7 R&D Activities in the Sector Research and development in the chemicals and pharmaceuticals sector is capital intensive. Consequently, companies in this sector, mostly multinationals, conduct their R&D abroad. However, research institutes with mandates relevant to the sector have done significant works in trying to develop local substitutes for imported chemicals and pharmaceuticals. The National Institute for Pharmaceutical Research and Development(NIPRD), Idu, as mentioned earlier developed NIPRISAN for the treatment of sickle cell disorder. Efforts are targeted at the production of other local pharmaceuticals using the Institute’s pilot drug manufacturing facility. Similarly, the National Research Institute for Chemical Technology (NARICT), Zaria, has developed a number of chemicals from local sources. Adequate funding for R&D and linkages with user industry who would commercialise findings is required. 3.8 Recommendations The survey revealed that the wealth of natural resources could be developed into raw materials for the chemical and pharmaceutical industries. Unfortunately, these potentials have not been fully exploited. Most companies have relied heavily on imported raw materials, equipment and spare parts in addition to having low level of R&D based on the observed persistent problems. The recommendations are made under the following sub-headings:

i) Production capacity and products ii) Research and Development iii) Mechinery and Equipment iv) Infrastructural Facilities v) Finance

3.8.1 Production capacity and products

1. Government should sustain the enabling environment created through the increased enforcement activities of NAFDAC and SON to curtail dumping of fake and substandard products.

2. Local manufacturing industries should establish formal relationship with relevant R&D institutions to conduct researches which are necessary to improve the quality of their products.

45

3. Pharmaceutical companies should take advantage of the ban lifted on drugs made in Nigeria by Ghanaian and Sierra Leonean authorities to increase export of their products.

4. The Federal and State Governments should make it mandatory for their various

health institutions operating Drug Revolving Fund (DRF) and service providers on NHIS to procure and use NAFDAC registered essential drugs produced by local pharmaceutical industries.

3.8.2 Research and development

a) Government should envolve policies which will ensure that companies and relevant

research institutes engage in R&D for local raw materials development. b) Research institutes/institutions of higher learning should be adequately funded and

challenged with specific national priority projects to be completed within a given time frame.

c) Companies, research institutes and other relevant institutions should be encouraged to collaborate on research and development of local raw materials.

d) Government should identify areas of technology inadequacies with respect to base metals, plastics and ICT and make policies to address them.

3.8.3 Machinery and equipment

a) The National Engineering Infrastructure should be developed. b) The Scientific Equipment Development Institute (SEDI), in Enugu and Minna,

Projects Development Agency (PRODA), Enugu, African Regional Centre for Engineering Design and Manufacture (ARCEDEM), Ibadan and the Industrial Development Centres and other individual organisations should be upgraded.

3.8.4 Infrastructural facilities

1. Government should as a matter of priority make conscious efforts to improve shortages in power generation, fuel and water supply .

2. Government should facilitate the completion of Inter Modal Transport System to facilitate haulage of industrial goods. In addition, government should improve the facilities in telecommunication to make it more accessible.

3.8.5 Finance

1. A stable value of the naira should be sustained to facilitate strategic planning. 2. Financial institutions should be encouraged to grant medium and long term

loans to industrialists and entrepreneurs to expand and establish industries.

46

CHAPTER FOUR

ELECTRICAL AND ELECTRONICS SECTOR 4.1 Introduction The ever-decreasing socio-economic and industrial activities in the electrical sector have been of major concern to the stakeholders, industrialists, scientists, entrepreneurs and the general public in the past years. In this sector, little or no effort has been made to adopt a strategy of promoting its rapid development. With successive governments, different policies were introduced to reduce dependence on imported electrical and electronic goods/ components. These have however, not been quite successful. The sector was divided into, five subsectors, along the lines of Multidisciplinary Task Force – Electrical and Electronics (MTF-EE) subdivision in 1989, to facilitate enumeration, viz:

a. Electric Bulbs, Lamps, Fittings and Electrical Accessories sub-sector; b. Electronics/Telecommunications Equipment and Gadgetry sub-sector; c. Electrical Instrumentation, Power Control and Distribution Equipment sub-sector; d. Refrigeration, Air conditioning and Domestic Appliances(RADAMA) sub-sector; and e. Wire and Cable sub-sector.

4.2 Raw materials requirement The raw materials used by the industries in the sector are broadly categorized as

a. Primary Raw Materials b. Completely Knocked Down(CKD) parts; and c. Semi-Knocked-Down (SKD) components.

4.2.1 Primary raw materials Some of the primary raw materials are obtained from local sources. These include clay, calcium carbonate, feldspar, adhesives, silica sand, paints, oxygen, PVC compounds, polyethylene, sulfuric acid, sodium chloride, carbon, soda ash, transformer oil, talc, starch, wood, aluminum bar/rod/cast, copper wires and cables, iron rods and bars, and tin. It should be noted that some of these are produced from imported raw materials. Examples include aluminum bar/rod/cast from imported aluminum billets and copper wires from imported copper billets. 4.2.2 Completely Knocked Down(CKD) parts CKD are the simplest components from which electrical/electronics products are built or assembled. CKD parts are normally supplied by the very big electrical/electronics manufacturing firms existing in the industrialized countries of the world such as Japan, Germany, United States of America (USA), Taiwan and so on. These firms regard this activity as another means of selling their products albeit in kit form and as a result expect buyers to purchase the kit as a whole regardless of whether they have need for all the contents of such kits. Thus, most of the completely-knocked-down(CKD) parts are imported. The few that are made locally(mostly from the imported raw materials) are cable logs,

47

fuses, fuse holders, knobs, plastics frames, gaskets and insulators. A few carbon resistors made locally are being used by the informal sector. Semi-Knocked-Down (SKD) Components SKD parts are assembled from CKD parts employing in most cases specialized techniques and expensive machines both of which are not within the reach of the small-scale enterprises. SKD parts may be supplied together with CKD parts as kits or may be sold separately as sub-assemblies or spares. Apart from circuit breakers, loud speakers and relays, all other Semi-Knocked-Down (SKD) parts are imported.

48

RAW MATERIALS SHORTFALL BETWEEN REQUIREMENT AT FULL AND CURRENT CAPACITIES Tabulated below are raw materials shortfall between requirement at full current capacities by various sub-sectors. TABLE 4:1 SUB-SECTOR: ELECTRICAL BULBS, LAMPS AND ACCESSORIES

Most of the companies under this sub-sector have gone down. Only few companies are operating. Most of the basic raw materials are imported and the cost of production is too high. The cost of production in Nigeria is said to be nine (9) times higher than that of china, four (4) times that of Europe and two (2) times that of Ghana. With the near zero manufacturing activity in the sub-sector, employment level is also affected and Capacity utilization is below 35%.

TABLE 4.2: SUB-SECTOR: ELECTRICAL POWER CONTROL

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

1. ELECTRICAL METER CO. NIG. PLC Plot 30 – 32, Light Industrial Area, P.M.B. 660, Zaria, Kaduna State.

i. Electric steel strip in coil ii. Deep drawing steel strip in coil iii. Copper wire flat and round iv. Aluminium strip v. Brass section rod/sheet vi. Phenolic resin

Kg Kg Kg Kg Kg Kg

88,400

58,740

47,320 8,460

59,820 229,260

33,400

23,863

19,223 3,437

24,302 93,137

62

59

59 59 59 59

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

1. BENNETT INDUSTRIES LTD., Plot D, Ikosi Road, Oregun, Ikeja, Lagos State

i. Cold rod steel sheet ii. Lamp holders in coil iii. Cables iv. Ballasts v. Grommetts vi. Polished Aluminium reflector vii. Tough heat resistant glass viii. UV protected plastic shade ix. Capacitors

Tonnes Pieces Tonnes Pieces Pieces Tonnes Pieces Pieces Pieces

42.5 125,000 475,000 125,000

26,250

6,500 7,000

21,250 22,500

23.5 57,500

262,500 57,500 11,000

4,250 5,625

10,000 10,000

45 54 45 54 58

35 20

53 56

49

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

2. BORNO STATE RURAL ELECTRIFICATION BOARD, Bolori Layout, P.M.B. 1178, Maiduguri, Borno State.

i. 100KVA 33/0.415kv transformer ii. 117KVA Gen. set iii. 33KV Gang isolator iv. 185mm2 PVC/SWA/PV v. 28”concrete poles vi. 70mm2 Feeder pillar vii. 4-way feeder pillar viii. Stay wire ix. Street complete

No. No. No. M No. M No. M -

N/A N/A N/A N/A N/A N/A N/A N/A N/A

5

10 5

10 1,595

9 N/A N/A 445

3. GATOY NIG. Co. LTD. Fatai Atere Way, Matori, P.M.B. 983, Agege, Lagos State.

i. Mild steel sheet metal ii. Paints iii. Flexible cables iv. Circuit breakers v. Copper bars vi. Bolts and nuts

No. Lt Mtrs No. No. No.

3,556 726

4,122 2,489 1,867

N/A

1,067 217

1,233 750 750 N/A

70 70 70 70 60 -

4. SOLID BASE NIG. LTD. 25A Fatai Atere Way, Matori, P.O. Box 369, NITEL School, Oshodi, Lagos State.

i. Circuit breakers ii. Contactors iii. Copper bars iv. Cables v. Steel enclosure vi. Insulators vii. Fuses viii. Capacitors ix. Inductor x. Transformers

No. No. No. - Pieces N/A N/A N/A N/A N/A

600 1,175

3 488

12 N/A N/A N/A N/A N/A

113 83

2 89

4 N/A N/A N/A N/A N/A

81 93 33 82 66

5. GOD IS ABLE ELECTRICAL ENGINEERING WORKS 39, Egan Road, Igando, Lagos State.

i. Copper wire ii. Sheet metal iii. Voltage indicator iv. Indicating switch

Kg Pieces Pieces Pieces

1000 21 50 50

513 11 12 12

49 48 76 76

6. CHRIS UMUNNO TECH. CO. Shop F113, Alaba Market, Ojo, Lagos State.

i. Mica ii. Sheet metal housing iii. Electrical gear motor iv. Plastic metal gear v. Rollers/Rubber

Pieces Pieces N/A N/A N/A

26 48

2,125 N/A N/A

10 11

875 N/A

1000

62 77 59

50

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

7. MALLAM MUSA ELECRICAL ENGINEERING COMPANY B4, Alaba Market, Ojo, Lagos State.

i. Sheet metal ii. Copper iii. Voltage indicator

Pieces Kg Pieces

40 1,600

80

19 838

40

53 48 50

8. DEMOSCO ELECTRICAL COMPANY 84, Igando Road, Ikotun, Lagos State.

i. Copper ii. Laminating iron iii. Aluminium iv. Bearings v. Plastic cover

Kg Pieces Pieces Pieces -

888 150 150 150

-

69 69 71 71

-

92 54 53 53

9. DUNAMIS ELECTRICAL EQUIPMENT NIG. LTD., Block CC 3B Lagos State Ind. Estate, P.M.B. 253, Oshodi, Lagos State.

N/A N/A N/A N/A

10. AKINOLA (NIG) ENTERPRISES, 4, Araromi Street, Iyana-Ipaja, Alimosho, Lagos State.

i. Wire/cable ii. Copper bars iii. Contractors fuse

Feet No. -

1,167 833

-

550 313

-

53 62

11. BUSITEC ENGINEERING LTD., Block CC2 Fatai Atere Way, Matori, P.M.B. 5607, Lagos State

i. Circuit breakers ii. Cables iii. Copper bars iv. Meters v. Transformer vi. Fuses vii. Inductor viii. Insulators ix. Steel enclosures

No. No. No. No. No. No. - - -

508 638 613 725

- - - - -

410 450 493 608

- - - - -

19 29 20 16

12. ONYEMS ENGINEERING SERVICES, 19, Palm Lane Umuahia North, Umuahia, Abia State.

i. Copper wire ii. AVR iii. Capacitor

Pound weight - -

3,000 22 75

488 12 55

84 45 27

51

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

13. KARISTO INDUSTRIAL SYSTEMS LTD.,

KM11/2 Aba-Umuahia Express Way, Osisioma Ngwa, Abia State.

i. Flat steel sheets ii. Steel hinges/keys iii. Felt and door rubbers iv. Stainless steel sheets v. General steel works vi. Switch gear vii. Components viii. Copper bars/cables ix. Aluminium bars

MT No. Meters MT MT - - MT MT

20 15,750 19,425

- - - -

33 -

8 5,700 7,063

0.83 16

- -

11 0.7

60 64 64

67

14. OYEBUCHI ELECTRICAL ENGINEERING SERVICES,

22, Oboro Street, Umuahia North, Umuahia, Abia State.

i. Copper wire ii. Prespan tapers iii. Steeves iv. Power diodes

Kg Yards Yards Pieces

6,500 350 375 388

2,733 123 233 304

58 65 38 22

15. C.C. & Co.,

58, Orlu road, Akwakuma, Owerri, P.O. Box 1758, Owerri, Imo State.

i. Cement ii. Sand iii. Gravel iv. Water v. Rods (iron)

Tones (MT) MT MT - MT

44 206 300

- 600

44 206 300

- 600

0 0 0 - 0

16. ISMIK NIG. LTD.,

1, Onyeche Street, Municipal, Owerri, Imo State.

i. Cement ii. Sand iii. Gravel iv. Iron rods v. Flat sheet

KG MT MT MT -

713 7.0 9.0 1.5

-

250 2.5 3.0 0.5

-

65 64 67 67

17. EKIDEM BROS ELECTRIC CO., LTD., 50, Nwaniba Road, P.M.B. 2606, Uyo, Akwa-Ibom State.

i. Sand ii. Gravel iii. Rod iv. Cement v. Water

MT MT Pieces Kg Lt

97 113

1,600 58,750

-

68 96

1,400 49,250 20,300

30 15 13 16

18. POWER POLES IND. LTD.,

KM4, Umokoli Naze, Naze, Owerri North, Imo State.

i. Cement ii. Chipping (crushed) iii. Sand iv. Diesel v. Gravel vi. Iron rods vii. Grease

Kg MT MT Lt MT MT Tins

- -

- - - -

58,500 360 390

1,560 -

1,000 312

52

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

19. JACKIE JAY ENGINEERING WORKS LTD.,

45, Idoro Road, P.O. Box 2554, Uyo, Akwa Ibom State.

i. Cement ii. Gravel iii. Rod iv. Sand v. Water

Kg tonnes Pieces Tonnes Lt

85,000 45,050

1,750 95

35,000

51,000 72

850 72

21,250

40 99.8 51 24 39

20. MANE LTD.,

Plot 5, Block K,

Oshodi-Apapa Express Way,

Isolo, P.O. Box 68, Ebute Metta, Isolo, Lagos state.

N/A N/A N/A N/A -

21. EWARE EWEECO NIG. LTD.,

103, Bukuru Road, Jos

P.O.Box 597, South, Plateau State

N/A N/A N/A N/A -

This sub-sector was identified as promising inspite of the numerous problems and challenges facing it. As at present, there are three known areas in the power sector of the economy, these are; generation, transmission and distribution. While power generation is built on demand and to specification, the transmission aspect is owned by PHCN and contracted out but still monitored by PHCN. The overall assessment of the sub-sector was that the country has the capacity to go into the 3-aspects of the power sector. On the other aspects of the sub-sector, the country has potential of building the component parts.

TABLE 4:3 SUB-SECTOR: CABLES AND WIRE

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

1. ALIND NIG. LTD., Industrial Estate,Bauchi. P.O.Box 0264, Bauchi State

i. Aluminium rod ii. Copper rod iii. Galvanized steel iv. PVC compound

Tonnes Tonnes Tonnes Tonnes

800,000 200,000

5,000 720,000

205 30 18 38

100 100 99.6 100

53

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIAL DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

2. NIGERIAN ELECTRICAL DEVELOPMENT CO. LTD., 1, Ayodele Diyem Road, Ikeja, Lagos State.

i. Copper wire ii. Aluminium wire iii. Galvanized wire iv. PVC compound

Tonnes Tonnes Tonnes Tonnes

1,071 1,071 1,071 1,071

774 548 351 421

28 49 67 61

3. NOCACO LTD., 7, Maichibi Road, Kaduna South, Kaduna State.

i. Aluminium rod ii. Copper rod iii. PVC

Tonnes Tonnes Tonnes

2,000 600 426

785 410 400

61 32 6

4. BENMAX CABLES LTD., Plot 1-N/123, Emene Industrial Estate, Enugu East, Enugu State.

i. Copper ii. Aluminium iii. PVC compound

Tonnes Tonnes Tonnes

200 100 250

11 -

10

95

96

54

Cables and wires An overview of this sub-sector shows a remarkable manufacturing activities. It was observed that the number has increased to 13 companies engaged in active manufacturing of cables and wires of different sizes and are operating at over 85% installed capacity. Nigerian Cables and wires are most preferred by Nigerian than the imported ones. This scenario is not unconnected to their performance in the market and their strict adherence to NIS standard.

TABLE 4.4 SUB-SECTOR : ELECTRICAL BULBS,LAMPS AND ACCESSORIES

S/NO. NAME AND ADDRESS OF FIRM

RAW MATERIALS DESCRIPTION UNIT OF MEASUREMENT

ANNUAL CAPACITY SHORTFALL %

INSTALLED CURRENT

1. BENNETT INDUSTRIES LTD., Plot D, Ikosi Road, Oregun, Ikeja, Lagos State

i. Cold rod steel sheet ii. Lamp holders in coil iii. Cables iv. Ballasts v. Grommetts vi. Polished Aluminium reflector vii. Tough heat resistant glass viii. UV protected plastic shade ix. Capacitors

Tonnes Pieces Tonnes Pieces Pieces Tonnes Pieces Pieces Pieces

42.5 125,000 475,000 125,000

26,250

6,500 7,000

21,250 22,500

23.5 57,500

262,500 57,500 11,000

4,250 5,625

10,000 10,000

47.706 54.00

44.737 54.00

58.095

34.615 16.643

52.941 55.555

Most of the companies under this sub-sector have closed down. Only few companies are operating. Most of the basic raw materials are imported and the cost of production is too high. The cost of production in Nigeria is said to be 9 times higher than that of China, 4 times that of Europe and 2 times that of Ghana. With the near zero manufacturing activity in sub-sector, employment level is also affected and Capacity utilization is below 35%

Table 4.5 contains the required basic raw materials for the electrical and electronic sector, sources/locations and

their intermediate product.

TABLE 4.5: ELECTRICAL AND ELECTRONICS: BASIC RAW MATERIALS AVAILABLE IN NIGEIRA AND THEIR

LOCATIONS

S/N BASIC RAW MATERIALS

INTERMEDIATE PRODUCTS (COMPONENTS) LOCATION (STATES)

1. Quartz (Silicon sand) (a) Transistors and diodes

(b) Fluorescent and electrical

(c) Optical fibres

Plateau, Rivers, Ondo, Kano, Edo. Imo, Lagos, Bayelsa, Borno, Enugu, Gombe, Jigawa, Delta.

2. Mica (a) Domestic pressing iron element (b) Electronic tubes and capacitors ©Electrical insulators

Bauchi, FCT, Plateau, Kwara, Cross-River, Osun

3. Ceramics (Feldspar, Kaolin, Talc etc.)

(a) Capacitors (b) Substrate of IC (c ) Coating of wires used for winding of transformers, meters etc.

Anambra, Sokoto, Katsina, Kwara, Ogun, Oyo, Bauchi, Niger, FCT, Ondo, Kano, Enugu, Jigawa, Abia, Adamawa, Akwa-Ibom, Benue, Borno, Cross-River, Delta, Edo, Ekiti, Gombe, Imo, Jigawa, Kano, Katsina, Osun.

4. Tin ore and Cassiterite

(a) Tin oxide resistor (b) Electrical lead wires

Plateau, Kaduna, Bauchi, Kano

5. Carbon (From wood combustion)

(a) Carbon composition resistors All States

6. Copper (a) Cables and other electric conductors (b) Transistor casing © Resistor leads (d) Base of bulbs

7. Alumina (Bauxite) (a) Electrolytic capacitor foils (b) Condenser microphones © Electric fan blade (d) Aerial elements

Akwa-Ibom, Ekiti

8. Iron Ore (a) Steel manufacture (b) Transformer and motor cores © Electric fan cage (d) Equipment rack (e) Instrument body (f) Metals for electrical shielding

Kwara, Plateau, Benue, Sokoto, Bauchi, Borno, Anambra.

9. Tungsten Filaments of electric bulb.

10. Lead Ore (galena) Zinc Ore (shale rite)

(a) Electric bulb contacts (b) Batteries

Kano, Plateau, Anambra, Benue, Bauchi, Adamawa.

11.

Crude Oil (a) Transistor and resistor (b) Insulators © Battery housing (d) Plastics

Bayelsa, Rivers, Cross-River, Akwa-Ibom, Abia, Edo, Delta, Lagos, Ondo

12. Rubber (a) Battery housing (b) Cable insulators

Abia, Akwa-Ibom, Cross-river, Delta, Edo, Imo, Lagos, Ogun, Ondo, Osun, Rivers.

13. Wood (a) Cabinet of televisions, radios and amplifiers (b) Base of fluorescent bulbs © Support for bed lamps

Cross-River, Akwa-Ibom, Ebonyi, Edo, Delta, Ekiti, Rivers, Ogun, Osun, Oyo, Lagos, Ondo, Enugu, Kaduna

14. Graphite (a) Foundry linings (b) Carbon brushes

Katsina, Gombe, Bauchi, Taraba, Niger, Kaduna

56

4.3 Industries Operating in the Sector About sixteen companies are operating in electric power generation, distribution and control equipment sub-sectors, five companies are operating in electronics and telecommunication sub-sector, six industries operate in electric cable and wire sub-sector, twelve (12) industries in refrigeration, air conditioning and domestic electrical appliances while four companies are operating in electrical bulbs, lamps and accessories sub-sector. 4.4 R&D Activities and Facilities in the Sector

TABLE 4.6 R & D ACTIVITIES IN NIGERIAN RESEARCH INSTITUTE

S/N Name and Location of Research Institute

R&D Title R&D Description Year of Commen cement of R&D

Status

1. Centre for Adaptation of Technology (C.A.T), 16, Igweze Street, Amikwo, Awka, Anambra State.

1. Gordian AAVR. 2. Public Address System 3. Digital Information Display 4. Printed Circuit Board 5. Digital Work Bench

Copy, adaptation, reverse engineering of the listed electronics and computer systems.

2000 Not stated.

TABLE 4.7 R & D ACTIVITIES IN NIGERIAN INSTITUTIONS OF HIGHER LEARNING

S/N Name and Location of Research Institute

R&D Title R&D Description Year of Commen- cement of R&D

Status

1. Federal Polytechnic, Electrical & Electronics Engineering Dept., Nekede, Owerri, Imo State.

- Production of welding machines, inverters - Baby Incubator - Magnetizer and Demagnetizer

- 125 Amps (high), 124 Amps (medium), 95 Amps (low) welding machine. - Baby incubator (glass) for pre-mature. - Achieving full attraction and repulsion.

2001 2001 2001

Completed (2002) Completed (2002) Completed (2002)

2. The Federal Polytechnic, Bauchi, Dass Road, Bauchi – Bauchi State.

- Automatic blender Control - Automatic Street Lighting System - Sequential Lighting System

- The circuit is to help in protecting the winding of the blender thereby increasing the life span of the blender. It comes on and off at an interval of time. - The circuit switches on the streetlight when darkness occurs and switches off the streetlight when daylight appears. - The circuit light bulbs sequentially usually used for signboards

1999 1999 1998

Completed (2002) Completed (2002) Completed (2000)

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S/N Name and Location of Research Institute

R&D Title R&D Description Year of Commen- cement of R&D

Status

3. Federal Polytechnic, Damaturu, Maiduguri Road, Damaturu, Yobe State.

- Solar Energy Generator (Thermal) - Computerization of Students’ Results - Expert system for diagnosis of domestic animal diseases (A case study of MOA &NR) (Yobe State) - Computerization of poverty alleviation programme in Yobe State MOF

- Proto-type solar energy generator using thermal energy - The program computes the students’ GPA, CGPA, displays the students’ results etc. - Diagnoses diseases associated with a particular animal, gives possible treatment or prevention to assist Vetenary Doctors - The program created a database for input data and created jobs for each applicant depending on his/her qualification.

Not stated 1999 2002 2001

On-going Completed (2001) Completed (2002) Completed (2001)

4. Ahmadu Bello University, Zaria, Department of Physics, Zaria, Kaduna State.

- Geophysical Exploration - Radiation Protection

- Teaching and research in the area of applied geophysics. Geophysics exploration for oil and gas, solid minerals and ground water. - Monitoring of the environment

Not stated Not stated

Not stated Not stated

5. Sokoto State Polytechnic, Off B/Kebbi Road, Rugar Waurle, Sokoto State.

- Effect of force ventilation on the period of heat entering a non-air-conditioned adobe store

- Onion Sore 2003 Not stated

6. Kaduna Polytechnic, Polytechnic Road, Kaduna, Kaduna Sate.

- Not Stated - Detection of a phase failure in 3-Q supply - Design and construction of 3-Km radius FM transmitter

- Metal detector - Not stated - Not stated

1985 Not stated Not stated

Completed (1990) Completed (2002) Completed (2002)

7. Federal University of Technology, Owerri, Imo State.

- Quality of power supply in Nigeria

- Verification of voltage, frequency variation form standard limits.

2001 To be completed in 2004

8. Benson Idahosa University, Ugiokhuen Road, Off Ugbor Road, Benin City, Edo State.

- Information Technology training and research studies.

- Training of Edo State business women on E-Commerce and E-Trading

2003 1998

To be completed in 2005 Completed (2002)

9. Igbinedion University Okada, Edo State.

- Sampling of ambient air and rain for atmospheric pollutant - Existence theorems for a three point third order b.v. Problem

- Analysis - Mathematical

2002 2001

To be completed in 2003 To be completed in 2003

10. Federal University of Technology, Department of Physics, Minna, Niger State. “ (Electrical and Computer Engineering Department).

- Origin and tectonic evolution of the Bida Basin, Nigeria - Site selection for Seismic Centre - Production and interpretation of composite magnetic map of Nigeria

- Survey to select appropriate site for the siting of a seismic centre for the monitoring of earthquake activities worldwide. - Production of a composite magnetic map of Nigeria areas where magnetic minerals are found within the country will be delineated and quantity of minerals defined. - Identification of local raw materials for production of dry cells and automotive batteries.

1999 2000 2002

Completed (2001) Completed (2001) To be completed in 2004 Completed (2002)

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S/N Name and Location of Research Institute

R&D Title R&D Description Year of Commen- cement of R&D

Status

- Not Stated

1995

11. Federal Polytechnic, Bida, P.M.B. 55, Bida, Niger State.

- Design and construction of Uninterrupted Power Supply (UPS) - Ham-attah Jacket-Design and construction - Design and construction of solar operated UPS (500 VA)

- 200VA, 50HZ, 500VA, 50HZ - 9-V battery powered warm jacket for cold weather. 500VA 50HZ UPS excited by both mains and solar energy

1996 2002 2002

Completed (1998) Completed (2002) To be completed in 2004

12. Federal Polytechnic, Offa, Department of Computer Science, Oshogbo Road, Offa, Kwara State. “ (Computer Engineering Technology)

- Time table scheduler - Design & construction of an AVR (stabilizer) of 2000w - Design and construction of an intrusion alarm system - Design and construction of 1000VA stabilizer (Automatic Voltage regulator)

- For processing of exam timetable, classroom, courses and invigilators. - This is a device that operates at 100V, 50hz to supply a constant or stabilized voltage of 220vt 6% and frequency of 50 hzt 1%. - An intrusion alarm system is an electronic device used to detect or sense the presence of an unauthorized user in a restricted or highly security sensitive area and generates alarm. - It can stabilize an input voltage of between 100-270 volts at 50hz to obtain constant voltage of 220v.

2003 2002 2002 Not stated

Completed (2003) Completed (2002) Completed (2002) Not stated

13. University of Ilorin, Ilorin, Kwara State.

- Ionospheric Parameters measurement - Baseline surface radiation network

- To measure Ionospheric parameters for radio propagation. - Measurement of radiation parameters.

2001 1992

On-going On-going

14. Hussaini Adamu Polytechnic, Daura Road, Kazaure, Jigawa State.

- Dielectric Sensor - Amplifiers - Remote Control - Traffic Light Control

- Design and construction of dielectric moisture censor for cereals and grains. - Design and construction of an experimental module for operational amplifiers’ application. - Infrared remote control of small capacity industrial machines. - Design and construction of digital traffic light control system.

- - - -

In progress In progress In progress In progress

15. The Polytechnic, Sango-Eleyele Road, Ibadan, Oyo State.

- Digital Sphygamanometer - D.C. Solar Panel - Auto Power Circuit Recloser and Sectionalizer - Satellite Dish (1.5m) - Security Alarm

- Design and construction of digital sphygmanometer - Design and construction of 12v D.C. solar panel with inverter for 220v A.C. - Design and construction of a Model Auto Power Circuit Recloser and sectionalizer. - Design and construction of a 1.5m Satellite Dish. - Design and construction of sound Activated Light Flasher Security Alarm.

2001 2002 1999 2000 2002

Completed in (2002) For completion in (2003) Completed in (2001) Completed but needs improvement. In progress

16. Federal University of Technology, Owerri, Imo State.

- Phonon dispersion curves in lattice dynamics - Electronic and Magnetic Lattice relaxation in hyperfine fields

- Phonon dispersion curves in the lattice dynamics of b.c.c. Alkaline earth barium. - Calculation of the Electronic and Magnetic structure of the Nitrides NiFe3N, PbFe3N and PtFw3N using the

1996 2001

Completed in (1997) Completed in (2002)

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S/N Name and Location of Research Institute

R&D Title R&D Description Year of Commen- cement of R&D

Status

- Liquid Lead-bismuth Alloys - Semiconductor Alloys - Volate Stability Studies

augmented spherical wave (ASW) method combined with Fixed Spinmoment (FSM). - The role of Lattice Relaxation in calculated Hyperfine Fields of Light Interstitials in Iron (Fe). - Determination of partial and total structure factors of liquid binary alloys. - Determination of surface tension and surface segregation using statistical and thermodynamic modeling. - To establish the point of collapse of voltage of Niger Power System

2000 1999 2002 1998

Completed in (2001) Completed in (2003) On-going In-progress

17. Yaba College of Technology, Yaba, Lagos.

- Construction of a 50 KVA Transformer - Digital/Analogue Electronic Clock - Configuration and assemble of a Computer System.

- Design and construction of a 50KVA Transformer - Design and construction of Digital/Analogue Electronic Clock - Configuration and assemble of a Computer System (Pentium II – 733 MHZ)

1999 2001 2001

Completed in (2000) Completed in (2002) Completed in (2002)

18. Lagos State Polytechnic, Sagamu Road, Ikorodu, Lagos.

- CMOS Integrated Circuits (ICS) - Welding Equipment - Language/Shorthand Learning System

- To design and construct CMOS Integrated Circuits (I.C.S.) for local applications. - Design and construct welding equipment for ferrous and non-ferrous metals - Design and construct a language/shorthand learning systems

1993 1987 1995

In progress Completed in (1990) Completed in (1997)

19. Adeniran Ogunsanya College of Education, Lagos-Badagry Express Way, (KM 30), Lagos.

Voltage Stabilizer - To construct a Voltage Stabilizer - Completed in (2001)

4.5 General Observation

It generally observed that

a. There is influx of fake and substandard electrical and electronics products into the Nigerian market.

b. Smuggling of electrical and electronics products into the country.

c. Importation of electrical and electronics products by government agencies such as (PHCN, NNPC, Federal Ministries of Power and Steel, Federal Housing Authority), Although some of these products can be manufactured locally.

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d. Lack of basic infrastructure/non-conducive environment, which make it impossible for local products to compete with imported standard electrical/ electronics products.

e. Multiplicity of taxes paid by industries to all tiers of government and its agencies.

f. Lack of government patronage/apathy on made in Nigeria products.

g. Low level of R&D activities in the sector. It was further observed that there is no

sufficient data bank/base on such areas as well as linkages between researchers and industry.

h. Serious concern on the low capacity utilization across the sub sectors with zero

indexes in electronic/telecommunication sub sector.

i. 80-86% of the raw materials for all the sub sectors are being imported despite local capabilities.

j. Import duty exemptions for imported electrical and electronics products granted

to oil companies and contractors operating in special projects for products that have sufficient local production capacity.

4.6 Recommendations

a. The sector requires assistance and capacity building in order to promote pro-

active policies with regards to information, gathering and waste management, product engineering /design and to adequately address problems related to the growing volumes of waste in Nigeria.

b. That the local industry should be protected through effective tariff measures;

and also from low quality electrical and electronics products, which infiltrated the markets.

c. That there should be periodic meetings of stakeholders (i.e. academia, Research

institutes and the industry) to brain storm on the problems and prospects of the sector, with a view to making suggestions on how best to move the sector forward.

d. Government should grant concessionary tariff on import duty paid on the

essential raw materials for electrical and electronics products

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e. The proposed import duty for raw materials should be decreased from 25% to 2.5% to bonafide manufacturers

f. Importation of all finished products in the sub-sector for which there is capacity

to meet the local demand should attract 100% duty.

g. Tariff on raw materials for the production of dry cell batteries that are manufactured locally should be reduced while 100% duty should be placed on the importation of their finished products.

h. Government should make deliberate policy to encourage local patronage of

made in Nigeria electrical and electronics products by issuing necessary directives to various organs of government, consultants and contractors.

i. The incidence of smuggling and dumping should be combated effectively by

Nigerian custom through intensive policing of borders of entry into the country as well as raiding their outlets from time to time.

j. There should be legislation to out law the sale and use of second hand feeder

pillars, transformers, high tension cable etc, Standards Organisation of Nigeria (SON) should certify such product(s) in conjunction with Power Holding Company of Nigeria (PHCN).

k. That government should make concerted effort in addressing/reviving the

Nations petro- chemical and steel industries. l. Government should provide an enabling environment for the manufacturing

sector to grow by the provision of infrastructures.

m. Where we have local capabilities, government should restrict importation of those items/components.

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CHAPTER FIVE

FOOD, BEVERAGE AND TOBACCO SECTOR 5.1 Introduction This report presents an analysis of the survey conducted on the Food, Beverage and Tobacco Sector. The survey covered specifically 3 out of the 15 subsectors of the industry, namely: Fruit Juice, Sugar and Flour. The focus was on the raw materials and the industries to which these sub-sectors are inter-linked. Thus, the items listed in the survey are also utilized by many other industries outside the sub-sector, making it necessary to extend the study to these industries. The following raw materials and intermediate products were covered by the survey:

1. Sugar

2. Cassava

3. Ethanol

4. Citric Acid

5. Fruits (Orange, Pine-apple)

6. Maize

7. Hops

8. Fruit Juice concentrate

9. Barley malt

10. Sorghum

11. Cocoa

5.2 Sugar Sugar is a finished product and yet a vital raw material in various industries. It is commonly produced from sugarcane and sugar beet. Although Nigeria grows sugarcane in various ecological zones – Guinea savannah, rain forest and mangrove (Niger Delta), the country has not been able to sustainably produce sugar. Inevitably, Nigeria has had to import raw sugar which is further refined to make it available for the market (industrial and domestic). Nigeria’s demand for sugar is estimated to be about 1million tonnes per annum. The food and beverage industries constitute a notable consumer of this product. The industry has not been able to source all of its sugar requirements because the import duty differential between refined sugar (50% +10% levy) and raw sugar (5%) made importation of sugar unattractive to consumers. Thus, most manufacturers have to patronize the sugar refining industries. The soft drinks industry was able to source about 69% of its sugar requirement. The brewery industry sourced about 83% of the sugar requirements while the wine industry sourced about 47% its needs.

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5.3 Quality Specifications of Raw Materials 5.3.1 Sugar Sugar EEC Odour odourless Appearance lustrous, strong, dry and free - flowing with crystals Moisture, % 1 max Ash, % 0.005 max Fe, ppm 3.0 max Cu, ppm 2.0 max Pb, ppm 1.0 max Sulphated ash, ppm 0.15 max Sucrose, % 99.4 max Invert Sugar, % Beet source, Cane source 0.075 max 0.20 max. 5.3.2 Ethanol (Ethyl Alcohol) Purity, % w/w 96 – 98 Specific gravity 0.789 – 0. 791 Aldehydes and ketones , % 0.03 max Acidity (CH3 C00H), % 0.005 max Alkalinity (NH3), % 0.005 max Methanol (CH3 )H), % 0.1 5.3.3 Wheat flour Description White free - flowing powder, opaque, vicious suspension with no insoluble particles. Flavor Characteristically bland Texture Smooth, mucilaginous short Moisture 3-5 Protein (N x 6.25), % 10 – 11 Fat % 1.25 max Calcium, ppm 225 max TVC, /g 10,000 5.3.4 Maize grain/sorghum Applications Moisture content, % 11 – 13 Extract (dry) % 78 – 90 Variety yellow aralor white Sugar same grade as in beverages sub-sector 5.3.5 Hop Application Brewing Specifications Same as in soft drinks sub-sector

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Alpha acid (bitterness Unit), % 47.5 5.3.6 Caramel Description Very dark brown thick liquid Application for soft drinks and fruit juice manufacture Taste Pleasant bitter taste Odour Distinct odor of burnt sugar Solubility soluble in water and insoluble in benzene chloroform, acetone and ether Foreign particles: Nil 5.3.7 Malt extract Reducing sugar, % Total solids, % 60 – 71 Organic acid, % 80 – 81 Reducing and non-fermentable, % 0.9 Non reducing fermentable, % 3.3 Protein (N x 6.25), % 12.2 Mg acetate, % 5.0 – 9.0 P2 05 % 1.7 Ash, % 0.6 Microbial limit 2 max Total plate count, /g 10000 max Mould and yeast, /g 20 max Coliform, /g 10 max E. Coli, /g absent Salmonella, /g absent 5.3.8 Wheat grain (for flour and grain milling) Protein, % 10 – 11 Moisture, % 10 – 12.5% Endosperm Glassy for hard wheat Damaged Kernel, % 4 max 5.3.9 Orange juice concentrate Description Orange juice concentrate obtained from the natural juice expressed from the endocarp of clean sound and ripe oranges and concentrated by physical means (evaporation) Appearance Must have a smooth texture, be flowing at ambient temperature (+5 to 30oC), of uniformly bright orange colour and free from any discoloration. It must also be free from any foreign matter such as pip debris or black or brown specks.

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Functional use Materials to be used as the ingredient in the manufacturing of the soft drink. Technical Specifications Brix at 20oC : 24 – 26 Microbiology Total plate count : 20 CFU/ml Mould : 5 CFU/ml Yeast : 5 CFU/ml 5.3.10 Apple juice concentrate Description Apple aroma obtained by physical means (distillation) during apple juice concentration process. Appearance Colourless transparent liquid. Good and strong distinctive apple flavor and free from any off-flavour staleness. Functional use Material to be used as ingredient in the manufacturing of the apple soft drink. It gives the drink its characteristics aroma. Technical Specifications Refraction Index 1,3375 Density at 20oC 0.96 – 0.995 g/ml Odour Characterized, free from Any extraneous odour Table 5.1: IMPORT DUTY PROFILE OF SELECTED RAW MATERIALS (2008-2012)

S/ N Description Import Duty Levy Vat

1. Durum Wheat 5 5

2. Other wheat 5 5

3. Wheat Flour 35 35

4. Wheat (Grouts, meal, pellets) 5 5

5. Cassava Starch (Pharmaceutical grade)

20 10

6. Cassava Starch (for other uses) 35 35

7 Cane sugar (raw, not containing added flavouring or colouring matter)

5 5 5

8. Cane sugar (containing added flavouring or colouring matter)

20 30 10 5

9. Fruit juice concentrates (in bulk, 200L)

5 10 5

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10. Fruit juice in retail pack 20 20 5

11. Mineral water 20 20 5

12. Other packaged water (non-mineralized)

20 20 5

13. Undernatured ethyl alcohol (80% v/v or higher)

20 20 5

14. Denatured ethyle alcohol (for medical pharmaceutical or scientific purposes

5 5 5

15. Denatured ethyl alcohol (for other uses)

5 5 5

16. Undernatured ethyl alcohol (80% v/v or) less than

10 10 5

5.3.11 Fruit juice concentrate Fruit juice production in Nigeria was estimated to be 96,000,000 Litres/year In order to produce this quality of juice, about 100,000 tonnes of fruits would be required which unfortunately is above current local fruit production. In order to step up fruit production to meet demand more investments and modern technology are required. Transporting fruits to processing factories from around the country poses logistic, technical and economic problems. Delay in processing some fruits may result in deterioration and affects the quality of the juice. Transportation of fresh fruits may require the use of refrigerated vans. This and other requirements add to the costs. In the industry, the problems are overcome by processing fruit to fruit juice concentrates which have much less moisture content and reduced volume. Usually the concentrating plants are located on – farm or near the farm, such plants are fed by a network of fruit plantations and orchards within the locality. The fruit juice industry in Nigeria has had to depend on importation of fruit juice concentrates. Government granted a low import duty (5%) on fruit juice concentrates to enable local juice manufacturers import the concentrate. Large quantity of fruit juice concentrates are imported per annum and the number is still increasing because the country is yet to meet the local demand for fruit juices. Government’s plan is to review the policy on importation of fruit juice concentrates after sometime the import duty would be increased to 10%. This would force the juice manufactures to source the concentrates locally through own farms or suppliers. This would inevitably open up investment opportunities for fruit juice concentrates.

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Fruit cultivation The demand for fruit juice in Nigeria places an enormous pressure on local fruit production. Demand for fruits widely outstrips supply. While investments are highly needed, supply of fruit to the concentrating plant is a major challenge. Currently, an estimated 100,000 tonnes of various fruits are required by the processing industries annually. This demand can only be met through massive investment in fruit production. In this regard, the effort of some state governments and private farmers to produce fruits must be recognized. However, there is need to invest in technology. The varieties of fruits available must be suitable for processing vis-à-vis yield per hectare, juice content, nutrient content, size uniformity and resistance to pests, among other attributes.

Cassava flour The government policy on the inclusion of cassava flour in wheat flour for baking purposes was expected to create a large demand for cassava flour and it did. Flour millers were initially expected to include 10% cassava in wheat flour. This would have generated an annual demand of 200,000 tonnes of cassava flour. It was supposed to open opportunities for cassava flour producers. However due to the low capacity of cassava flour producers and other problems, the flour milling industries were including about 5% cassava flour. Quality of the cassava flour, price and regularity of supply were major challenges. Opportunities exist for new investors in the cassava flour industry. It is imperative though that the quality standards be met. Dried fruit slices Many fruits can be dried and marketed as chips or dried slices. Such products are popular snacks in many countries. There is no evidence that such fruit slices are produced in Nigeria, although some of the fruit juice producers are venturing into the business. The Nigerian Stored Products Research Institute (NISPRI), Ilorin produced a drier for drying fruits and vegetables. The equipment has been used to dry mango with acceptable results. The Raw Materials Research and Development Council is collaborating with NISPRI on this project. Already, a diverse has been fabricated for a mango chips factory at a village near Ogbomosho, Oyo State. Drying of fruits can be undertaken as a small scale industry. The challenge though would be the availability of fruits. The processing equipment however must be adaptable for various fruits to ensure the availability of fruits at different times.

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Table5. 2: Raw Material Requirements

Spirits

1. Sugar 30MT 20MT 10MT

66.7%

2. Ethanol 35,600Lt 22,200Lt 13,400Lt

62.3%

3. Cassava 39,600MT 10,107MT 29,493Mt

25.6%

4. Citric Acid 3.5MT 18.5MT 16.5MT

52.9%

5. Pineapple Fruit 0.266MT 0.15MT 0.116MT

56.4%

6. Palm-wine 83,000Lt 76,800Lt 6200Lt

92.6%

Soft drinks

1. Sugar 1053MT 724MT 329MT

68.8%

2. Maize 5,000MT 2000MT 3000MT

40%

3. Hops 406MT 280MT 126MT

69%

4. Orange Concentrate 1382Lt 694Lt 688Lt

50.3%

5. Orange Fruit 250MT 200MT 50MT

80%

6. Citric Acid 3.8MT 2.4MT 1.4MT

63.2%

7. Ethanol 200Lt 167Lt 33Lt

83.5%

Malt drinks

1. Sugar 15530MT 12844MT 2,686MT

82.7%

2. Sorghum 5.5MT 5.0MT 0.5MT

90.9%

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3. Barley Malt 2,400MT 1,600MT 800MT

66.7%

4. Caramel 89.5MT 81.6MT 7.9MT

91.2%

5. Enzymes 36.3MT 6.8MT 29.5MT

18.8%

Wine

1. Sugar 247MT 115MT 132MT

46.6%

2. Pineapple 163MT 92MT 71MT

56.5%

3. Kolanut 2.67MT 2.50MT 0.17MT

93.7%

Miscellaneous Industries

1. Maize 4,633MT 4,367MT 266MT

94.3%

2. Sorghum 4,150MT 3,633MT 517MT

87.6%

3. Cocoa 2,333MT 2,150MT 183MT

92.2%

4. Palm olein 2,127MT 2,033MT 94MT

95.6%

5. Cassava 1,540MT 1,240MT 300MT

80.6%

6. Sugar 7,967MT 7,833MT 134MT

98.4%

7. Soya beans 2,133MT 1933MT 200MT

90.7%

8. Salt 16,467MT 15,200MT 1,267MT

92.3%

9. Milk 38,880MT 23,242MT 15,638MT

59.8%

5.4 Bakery For the bakery sub-sector, the 2006 report focused mainly on the bread making industries which are well spread across the country. It also attempted to cover both the

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organized and unorganized groups of the sub-sector. The major raw materials for this sub sector include wheat flour, sugar, yeast, butter and salt, but the report, based on the data collected from the field, concentrated on flour, sugar and yeast. The table below shows summary of capacity utilization by the industries covered by the survey. They are grouped into six geo political zones of the country but Lagos state, because of its large concentration of industries, was treated as a separate zone. TABLE 5.3: Average Capacity Utilization in Bakery Industries

ZONE RAW MATERIALS

AVERAGE QUANTITY OF RM REQUIRED AT FULL CAPACITY (KG)

AVERAGE QUANTITY OF RM AT CURRENT CAPACITY (KG)

GAP AVERAGE CAPACITY UTILIZATION (%)

Lagos

Flour Yeast Sugar

7,340 165 8200

5,320 119 5800

2020 46 2400

73.67 72.0 71.0

North Central Flour Yeast Sugar

127,000 650 38,333

104,736.9 506.55 29,708.10

22,263.1 143.46 8,624.93

82.47 77.93 77.50

North-East Flour Yeast Sugar

165,000 950 42,000

154,753.5 869.25 34,830.6

10,246.50 80.75 7,169.4

93.79 91.51 82.93

North-West

___ ___ ___ ___ ___

South-South Flour Yeast Sugar

3,000 200 16,000

1614 133.3 8,000

1386 66.7 8,000

53.8 66.7 50.0

South-West

Flour Yeast Sugar

11,950 800 24,000

7,500 428 13,898

4,450 372 10,102

62.76 53.49 57.91

South-East Flour Yeast Sugar

34,333 966.70 9,800

27583.13 736.34 7,324.52

6,749.87 230.36 2475.48

80.34 76.17 74.74

Based on the analysis of the data, it was observed that capacity utilization generally varied between the zones. The North-East zone has average capacity utilization

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between 83 and 94 % followed by North Central zone with capacity ranging from 78 to 82 %. The report did not however cover North Central zone. For the Southern part of the country, capacity utilization ranged from 75 to 80 %, 58 to 63 %, 50 to 67 % in South-East, South-West and South-South zones respectively. It is therefore evident that though there are fewer number of flour mills in the Northern part than the Southern part of the country, capacity utilization in this sub-sector is generally higher in the Northern zones of the country. This may be attributed to higher production, sales and consumption of the product in the zone. There is therefore a prospect in establishing more flour mills in the North. 5.4.1 Source of raw materials The three major raw materials, wheat flour, sugar and yeast though readily available in the country are mainly sourced through importation. Although a few flour mills produce wheat flour locally, major source of their raw materials is importation. Previous efforts aimed at meeting the demand for wheat flour locally through local production and also inclusion of 10% high quality cassava flour in bread making recorded very little success. The quality of the cassava flour, price and sustainable supply of the commodity are some of the challenges militating against this laudable programme. The glutenin content of locally produced wheat is not good enough for the baking industry. This has provided an opportunity and challenge to plant breeders to improve on the glutenin content of locally produced wheat. Bulk (about 90%) of the sector’s sugar requirements are met through importation. Although the country has good climate and soil conditions for the cultivation of the sugar cane, previous efforts from both government and private sector aimed at reducing sugar importation to has not yet yielded the desired result. It is however encouraging to note that heavy private sector investment particularly by the Dangote group in the sector is expected to reduce sugar importation substantially. Baker’s yeast is another important raw materials required by the baking sub-sector. The quantity required by the industries is generally small compared to flour and sugar, and is met through importation. Although the technology required to produce yeast is known, no serious efforts aimed at local production of the commodity is made in the country. This is also another opportunity for investment.

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CHAPTER SIX

MOTOR VEHICLE & MISCELLANEOUS 6.1 Introduction The automotive industry has grown to be a major revenue earner for many countries in addition to transportation of goods and services. The manufacture of motor vehicle accounts for over 10% of the GDP of advanced economies. The Nigerian automotive industry is over four decades old. It constitutes motor vehicles, tractors, motor cycles and bicycles, and has the capacity to produce 108,000 cars, 56,000 commercial vehicles, 6,000 tractors, 1,000,000 motorcycles and 1,000,000 bicycles annually. There are also about 50 auto component manufacturers that supply the automotive assembly plants. Some of them are original equipment manufacturers (OEM), while others service the after sales market. Capacity utilization in the sub-sector, which averaged 90% in 1981, is now about 5% in vehicle manufacturing, 30% in motorcycle and 4% in bicycle and component manufacturing. Historically, the automotive industry in Nigeria had performed poorly due to the following:

Lack of adequate infrastructure;

High cost of utilities;

Shrunken market;

Uncontrolled importation of fully built units;

Collapsed capacity utilization; and

Partial implementation of the Partnership agreements.

The local content level of the industry was very low at 30% and is now below 5%. Its major problem was the under development of the steel and petrol chemical sectors of the economy. The Federal Government established the Raw Materials Research & Development Council and the National Automotive Design & Development Council to accelerate the development of local content for the sector. 6.2 Raw Materials Requirements in the Sector For the purpose of classification of the raw materials the motor vehicle can be divided into:

Suspension and chassis

Engine and transmission

Body and

Electrical

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The major raw materials for the production of motor vehicles are:

a) Cast iron b) Mild Steel c) Aluminum d) Wood e) Fibre glass f) Plastics g) Lead (pure and alloys) h) Rubber i) Carbon black j) Copper k) Poly-propylene l) Sealants and adhesives m) Resin n) Paints o) Glass p) Corrosion inhibitors q) Batteries r) Beautifiers

Typically, an automobile is composed of about 75% iron and steel, 2% of nonferrous metals, 15% of rubber and plastics and 3% glass as structural materials. The prime place of iron and steel along rubber and plastic are thus evident for the industry. In particular, it is noted that of the 75% iron and steel content of a passenger car, steel sheet accounts for 45%, the essence of the cold rolled steel sheet plant or equipment therefore hardly needs emphasis. When the first two assembly plants started production in Nigeria it was shown that the raw materials requirement for the production of 2000 units of car by Volkswagen and Peugeot are as follows:

7,000 tonnes of mild steel

8,000 tonnes of medium carbon steel

800 tonnes of heat treated steel sheets

60 tonnes of roller bearing sheet

240 tonnes of spring steel

24 tonnes of sinter steel

200 tonnes of cast iron

400 tonnes of aluminium alloys

140 tonnes of copper alloys

50 tonnes of zinc alloys

200 tonnes of lead alloys

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20 tonnes of other metal

1000 tonnes of rubber

600 tonnes of plastics

600 tonnes of glass

1,200 tonnes of other non- metallic materials The essential raw materials required in the sector are basically iron and steel products. The basic raw materials are known to exist locally in the ore form most of which have not been developed. Electrical sub-group consists of alternators, headlamps, ignition, coils, sparkplugs, cable harnesses, fuses, switches and relays. The basic raw materials required for their production include: copper, aluminum, PVC insulators, lead and polypropylene. The bicycle is made up of the frame and the accessory or rim parts. The manufacturing of the frame was mainly done locally while the rim part was imported. The essential raw materials for the bicycle industries are steel pipes, steel strips, enamel powder, brass electrode, abrasive bands and rubber. 6.3 Installed Capacity And Capacity Utilization The installed capacities for the initial six assembly plant were 108,000 cars, 56,000 light commercial vehicles and trucks and 6,000 tractors in 2006. However due to various circumstances only one assembly plant, Peugeot Automobile of Nigeria is producing at less than 5% capacity utilization. Table 6.1 Vehicle Body Component & Technology Situation

Vehicle Type Technology Status Location

Tricycle Forming, stamping and pressing

Technology not available

Cars Forming, stamping and pressing

Technology not available

Light commercial vehicles Forming stamping and press

Technology available General Motors ALUMACO- Lagos ALUMACO-Enugu

Heavy commercial vehicle Forming, stamping and pressing

Technology available Metal construction limited H W Romain Ltd Kano Press metal industry. Lagos

75

There are seven motor bicycle assembly plants namely Honda manufacturing, Yamaha manufacturing, Bulous enterprise, CFAO, Steyr, Bajaj and Ola Motors with a total installed capacity of 1,000,000 motorcycles. The capacity utilization peaked at 85% in 1995 and dropped to 20% in 2000 and is now 3.5%. Most of the assembly plants have stopped production since1999. Presently only Bajaj a new entrant is producing at 3% capacity. The bicycle industry can only boast of three companies with facilities to produce or assemble bicycle in the country. These are Raleigh Industries Nigeria Plc, Comrade Cycles Nigeria Ltd and Chellarams Nigeria Plc. Raleigh Industries with a capacity of 600,000 bicycles annually produced 10677, 11031 and 10667 bicycles in the year 2001, 2002 and 2003 respectively, which is at best 2% capacity utilization annually. The other companies operated at less than 5% capacity utilization. 6.4 Raw Materials Sourcing/ Local Availability The basic raw materials for the sector are available locally, but are not developed which makes the sector import dependent. Most of the raw materials for the sector are based on steel products, petrochemical based and products from the rubber industries. Only about 7% of the raw material requirements in the sector can be sourced locally, others are imported as semi-finished products. The following raw materials can be sourced either in part or wholly locally:

Carbon black can be sourced from the Warri Petrochemical plant

Polypropylene also from Warri Petrochemical plant

Sealing compounds, wax,

Adhesives, automotive paints and corrosion inhibitors. These are proprietary raw materials whose components are only known to the technical partners

Cast components 6.5 Potentials for Local Substitution The primary raw materials used in the manufacture of automotive components depend on the metallic and non-metallic ores, the petrochemicals, plastics and rubber industries. The potentials for local production of flat steel, alloys and cast products exist in the country, but are not developed. However, rubber based components for the sectors are fairly developed. Polyethylene and polypropylene are some of the petrochemical products used in the manufacture of automotive components and are available locally.

76

Table 6.2 Summary of Component, Raw Materials and Technology existing and Possible Manufacturers for Engine and Transmission

UNITS/COMPONENTS RAW MATERIALS NEEDED

TECHNOLOGY EXISTING/POSSIBLE MANUFACTURERS

Carburettor Intake manifold Cylinder head Camshaft assembly Engine block Piston assembly Piston rod Con-rod Pulley(crank, water pump alternator & A/C compressor) Timing gear Oil pump assembly Oil sump Water pump assembly Radiator assembly Flywheel

Al-alloy Al-alloy Al-alloy Steel Cast iron Al-alloy Al-alloy Al-alloy Cast- iron Cast-iron Al-alloy Al-alloy Al-alloy Carbon steel Cast-iron

Casting Casting Casting Forging/H. T. Casting/Machine Casting Casting Casting machine machine/H.T. casting casting casting pressed/welded casting

A.C.L. Otta Ajaokuta/NRC DSC and Ajaokuta ” E.S.U Tech Enugu E.S.U Tech Enugu E.S.U Tech Enugu Ajaokuta/NRC DSC/Ajaokuta DSC/Ajaokuta ACL. Otta ACL Otta ACL. Otta DSC/Ajaokuta

77

6.6 Recommendations Engine and transmission are the major components required to make the dream of the Nigeria car a reality. No vehicle is known to operate without engine. Once an engine or its components can be made or sourced locally then the dream of a locally made vehicle becomes a fait accompli. It therefore recommended that the area listed in table 6.2 should be pursued vigorously by the Council (RMRDC) and the relevant stake holders. One of such stakeholder is the Enugu State University of Science and Technology that has done a lot in the development of piston for automotive applications. Since the engine block is the major part of the engine and capability to produce it exists, the Council is also encouraged to collaborate with them to produce engine blocks.

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CHAPTER SEVEN

NON METALLIC MINERAL PRODUCTS SECTOR

7.1 Introduction

The Non-metallic mineral Product Sectors are made up of the following sub-sectors namely: Asbestos User Group, Cement Manufacturing Group, Ceramic Manufacturers’ Group, Glass Manufacturer Group and School Chalk/Crayon Manufacturers. All of these sub-sectors depend on raw materials that can be mostly sourced locally. Non-metallic mineral raw materials and products are essential for economic development. Infrastructural improvement and growth of the non-metallic mineral based manufacturing sector requires a reliable supply of good quality non-metallic minerals and a wide range of other industrial mineral raw materials. Although Nigeria has a significant potential in non-metallic mineral raw materials sourcing, development and utilization, we still continue to import some of the materials to meet the need of our industries. This is due to the fact that some of the available materials may not be exploited or are exploited ineffectively because they do not meet industrial specifications and need beneficiation. 7.2 Raw Materials Requirement The raw materials used by this sector are mainly Non-metallic Minerals with small proportion of pigments. Most of the raw materials are sourced locally. The major raw materials used by each of the sub-sector are as listed in table 7.1 below, while table 7.2 shows the sources of the raw materials, table 7.3 shows the raw materials requirements of the industries in the sector, while table 7.4 shows the occurance development and proven reserves of some non-metallic mineral raw materials in Nigeria. . Table 7.1 Major Raw Materials used by the Sub-Sectors

S/N SUB-SECTORS RAW MATERIALS

1. Asbestos Asbestos Fibre, Cement, Limestone, Cellulose Pulp, Paint etc

2. Cement Limestone, Clay, Gypsum, Shale, Bauxite

3. Glass Glass-Sand, Soda Ash, Limestone or Dolomite, feldspar, Salt Cake, Pigments, e.g. Cobalt, Chromium and Nickel

4. Ceramics Clay, Limestone, Quartz, Felspar, Kaolin, Talc, Flint, Melamine, Resin, Glaze, Zinc Oxide, Soda Ash, Pigments

5. School Chalk Plaster of Paris – Gypsum, Calcium Carbonate, Kaolin, Colourants, Binders and Wax

Table 7.2: Non-Metallic Raw Materials used by the sub-sectors and their Source

S/N SUB-SECTORS RAW MATERIALS Source

1. Asbestos Asbestos Fibre Cement Fire Sand Cellulose

Imported Local Local Local

79

Synthetic Fibre Pulp Paint

Local/Imported Local Imported

2. Cement Limestone, Gypsum Shale Laterite Clay Bed aluminum

Local Local Local Local Local Local

3. Ceramics Kaolin Felspar Quartz Ball Clay Flint Calcium Carbonate Talc Pigments Nylon film Resin Glaze Melanmine

Local Local Local Local Local Local Local Imported Imported Imported Imported

4. Chalk and Crayon Gypsum/POP Binders Colourant Calcium Carbonate Kerosine Wax

Local/Imported Imported Imported Local/Imported Local Local/Imported

5. Glass Silica Sand Soda Ash Marble Feldspar Float glass Polyvinybutyral Dolomite Sodium Sulphate Coke Limestone Cullet Pigments

Local Local/Imported Local Local/Imported Imported Imported Local Local/Imported Imported Local Local Imported

The raw materials can be divided into three major groups on the bases of source of supply.

Wholly locally sourced The raw materials under this category include: Limestone, Marble, Silica Sand, Kaolin, Ball clay, Feldspar, Quartz, Barytes, Bentonite, Gypsum and Crushed Rock aggregate. Industrialists as user companies should be encouraged to invest in the exploration of these readily available raw materials. It is strongly recommended that the importation of raw materials that can be wholly sourced locally be stopped with immediate effect as recommended in the last survey.

80

Partially locally sourced materials The major industrial raw materials under this category include, Diatomite, Zircon Sand, Sulphur, Phosphate etc. Efforts should be made by both Government and the organized private sector to step up the level of production, processing and development of those Non-metallic Mineral Raw Materials that can be partially sourced locally. Wholly imported materials The Non-metallic Mineral Raw Materials that are presently wholly imported include soda-ash, asbestos, silimanite, caustic soda, potash, salt, fluorite, bauxite, pigments, colorants, etc. Some of these materials are known to be located in various parts of the country without much effort to explore and extract them.

Table 7.3: Raw Materials Requirement by the Industries

Sub-Sector Names of Industry Raw Materials Unit Quantity Required at Current Capacity

Quantity Required at full Capacity

Source (Local/Foreign)

Unit Cost (N)

Cement Ashaka Cement Limestone Gypsum

MT 1,180,000 35408

1,200,000 40,000

Local Local

- -

Cement Company of Northern Nigeria

Limestone Gypsum

MT -

- - -

School Chalk Neritage School Chalk P.O.P. Calcium Carbonate

Kg 11,110 6840

- Foreign Foreign

1,600.00 500.00

Integrated Ventures Gypsum Kaolin Dolomite

MT

750 260 90

1,350 - -

Local Local Local

20,000.00 15,000.00 15,000.00

Zamfara Integration Venture P.O.P. Calcium Carbonate

MT 2 3

- 5

Local Local

35,000.00 -

Prymac Projects Company Gypsum Calcium Carbonate

Kg 11,000 16,000 Local 6,000.00

Glass Beta Glass Plc Soda Ash Sodium Sulphate Iron Chromate Charcoal Limestone Feldspar Sand

MT

8,000 220 40 180 7,000 2,000 40,000

8,000 220 40 180 7,000 2,000 40,000

Foreign Local Foreign Local Local Local Local

-

International Glass Industry Sand Soda Ash Limestone Feldspar Salt Cake Baryte Iron Oxide Iron Chromate Charcoal

MT

2,600 800 700 200 60 40 20 35 30

2,600 800 700 200 60 40 20 35 30

Local Foreign Local Local Foreign Local Foreign Foreign Local

-

Solid Technology Glass Sheets Profiles M/S Pipes Electrodes

M2 6.0mm Pieces

900 16,000 100,000 2,500,000

1,900 18,000 300,000 3,500,000

Foreign Foreign/Local Foreign/Local Foreign

12,000.00 1,500.00 - -

Ceramics Emenite Limited Cement Limestone Waste paper

MT

22,404 4,019 509

30,236 6,260 1,096

Local Local Local

-

82

PVA Celluose

- -

580 580

Foreign Foreign

Leprosy Centre, Uzuakoli Sand Fibre Cement Water

Kg Kg Kg Kg

5 200 60 1,000

15 500 200 5,000

Local

3,500.00 500.00 650.00 2,000.00

D.P. Pottery Clay Feldspar

MT 20 7

30 10

Local Local

1,000.00 3,000.00

Dr. Ladi Kwali Clay MT 1,300 2,600 Local 5,200.00

Dajo Potery Clay Kaolin Quartz Feldspar Bentonite Manganese Zinc Talc Calcium Carbonate Rutile Cobalt

MT

10 10 2 3 0.3 20 4 2 4 10 -

-

Local Local Local Local Local Local Local Local Foreign Foreign Foreign

-

O.A.E. Refractories Kaolin Zircon Silica Clay Limestone S.O

MT

10,000 3,000 5,000 2,500 5,000 5,000

15,000 30,000 15,000 10,000 5,000 10,000

Local

-

Front Line Ceramics Kaolin Clay Feldspar Quartz Calcium Dolomite Zinc Oxide Red Iron Oxide Sodium Striate Pigments

MT MT MT MT MT MT MT Kg Kg Kg

15,48 6.72 4.05 2.23 0.73 - 0.27 56 07 12.6

23.6 12.0 7.8 6.0 3.56 - 3.6 70 148 20

Local Local Local Local Local Local Local Foreign Foreign Foreign

3,300.00 2,800.00 2,600.00 26,000.00 12,000.00 15,600.00 26,000.00 300.00 150.00 1,200.00

Noamex Industrial Services Company

Cement Sand Plywood

MT M3 -

500 15 5,000

1,000 30 10,000

Local Local Local

840.00 5,000.00 800.00

83

Synthetic Rubber Water Proof

MT Rolls

- 7

- 15

Foreign Local

9,500.00 3,000.00

Asbestos Turners Building Products (Arewa) Ltd.

Cement Fibre Wood Pulp

MT

67,818 660 257

67,818 660 257

Local Foreign Local

1,650.00 10,157.00 1,887.00

Building Materials

Olive Industries Nig. Ltd Gypsum Filler Lime Lubricant

Kg Gm Gm Litre

Based on order -

-

-

Topaza Nig. Ltd. Clay Sand Fuel Oil Spare part

MT MT Ltr. -

- -

-

-

Karfa Mining/Stone Crushing

Rock aggregates M2 200,000 -

Local 5,000.00

Star Stone Granite MT 240 360 Local 20,000.00

Nwokporo Unah Family Ltd.

Granite MT 1,500 -

Local 7,000.00

Ebonyi State Building Industry Ltd

Cement Sand Chippings Stone Dust Rods

Kg Kg Kg Kg MT

240,000 4,800,000 2,400,000 1,200,000 8,640

240,000 4,800,000 2,400,000 1,200.000 -

Local

-

Mathia tying & Co. Clay MT 40,000 40,000 Local -

Atsa Block Industry Clay MT 20,000 70,000 Local -

Sadrom Comp. Ltd. Clay MT 45,000 100,000 Local -

Asondu Burnt Bricks Clay MT 70,000 20,000 Local -

Japi Burnt Bricks Clay MT 10,000 50,000 Local -

Dondo Burnt Bricks Industry Clay MT 45,000 60,000 Local -

Tasko Ventures Clay - 10,000 - Local -

Jakura Marble Clay - - - - -

Nigeria Bricks & Clay Prdts. Clay - - - - -

Gyartagere Clay - - - - -

Raw Materials Producers

Ebonyi Salt and Minerals Ind. Salt (Brine) MT - - Local -

Muazu Processing Co. Kaolin MT 120 1,500 Local -

A.B.D. Resources C. Sand MT 250,000 500,000 Local 1,000

Finestone Processing Ltd. Limestone MT 1,800 3,600 Local 70,000

84

Gbolahan Granite & Marble Industry Ltd.

Marble Slabs Granite Slab

M2 M2

- - Imported Imported

7,000 13,000

REM-ALL Industries Limestone MT 6,000 10,000 Local 1,800

M/S S.A. Odubanjo C. Ltd. Soda Ash Sodium Sulphate Dolomite Feldspar

MT MT MT MT

380,000 - 210,000

500,000 - -

Imported - Local Local

- -

F & G International Ltd. Kaolin Dolomite Calcite Baryte Hydrated Talc

MT MT MT MT MT MT

1500 1,000 300 300 400 60

- - - - - -

Local Local Local Local Local Local

Kaolin Processing, Gwarzo

Kaolin MT 180 3,840 Local -

Federal Super Phosphate Fertilzer Company

Phosphate Rock Sulpjruic Alum.

MT MT MT

2,480 1,895

60,000 40,000 7,500

Local Imported

-

Gangare Phosphate & Trading Co.

Phosphate Rock MT 5,000 15,000 Local 2,500

Bayaks Engineering Co.

Phosphate Rock MT 1,000 10,000 Local 2,500

Industrial Mineral Ltd.

Kaolin Felspar Calium Carbonate Baryte Gypsum Quartz

MT

1,500 8,400 1,650 120 129 150

-

Local Local Local Local Local Local

1,500.00 2,000.00 4,500.00 13,000.00 3,500.00 1,000.00

Katsina Koalin & Ceramics Kaolin Felspar Calcium Carbonate

MT

1991 1,500 900

2,500 5,000 2,500

Local Local Local

6,500.00 6,500.00 7,00.00

Jachillin Int. Nig. Ltd. Kaolin Feldspar Gypsum Mica

MT

15,000 15,000 15,000 15,000

20,000 20,000 20,000 20,000

Local Local Local Local

1,000.00 700.00 4,000.00 -

Akaraka Industry Ltd. Kaolin 380 400 Local 2,000.00

85

Calcium Carbonate Dolomite Baryte Felspar

MT

8,800 8,000 280 2,500

8,900 8,200 350 2,900

Local Local Local Local

3,000.00 3,5000.00 8,000.00 4,000.00

Anita Chemical Industry Calcite Dolomite Kaolin

MT 1,200 300 100

3,200 1,000 1,000

Local Local Local

2,900.00 2,900.00 4,000.00

Industrial Clays Nig. Ltd. Kaolin MT 6,000 25,000 Local Local

7,000.00

Pedmacgrk Mines Ltd. Rock Aggregates MT 4,000 - Local -

Crystal Talk Nig Ltd. Limestone Marble Kaolin Gypsum Phosphate Talc

MT

200 140 650 2,000 3,000 3,000

40,000 for each of the minerals

Local Local Local Local Local Local

-

NIMCO Feldpar co. Feldspars MT 2,500 7,780 Local -

Jakura Marble Ind. Barble MT - - Local -

Nigeria Coal Corp. Coal MT - - Local -

Crystal Koalin Kaolin MT 2,700 3,000 Local -

Table 7.4: Occurrence, Development and Proven Reserves of some Non-0Metallic Minerals Raw Materials in Nigeria

S/N

MINERAL LOCATION ESTIMATED RESERVE (MT)

USER INDUSTRIES EXPLOITAITON QUALITY

1. Trona Gassua and Nguru (Yobe State) Zumo (Adamawa State)

No systematic studies have been carried out

Manufacturing of glass, chemical, caustic soda alumina

Development pilot study refining of trona RMRDC should intensify production of soda ash at pilot plant

62% Sodium carbonate

2. Kaolin Kankara (Katsina) Major Porter (Plateau) Ibeshe (Ogun) Darazo, Alkaleri (Bauchi) Efon,

3.4 MT

Paint, rubber and paper industries (as fillers) cement, cosmetics, ceramic

Six plants exist with a total annual capacity of 150,000 tonnes

Purity is as high as 90%

86

Ijero, (Ekiti) Akure (Ondo) etc.

190,000.00

and abrasive manufacturers

3. Talc Kagara (Niger), Ilesha (Ogun State), Kwara, Kogi, Kaduna & FCT

40,000.00 Paint, cement, cosmetic, ceramics & insecticides

Two known plants exist with a 3,000 tonnes per annum in Kagara. Detailed reserve studies required

72% of Aluminum silicate

4. Phosphate Sokoto (Sokoto State), Ilaro, Ifo (Ogun State), Edo, Ondo and abia State

Not yet known full exploration and evaluation in progress

Phosphate fertilizers, phosphorous and phosphoric acid manufacturers

Preliminary exploration of occurrences, detailed studies required

34 – 36% P2O5

5. Asbestos Kaduna Not yet known Asbestos

6. Bauxite Gongola, Cross River & Ekiti State

Not yet known High temperature Alumina refractories

Urgent detailed exploration/evaluation

7. Ball clay Imo, Bendel, akwa-Ibom, Rivers, Ondo and Ogun States

Partial exploration and evaluation reserve is up to 50,000,000

Domestic ceramic wares and building construction

Small scale exploitation deposit meet demands of existing ceramic industries

8. Fire clay Anambra, Katsina, Ogun, Sokoto

UP to 20,000,000

Low to high temperature alumina silicate refractories

Detail beneficiation pilot project are needed

9. Limestone Mfamosing (Cross River), Ewekoro, Sagamu, Ogun State,

1,200,000 Cement, calcium carbonate and hydrated lime

Seven cement manufacturers are currently producing

85 – 95% of calcium carbonate

87

Okpilla (Edo State), Yandev (Benue State), Bauchi (Bauchi State), Sokoto (Sokoto State), Gombe, Yobe & Adamawa State

manufacturers about 2,000,000 tonnes per annum studies of production of flexes should be intensified

10. Gypsum Potiskum, fika, Fune,(Yobe State), Damboa (Borno State) Wurmo (Sokoto State), shelleng, Guyuk (Adamawa State), Bauchi (Bauchi State), Ifo, Papalanto and Ilaro Ogun State, Plateau, Imo, Edo & Benue State.

200,000.00 Cement, chalk and plaster of paris manufacturers

The cement manufacturers consume about 1000,000 tonnes. Details exploration and evaluation of all deposits required.

11. Feldspar Taraba/Adamawa, Boro (Niger State), Oshogbo (Osun State), Okene (Kogi States), Plateau, Borno, Bauchi, Ogun and Kwara States.

1,200,000 Ceramic products and glazes

Partial exploration and evaluation needs processing outfits

12. Bentonite Gashua (Yobe State), Ishiagu (Abia State) Anambra and Adamawa States, Ngala, Borno State

1,2000,000 For drilling mud in petroleum industry

Three companies produce drilling mud with a capacity of 40,000 tonnes per annum

80% sodium/calcium montmorillonite

88

13. Barytes Azara, Awe (Pateau State), Wukari (Taraba State), Abakaliki (Enugu State) Cross River State, Benue State

2,000,000 Detailed exploration and evaluation still required

Petroleum well drilling companies

Three companies are exploiting some of the deposits. To total output is about 30,000 tonnes per annum. Production capacity of Azaa should be increased

Specific gravity of 4.09

14. Flourspar F.C.T. Not yet known

15. Salt Salt spring at Awe (Plateau), Abakaliki (Enugu States) and Uburu (Imo State) Rock salt in Benue State

Partial investigation

Industrial and domestic uses

The salt deposits are not being exploited. Detailed investigation should be initiated and accelerated.

16. Gemstones Plateau, Bauchi, Yobe, Borno, Ogun, Ondo, Imo, Kaduna, Kano, Oyo and Osun State

The reserves are yet to be determined

Ornamental/jeweler and electronic industries

Very few cutting and polishing plants have been established

High purity

17. Coal Enugu State, Benue, Plateau, Kogi, Taraba, Gombe, Abia, Anambra, and Edo States

500,000,000 For production of tar, gases and oils; Cement, steel mills, industrial boilers, carbon, & station plants

Annual production is as low as 25,000 tonnes

High grade

18. Marble/Dolomite

Kogi, Oyo, Edo, Benue and Plateau States

2000,000,000 Cement and hydrated lime production. Also used in

Further refractory studies required have potential of meeting demands

89

metallurgical, building, construction and chemical industries

19. Granite Plateau, Ondo, Ogun, Bauchi, Borno, Adamawa, Kogi, Cross River, Oyo and Imo States

300,000,000 Decorative stones in homes and offices. Also used for other purposes in building construction industry

The three granite cutting and polishing plants in the country utilize about 80,000 tonnes per annum

High grade

20. Sand Glass sand in Ondo, Plateau, Lagos, Enugu, Enugu, Anambra, Rivers and Delta States. Foundry sand in Ondo and Kogi States

150,000,000 Glass manufacturers. Foundry and ceramic industries

The five glass plants in the country currently utilize 120,000 tonnes per annum. Most have been physically investigated

High silica (S1O2)

21. Kyanite Birnin Gwari (Kaduna State), Masuku, and Kuta (Niger State)

20,000,000 Used in cement industry and for manufacture of refractory bricks and mortars

The level of exploitation is very low. About 10,000 tonnes are being produced annually

Further studies required

22. Diatomite Bulafaba, Gujba, Abakire, Kwani, Ududo, etc.

About 10,000,000

For insecticides, filter medium and polishing compounds

Small scale exploitation extensive exploration and evaluation required

90

Palord Nigeria Ltd. Kaolin Bentonite Talc Baryte Dolomite Calcite Zinc Oxide

MT

720 - - - - - -

2,000 720 - - - - -

Local Local Local Local Local Local Local

AGC Nigeria Ltd Kaolin MT 60 80 -

Omega Rocks Mining Co.

Dolomite Calcite Kaolin Gypsum Feldspar Talc

MT

3,600 3,600 3,600 1,200 3,600 3,600

14,400 14,400 14,400 5,760 14,400 14,000

Local Local Local Local Local Local

-

Delta Prospectors Barytes MT - 35,000 Local -

Nigeria Barytes Min. Co. Ltd

Barytes MT

3,000 6,000 Local 2,030

Osheka Nig. Ltd. Barytes Kaolin Limestone Feldspar

MT

24,000 each 24,000 each Local -

Henley Industry Nig. Ltd

Silica Sand Soda Ash

MT 13,000 4,000

25,000 8,000

Local -

7.3 Specification of some Non-Metallic Mineral Raw Materials: The quality of any industrial raw material (including the non-metallic minerals) is a relative term since it depends on either the desired grade of raw materials, finished products or the process technology/equipment used. Most naturally occurring Non-Metallic Mineral Raw Materials usually require some form of processing/beneficiation (either mechanical or chemical) to meet the exact specifications of the required raw materials and processing technologies. The product specifications for some of the non-metallic minerals are as follows: Table 7.5 Product Specification for Kaolin in Industries

Ceramics Pharmaceutical % Steel % As Coating Agent

As Filling Agent

SiO2 48.00 48.00 5 47.80 48.70

Ai2O 37.00 36.00 0.002 37.00 36.00

Fe2O3 0.06 0.02 0.02 0.58 0.82

TiO2 0.03 0.02 - 0.03 0.05

CaO 0.10 0.10 54.28 0.40 0.60

MgO 0.30 0.20 3 0.16 0.25

K2O 1.60 1.10 - 0.10 2.10

Na2O 0.10 0.10 - 0.10 0.10

LOI 14.40 11.90 - 13.10 11.90

P2O3 - - 1 - -

Size - - 20-50m - -

Table 7.6 Product Specification for Ball Clay

Tables wares Sanitary wares Tiles

SiO2 46.0 54.0 70.0

AI2O3 31.0 30.0 19.0

Fe2O3 1.1 1.4 1.6

TiO2 0.9 1.2 1.6

MgO 0.4 0.4 0.4

CaO 0.4 0.3 0.2

K2O 2.2 3.1 2.0

Na2O 0.4 0.5 0.5

LOI 17.5 8.8 5.4

Fired Brightness (112OC) 75.0 63.0 63.0

PCE 35.0 32.0 28.0

Table 7.7 Industrial Specifications for Barytes

Glass Industry Oil Industry Paint and Paper Industry

B4SO4 97-98 97-98 98.00

AI2O3 0.10 0.10 -

Fe2O3 - - 0.03

Size um 63 Vitet screen analysis + 200% mesh 6um%

3.50

92

Specific gravity - 4.2min -

Soluble Alkaline earth metals ppm

- 250min -

Table 7.8 Specifications of Feldspar for Ceramic Industry

SiO2 65.68%

AI2O3 19.71%

Fe2O3 0.19%

CaO 0.94%

MgO 0.15%

K2O 0.09%

Na2O 4.56%

P2O3 Nil

TiO2 Nil

Table 7.9 Specification of Gypsum in Chalk, P.O.P and Ceramics

SiO2 0.39%

AI2O3 0.02%

Fe2O3 0.09%

CaO 32.32%

MgO 0.41%

L.O.I 21.01%

SO3 45.42%

Others 0.35%

Bentonite specifications for industries: Specifications for most of the products are prepared to meet the requirements of the individual customer. (a) Drilling mud To be drilling mud, bentonite must have: a dial reading at 600rpm of 30 minimum; a yield point kilograms per 9.3m2 of 3 times plastic viscosity maximum; and a filtrate volume of 13.5 maximum. (b) Foundry sand The material shall be a dry powder, free from lumps, sand and other foreign materials. A minimum of the dry material shall pass through 200 mesh (US sieve) or 75 microns (I.S. sieve). The moisture content should be 6 – 12% ; pH value of between 8 and 10; calcium oxide content of 0.70% maximum; and liquid limit of 600 to 850. (c) Absorbent

93

It must consist of a uniform mixture of minerals of the silicate type; clean, uniform and free from lumps of foreign matters; and not more than 10% can pass through 80 – mesh sieve. (d) Sodium – based bentonite For molding foundry and oil drilling SiO2 74.65% AIO3 12.96% Fe2O3 1.16% CaO traces MgO 2.77% Na2O 1.91% K2O + others 0.57% (e) Calcium – based bentonite SiO2 69.00% AIO3 13.33% Fe2O3 2.09% CaO 2.83% MgO 2.38% Na2O 1.93% K2O + others Colloidalness, % 96 min Tering temperature oC 1100 Fineness (75pm – 150pm), % 50 min

Specification for Soda-Ash in Industries For Detergent % For Glass % Na2CO3 97.5min Na2CO3 98min Moisture 2.0 max NaCI3 0.3 NaHCO3 2.0 max Fe2O3 0.003 Fe ppm 20 max Ni + Cr ppm 10 max NaHCO3 0.01 Cu ppm 1 Ar 10 Water insoluble 0.5 Dense bulk density 1005 Light bulk density 500 Appearance white crystallite powder

94

Table 7.10 Industrial Specification for Talc

Ceramics Cosmetics Foundry castings

SiO2 48.00 48.00 6.8

Mgn 31.70 5.00 31.7

H2O 4.48 0.10 4.8

Fe2O3 4.80

- Note: Talc should be ground to very fine particles.

Industrial specification of phosphate (a) Fertilizer production Moisture 0.533%

P2O5 36.45% CaO 51.64% P2O3 2.88% Fe2O3 1.34% AI2O3 1.52 CO2 3.97 FI 0.35 MgO 0.35 SiO2 3.25 SO3 0.37 CI Traces

(b) Phosphate Powder for Sausage Meat Description White Powder Phosphate solution for sausage meat Smell odourless colour red brown Solubility very soluble S.G 1.4217 Moisture 0.69 pH 7.55% P2O5 85.45 Phosphate 19.68% PH (10% solution) 8.50 Trisodium Phosphate 33.96% Bulk density kg/h 0.877 Nitrogen-Content 0.104% Total Solid 46.26%

Table 7.11 Qualitative Classification of Quartz/Silica Sand

S/N Iron-oxide content Beneficiation Type of product

1. 0.035-0.0.500 Simple washing and sorting

2. 0.080 Require the use of costly decolouring agent

Used for coloured glass production if they do not contain impurities

3. 0.100-0.200 Simple dressing of washing and Production of all types of

95

sorting white glass

4. 0.020-0.035 Dressing is complex and involves floatation, rubbing electromagnetic separation processes

Used mainly for the production of crystal glass and some optical glass.

5. 0.053-0-200 Remover of heavy minerals, floatation gravity separation sorting, rubbing of impurities

Used mainly for the production of crystal glass and some optical glass.

6. 0.001-0.010 Beneficiation involves chemically leaching in an acidic environment and electromagnetic dressing

Mainly used for the production of optical glass.

Table 7.12 Specifications for Marble/Limestone is as follows:

% Fertilizer Cement Steel

Size - 20-50mm

CaCO3 90% max

SiO2 5 max 2.49 5 max

AI2O3 - 1.25 0.002

Fe2O3 2 max 1.06 0.002

MgO - 51.94 54.28

CaO - 1

P2O3 -

SO3 -

LOI - 42.22

Others - 0.32

Specifications of Calcium Carbonate for various industries For Fertilizer production Calcium carbonate (CaCO3) 90% Silica (SiO2) 5% Iron (Fe2O3) 2% Magnesium 6% For Filler Ceramics Total carbonates (Ca, Mg) 95% min MgCO3 3.0% max Soluble 3.0% max Hardness (Mohl’s scale) 3.0 pH 9.0 – 9 – 5 Specific gravity (solid) 27.1 For Steel production SiO2 5% max AIO3 0.002% Fe2O3 0.02% CaO 54.28%

96

MgO 3% P2O3 1% max Particles size 20 – 50 min Specification of hydrated lime for water treatment and soft drink manufacture Appearance Crystalline Texture Powder/Granules Taste Alkaline Odour None Solubility Slighly soluble in water Chemical formula Composition Table 7.13 Industrial Specification of Calcium Carbonate for Cement, Fertilizer and

Glass Production Steel Cement

Production Fertilizer Production

Glass Manufacture

CaCO3 5% max 2.49% 90% -

SiO2 0.002% 1.24% 5% max -

AI2O3 0.02% 1.06 - 0.0%

Fe2O3 54.28 51.94 2% max 55.2%

CaO 3% 0.3% - -

MgO 1% max - 6% max -

P2O3 - 42.22% - -

LOI

- Nil - -

SO3 - 0.32% - -

Others - - 90% min -

Organic Matter - - - 98.5% man

Mn - -- - 0.1% max

Pb - - - 0.1% max

S - - - 0.1% max

P - - - 0.1% max

Bulk - - - 0.1% max

Density - - - 1.52

Melting Point 0C - - - 25000C

Approx. Grain 20 – 50 -

Size (min) 335 max

(tank furnace

1.0 max

Pot furnace

LOI – Loss on Ignition

97

7.4 Capacity Utilization On account of harsh economic environment, lack of sufficient raw material inputs and corresponding poor funding of their various operations, many companies were discovered to have closed down. Those establishments that have managed to remain in production were plagued by low productivity, arising from low capacity utilization; while the problem of obsolete machinery/equipment coupled with erratic power supply were quite common. This ugly picture looked almost the same and persistent among the various groups making up the Non-metallic Mineral Products Sector of the economy. The cement sub-sector is critical to our development as most of our buildings and construction activities depend on it. The supply of cement is also limited and hence the high cost of the product in our market. From the survey, the total production of cement in Nigeria fell below the national demand. Most of the companies were not producing to their install capacities while some have closed down. Again 4 out of 7 companies that registered with Cement Manufacturers’ Association of Nigeria were not in operation. Some of the non-registered cement companies are yet to establish cement plants but get involved in importation and bagging of bulk cement to make for the short fall, cement is imported. The asbestos sub-sector is very active in the Nigeria economy as their products are needed by the construction industry. Among the products produced by the Asbestos group are; fibre-cement, asbestos cement, roofing and ceiling sheets, tiles etc. Most of the raw materials are sourced locally. Ceramic sub-sector is where micro activities are concentrated largely because the venture is not capital intensive. A lot of them are not registered with the Non-metallic Minerals Sector group of MAN. The glass sub-sector’s products include clear glass sheet, containers glass and other glass wares such as laboratory apparatus. Most of the companies produce at medium and small scale. Most of the School Chalk producers are small scale enterprises with irregular patterns of product. This makes it impossible to have accurate statistics on the chalk manufacturers, and in most cases, the producers were not registered. Table 7.14 shows the operating capacities of the industries in the non-metallic mineral products sector

Table 7.14: Average Operating Capacities of the Industries in the Non-Metallic Mineral Products Sector

Sub-sector Name of Industry Product(s) Unit Unit Price

N

Quantity at

Current

Capacity

Quantity

at Full

Capacity

%Capacity

Utilization

Quantity sold as

at 2006

Cement Ashaka cement, Plc Cement MT - 719,659 800,000 90 713,759

Cement Company of

Northern Nigeria

Cement MT - 400,000 500,000 80 -

Gateway Portland

cement

Cement MT - 50,039 120,000 42 50,039

GLASS Solid Technology Doors Windows - - 1,000

6,000

Beta Glass, Plc Glass Containers Sheet

Glass

- - - -

International Glass

Industries

Glass Containers - - 18,250 18,250 100 18,000

ASBESTOS Turners Building

Products Ltd

Asbestos Sheets - - 5,500 28,000 20

-

SCHOOL CHALK Heritage School chalk School Chalk Packets 600.00 2,820 4,120 66 2,820

Integrated Ventures School Chalk Packets 1,000.00 Based on

request

50,000 - -

Prymac Projects

Company

School Chalk Packets 400.00 2,000 8,000 25 -

Zamfara Integration

Ventures

School Chalk Packets 70 92,000 - -

CERAMICS Emenite Limited Emeceli

SLW 1 & 2

B7 1 & 2 Ultimate

Emlux Tile Duracell

qualities

M2

“

“

“

“

“

374.00

722.00

1,500.00

362.00

373

322.00

322.00

- 1,575,000

20,000,000

3,000,000

87,000,000

10,000,000

4,000,000

10,000,000

Frontline Ceramics Mugs Refractory Bricks

others

Pieces

“

“

95

210.00

160.00

10,000

6,000

7,000

18,000

7,500

10,000

55

80

70

All

Mama Ocean Igbahan Ceramic wares - - - - -

Leprosy Center,

Uzuakoli

Roofing tiles Pieces 35.00 20,000 40 8,000

Noamex Industrial

Services company

Roofing

Slates

Roofing Tiles

Pieces

Pieces

180

150

10,000

7,5000

15,000

9,000

67

83

9,200

7,250

99

Hillu Clay Product Bricks, tiles -

- - -

D.P. Pottery Plates,

Jugs,

Kettle,

Tea Cups,

Ash Trays

Pieces

“

“

“

“

- 2000

2000

500

3000

-

Dr. Ladi Kwali Flower Vases

Beer Mug

Pots

Bowles

Casseroles

Tea Sets

Jugs

Plates

Candle

Stands

Pieces

“

“

“

“

“

“

“

“

“

9,000

9,000

7,000

9,000

9,000

7,000

9,000

9,000

9,000

10,000

10,000

8,200

10,000

10,000

8,200

10,000

10,000

10,000

90

90

88

90

90

88

90

90

90

O.A.E. Refractories Refractory Bricks

Refractory Cement

Refractory Mortar

Pieces

Bag

“

-

25,000

450

400

40,000

550

550

38

62

73

-

Building Materials

Olive Industries Ltd. Ceiling Tiles M2 1,000.00 On request - -

Topaza Nigeria Ltd. Decking pots Bricks Pieces - - - -

Julius Berger Plc. Granite Products MT - - -

-

Karfe Mining and

Stone Crushing

Granite Products M3 5,000.00 200,000 1,000,000 40 200,000

Star Stone Company Granite Products MT - - - -

Nwokporo Unah

Family GP. Limited

Granite Products MT 16,000.00 1,500 - -

Ebonyi State Building

Materials Ltd.

Electric Poles

Blocks

Culvert Rings

M

Pieces

Pieces

10,500.00

50,000.00

25,5000.00

300

7,000

10

2,640

11,000

120

12

63

8

Mathia Tynge and Co. Burnt Bricks Pieces - - - - -

Atesa Block Industry Burnt Bricks Pieces - 20,000 - - -

Sadrom Company Ltd. Burnt Bricks Pieces - 28,000 - - -

Asondu Burnt Bricks Burnt Bricks Pieces - 100,000 160,000 63 -

Japi Burnt Bricks Burnt Bricks Pieces - 5,000 12,000 42 -

Dondo Burnt Bricks Burnt Bricks Pieces - 40,000 70,000 59 -

Tasco Ventures Burnt Bricks Pieces - 15,000 40,000 38 -

Jakura Marble Industry Marble Bricks - 199,000- 58 114,048- - -

100

Nigeria Bricks & clay

Products Ltd.

Marble Bricks Pieces - 199,000 3,000,100 7 -

Gyartagere Stone

Crushing

Granite Products MT - 114,048 228,096 50 -

Turners Building

Products

Standard sheet

Big sheets

Flat Sheets

MT - 932

252

4,324

11,000

2,8000

14,000

9

9

31

-

Raw Materials

Products

Muazu Milling &

Processing Company

Kaolin MT 7,000.00 100 2,000 5 -

Potash Producers

Association

Potash MT 15,000.00 200,000 200,000 100 200,000

Ebonyi Salt and

Minerals Industry Ltd.

Table/Ind. Salt MT - - - - -

A.B.D. Resources

Company

Sand MT 1,500.00 130,000 190,000 30 -

Fine Stone Processing

Nigeria Ltd

Limestone MT 10,000.00 - 5,740 - -

Gbolahan Granite &

Marble Industry

White Carara Perlato

Royal Travetino

Tiles

Black A.

Granite

Grey Sand

Rosa Beta

M2

6,000.00

6,500.00

5,000.00

6,000.00

6,500.00

14,500.00

13,000.00

13,500.00

-

-

-

-

Rem-all Industries Limestone MT 8,000.00 6,000 10,000 60 6,000

M/S S.A. Odubanjo

Company

Soda Ash MT - 500,00 - - 200,000

F & G International

Nigeria Ltd

Kaolin Dolominte

Calcite

Barytes

Hydrated

Lime

Talk

MT

-

-

-

-

-

Jachillin International

Nig Limited

Kaolin

Feldspar

Gypsum

Mica

MT 1,000.00

700.00

4,000.00

-

1,250 2,000 63

1,200

Akaraka Industry

Limited

Kaolin

Calcium

Carb

MT 2,000.00

3,000.00

3,500.00

380

8,700

8,000

400

8,700

8,200

95

100

97

380

8,800

8,000

101

Dolominte

Baryte

Feldspar

3,500.00

8,000.00

4,000.00

280

2,500

350

2,900

80

80

280

2,500

Anita chemical

Industry Limited

Calcite

Dolomite

Kaolin

MT 5,500.00

6,500.00

8,000.00

1,200

300.00

100.00

3,200

1,000

1,000

38

30

10

-

Industrial Clays

Nigeria Limited

Kaolin MT - - -

- -

Pedmagrek Mines Ltd. Rock Aggregate MT 2,200.00 4,000 20,000 25 4,000

Gangare Phosphate

Trading Company

Phosphate 10,000 5,000 - - -

Bayaks Engineering Phosphae MT - 1,000 10,000 10 -

Industrial Minerals Kaolin

Feldspar

Calcuim

Carb

Baryte

Gypsum

Quartz

MT 6,500.00

7,500.00

8,000.00

18,000.00

34,000.00

7,000.00

1500

8,400

1,650

120

120

150

-

-

-

Katsina Kaolin &

Ceramics

Kaolin

Feldspar

Calcium

Carb

MT 6,000.00

6,500.00

7,000.00

1,991

1,500

1,200

5,000

5,000

5,000

40

30

24

-

Gwarzo Kaolin

Processing Plant

Kaolin MT -

165 1,666 10 -

NIMCO Feldspar &

Quartz Project

Feldspar MT

-

2317 7,000 21 -

Federal super

Phosphate Ltd.

SSP

Filter Alum

MT - 4,737 100,000 5 -

Jakura Marble Industry Marble MT - 150 - -

Crystal Talc Nigeria

Limited

Crystalizer

Limestone

Marble

Kaolin

Gypsum

Phosphate

Talc

MT

-

-

48,000

each

-

-

Nigerian Coal Co. Coal MT - 796 400,000 0.2 -

Omega Rocks and

Minerals Nig. Ltd

Calcium

Carb

MT

102

Kaolin

Plaster of Paris

Quick Lime

Feldspar

Talc

- - - -

-

Crystal Kaolin Kaolin MT - - 2,700 - -

Palord Nigeria Limited Kaolin MT - 720 1440 50 -

A.G.C. Nigeria Ltd. Kaolin MT - 8,000 90,000 9 -

Henly Ind. Nig. Ltd. Sodium Silicate MT - - - - -

Osheka Nig. Ltd. Barytes

Kaolin

Limestone

Feldspar

MT

-

24,000 each 24,000

each

- -

Nigerian Barytes Min.

Co. Ltd

Barytes MT 3,500.00 5,068 6,000 82 4,216

Delta Prospectors Barytes MT 25,000.00 4,000 30,000 7 4,000

7.5 Industries in Operation The harsh investment environment has forced some of the industries in the sector to close down. There are over 400 ceramic and pottery industries in Nigeria, however only fourteen are registered with Manufacturers’ Association of Nigeria. In case of cement sub-sector there are several cement plants in the country. However, only eight are operational, some under rehabilitation while some are under construction. Four, seven and fifteen industries are currently in operation as regards Asbestos, Glass and School Chalk/Crayon Sub-sectos respectively. The details are found in the main report. 7.6 Additional Industries Required to meet the existing National Demand There is no industry that is left out with respect to additional industry to tally with national demand. Considering the large deposit of the raw materials available in the country, industries like cement, glass, ceramics, and asbestos have abundant raw materials locally for more establishments. For example, States where limestone deposits are available, mini cement industries could be established, where such is already in existence, efforts should be made to add to the existing ones. Efforts should be made to establish two or more glass industries in the state within the riverine areas where there is abundant silica sand. More processing industries should be established in addition to the existing ones to process other non-metallic minerals like Kaolin, gypsum, feldspar, bentonite etc. It should be stated that to get the accurate number of additional industries required is to a large extent a herculian task because there is little or no adequate information on demand/supply of materials in this sector. Most of the gemstones being exploited in the country are sold or export in raw form without value addition, which leads to selling them at a very low price. In view of this, there is urgent need for establishment of lapidaries in the country. 7.7 Research and Development The level of technological research and development, relating to the use of locally abundant Non-metallic mineral resources is very low. Almost all the technological development are still based on foreign technologies. The existing infrastructures for research activities in the higher institutions and various research institutes are not adequate due to poor funding and low patronage from the industrial sector. A lot of research and development projects are on going while some are completed in this sector. However, those completed are yet to be commercialized and made available for public consumption while, those uncompleted face the problem of shortage of funds and other logistics to enable the research efforts come to a conclusive end. The existing facilities for research and development in higher institutions and research institutes should be upgraded and improve upon.

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It is very important to carryout awareness, sensitization and exhibition programmes married with empirical demonstration of such R & D results with their products. 7.15: Summary of Processing Technology of Some Non-Metallic Minerals

S/N Minerals Process Technology

1. Feldspar Exploration, quarrying, hand selection/bulk extraction beneficiation,

milling, packaging etc.

2. Kaolin Mining, Crushing, Slurrification, Decolouring, Separation of

contaminants, filtration, Drying Milling, Package etc.

3. Talc Mining, Sorting, Washing, Crushing, Screening, Milling, Thickening,

Bleaching, Dewatering, Granulation, Drying, Milling and Packaging

4. Diatomite Quarrying, Crushing, Milling, Drying, Separation, Bagging etc.

5. Mica Mining, Crushing, Milling, Bagging etc.

6. Gypsum Quarrying, Blasting, Crushing and Milling. It may be calcium to

produce POP

7. Phosphate Raw Phosphate is washed

8. Barytes Mining, Washing, Crushing, Leaching, Reaction with sodium sulphate

to precipitate basium sulphate, filtration, washing, drying milling and

packaging

9. Bentonite Mining, separation, physico-mechnical beneficiation and chemical

mechanical activation. Wet processing involves fractionation, leaching,

dewatering, drying pulverization and packaging

10 Limestone/Marble Blasting, Quarrying, crushing, milling, screening and bagging.

11. Gemstone Cutting and Polishing Sawing, Shaping, polishing, precision measurement and quality control

test.

7.8 Summary of Processing Technology of some Non-Metallic Minerals The summary of the technology of some of the non-metallic minerals is shown in table 7.15

7.9 Fiscal Policy

Given the importance of mineral resources, Nigeria's mineral policy need be clearly defined at any point in time, since a well-formulated mineral policy will result in appropriate mineral exploitation and utilization, less environmental complications, and enhanced mineral conservation. Thus, a well-defined national policy and planning effort for mineral resources development is necessary, particularly because of the current climate of rapid industrial development. Therefore, a well-designed strategy for mineral resources development that will correspond with the current direction of national economic development should be put in place. 7.10 Problems and Challenges

The same problems that have been recurring can be listed as follows:

1. This lack of opportunity to increase the value-addition of the minerals as well as the chance to develop downstream industries domestically.

105

2. There is an ongoing existence of illegal mining activities and encroachment into the others' property—such as in the gemstones, mining areas resulting in a loss of government revenues, destruction of resources, and low economic returns.

3. There is lack of coordination among government agencies such as agriculture, forestry, water, fishery, tourism and mining.

4. The, small-scale mine operators, who constitute the major group of mine operators in the country, cannot afford to shoulder the cost of providing the necessary infrastructure requirements.

5. One of the major elements in the non-metallic mineral industry is technological input. Technology in the industry generally which consists of five main areas—including mining, mineral processing, metallurgy, utilization, and environmental protection are not readily available. Research and development, and consultancy services which are important factors for improving the technological capability of the mineral industry are also not well pursued.

6. The producers' lack of financial assistance, technical services, and relevant marketing information has resulted in inappropriately developed technology and unsystematic resource management.

7. Refractory lining mineral raw materials are not locally available in required quantity.

7.11 Conclusion

Development of non-metallic mineral based products and resources is observed to be directed toward more internal utilization of locally available non-metallic minerals in domestic industries with a smaller surplus for export. Secondary mineral industries or mineral-based manufacturing industries demand non-metallic minerals as raw material input, especially in the existing important, fast-growing cement, glass and ceramic, etc. manufacturing industries.

The anticipated high future demand of non-metallic mineral raw materials necessitates the need for a greater and more efficient supply. The non-metallic minerals that have limited currently known reserves with high consumption in industries—such as cement raw materials, glass and ceramic raw materials, and energy materials—will become even more critical if additional reserves cannot be improved.

Environmental coordination with the Federal Ministry of Environment, other National Environmental Agencies and the existing legal and regulatory framework are the avenues that should be pursued in revising a mineral resources plan. Technological availability, including human resources, must be taken into consideration for efficient, systematic planning.

It is the government's duty to take the initiative in eliminating the obstacles precluding the development of the non-metallic mineral sector while also preserving the environment. Fulfilling this obligation will require skilled management. Thus, more

106

systematic mineral management strategies and a stronger emphasis on domestic development should be initiated.

7.12 Recommendations

The following recommendations are suggested towards enhancing the development and supply of non-metallic mineral raw materials, and the growth of the Non-metallic mineral products sector:

i) Beneficiation of black cotton soil:- Ca-Montmorillonite rich bentonite to produce

sodium-rich bentonite. ii) Identification of the locations of high soda-ash bearing trona occurrences and

research into beneficiation of same to produce soda ash. iii) Beneficiation of talc deposits to remove contaminants, asbestos, and other impurities. iv) Research into development of glaze materials for the ceramic industries and,

beneficiation/refining of clays; . v) Research into beneficiation and development of local foundry and refractory mineral raw materials e.g. silica sand, fire clay, zircon sand etc. vi) Research into local production of crucibles and sourcing of rare non-metals e.g.

flourspar; vii) Research into beneficiation and development of local coal for carbonization and formed coal. viii) There should be increased and well coordinated R & D, aimed at providing detailed

data on the quantity and quality of the gypsum reserves and appropriate technology for beneficiation/processing of raw gypsum to satisfy various industrial needs- production of chalk, crayon, Plaster of Paris etc.

ix) All non-metallic mineral raw materials for which the availability and quantity are not in excess of the demand by local industries should be identified and not be exported;

x) Research into design and fabrication of mineral raw materials processing equipment; and development of local technologies;

xi) Research into local sourcing and development of certain critical non-metallic mineral raw materials such as silica, refractories, etc. as substitutes for imported non-metallic mineral raw materials in the sector;

xii) Research into reduction or elimination of problem of standards and testing of non-metallic mineral raw materials;

xiii) Linkages between relevant institutions and industries for mutual benefits should be encouraged;

xiv) Issuance of prospecting licenses and mining rights should be made available and liberal;

107

xv). Illegal mining and export of unprocessed non-metallic mineral raw materials should be discouraged;

xvi) All form of restriction on the importation of essential equipment, machinery and spares should be removed to make them more available and affordable; etc.

108

CHAPTER EIGHT

PLASTIC AND TYRE SUB-SECTORS 8.0 Introduction Domestic and industrial plastics, rubber and foam is one of the most vibrant and fast growing sectors of the manufacturing industry in Nigeria. This is evident by the numerous products and particularly the emerging wide range applications of plastic and rubber. However, the 2006 Techno-economic survey only covered the industrial plastics and tyre sub-sectors. The survey revealed that industrial activities in these sub-sectors were low due mainly to poor infrastructure and the comatose state of the petrochemical plants resulting in difficulties in procuring raw materials locally. The plastics sub-sector performed slightly worse than the status in 2003 in terms of sourcing raw materials locally while the rubber sub-sector made significant improvement in this area. The prices of natural rubber has been on the increase since 2003 and this was attributed to increased global demand as well as sharp increases in the prices of synthetic rubber occasioned by soaring price of petroleum. The survey also noted inadequate power supply as a major impediment to the growth of these sub-sectors with companies resorting to the use of generators, which pushed production costs beyond economic limits. However, with expected completion and commissioning of the National Integrated Power Project (NIPP) being executed by the Federal Government since 2007, there are high prospects of increased capacity utilization in manufacturing generally. 8.1 The Plastics Sub-Sector The Nigerian plastics industry is largely made up of small- and medium-scale companies with the technical capability to fabricate simple and non-complicated products. Besides meeting the local demand, the industry also supplies to the West and Central African sub-regions. According to a World Bank report, the industry’s turnover was over US$30 million in 2006. The growth in the industry has been hampered by the lack/inadequacy of requisite inputs and infrastructures such as resins, power supply, good roads, water supply, communications and access to investible funds at reasonable interest rates from financial institutions. The leading markets for plastics are in packaging, building and construction and the automotive/ transport industries, all of which have generally been buoyant. However, a number of other industries which use some form of plastics such as the textile, clothing, electrical, electronic, mechanical engineering and agricultural industries, have experienced

109

a profound downturn in demand, as they struggle to adjust to changes in the market for their products and against a rising tide of imports. The study revealed that between 2003 and 2006, the number of plastic processing outfits in Nigeria has reduced as a result of high cost of production due to inadequate power supply and difficulty in the procurement of raw materials particularly resins. Currently, there are about 90 major plastics processors in the country and many more micro and small scale processors in the informal sector. 8.2 The Petrochemical Industry The petrochemical sector of the Nigerian economy was developed as part of the country’s industrialization process to maximize the socio-economic benefits from the Nigeria’s oil and gas industry through the promotion and establishment of downstream petrochemical industries that add value, create wealth and generates employment while contributing to improvement in the quality of life of the Nigerian citizenry. The initial investment (first phase) was focused on integrating some petrochemical units into the existing petroleum refining facilities which resulted in the installation of linear alkyl benzene production unit at Kaduna Refinery and polypropylene and carbon black units at Warri Refinery by the Nigerian National Petroleum Corporation (NNPC). The polypropylene and carbon black production units at Warri Refining and Petrochemical plant have installed capacities of 35,000 metric tonnes (MT) and 18,000 MT per year respectively. The second phase of the petrochemical development programme was the establishment of the Eleme Petrochemical complex in Port Harcourt which came on-stream in 1995 with the commissioning of:

Polyethylene (LLDPE, HDPE) plant with an installed capacity of 250,000 metric tones per year.

Polypropylene (homo and co-polymer) plant with an installed capacity of 80,000 metric tones per year.

The Warri Petrochemical plant has an installed capacity of 35,000 MT of Polypropylene and 18,000 MT of Carbon black per annum. The Eleme Petrochemical complex was commissioned to produce the plastics resins for use by downstream processors for the manufacture of plastic products. The raw materials for the plastic industry consist of polymeric resins and additives, which are mostly petrochemical based. Those of the tyre industry include natural rubber, carbon black, additives, accelerators, etc. Also, prices of crude oil have increased by over 50% between 2003 and 2006. This has a direct effect on the prices of plastic products. Apart from the increase in the prices of raw materials for plastics production, the survey noted the challenge posed by middlemen in the supply chain of this sub-sector.

110

It is hoped that the privatization of the Eleme Petrochemical Company Ltd, Rivers State, will greatly improve raw materials supply and reduce frustration currently encountered by indigenous plastic processors. From the survey as shown in Table 1.4, LDPE was the most sought after of the resins in the plastic sub-sector with national demand amounting to 2,000,000 MT. Others include polymers of propylene, HDPE, PVC. Also, worthy of mention was the high demand for D.O.P (plasticizer) in the year under review with national demand of 3,500,000 MT. Most of the raw materials for the sector were sourced locally and by importation. It should also be noted that the Eleme Petrochemical Company Ltd has the capacity to meet local demand for polymers of ethylene and propylene if in full operation. It should be noted that the demand for household plastic products is and will continue to be on the increase, which can be attributed to growth in population and exportation to neighbouring countries. Compared to the developed economies, Nigeria’s plastics industry is still in its infancy but the growth is phenomenal. The plastic products are dominated by household wares, industrial containers, packaging materials, etc. In addition, since 2003, there has been an increase in the manufacture of products of specialized engineering applications.

8.3 The Tyre Sub-Sector There are two major tyre-manufacturing companies in Nigeria namely; Dunlop Nig. Plc and Michelin Nig. Plc. There are also some re-threading efforts. Dunlop Tyre factory is located in Ikeja, Lagos. It started production of car tyres in the early 1980s. In 2006, the company commenced the local production and marketing of super-steel radial truck tyres in addition to the manufacture of grader and agricultural tractor tyres. Pamol Nig. Plc, a subsidiary of Dunlop Plc, is responsible for the cultivation and processing of natural rubber, which is a major raw material in the sub-sector. Michelin’s Port Harcourt factory was established in 1962. The company produced tyres and tubes for vans, cars and trucks; with a sizeable proportion of its products being exported. The company was getting its supply of natural rubber from four plantations in the country covering a total area of more than 12,000 hectares. The surplus was exported to other Michelin tyre plants worldwide.

Imported tyres are in stiff competition with locally manufactured ones. In 2007, Michelin Nig. Plc closed down its Port Harcourt factory attributing it to unfavourable climate (energy cost particularly). It has, however, continued to maintain the rubber plantations producing the raw materials for her tyre plants all over the world. Also, Dunlop Nig. Plc has shut down its factory in Rivers state for the same reason. The key raw materials for the tyre sub-sector namely; natural rubber and carbon black were sourced locally.

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Raw materials requirement

Tables 8.1 and 8.2 show the raw materials utilized by the plastics and rubber sub-sectors respectively. Table 8.1: Raw Materials for the Plastic Sub-sector

S/N MAJOR RAW MATERIALS ADDITIVES

1 Linear Density Polyethylene (LDPE) Titanium dioxide

2 High Density Polyethylene (HDPE) Calcium carbonate

3 Polypropylene (PP) Master Batches

4 Poly Vinyl Chloride (PVC) Stearic acid esters

5 Polystyrene (PS) Dioctyl phthalate

6 Polymethylmethacrylate (PMMA) Zinc oxide

7 Nylon

8 Polyvinylacetate

9 Polyester

10 Polyethylene scraps

11 Polypropylene scraps

Table8.2 Raw Materials for Rubber Sub-sector

S/N MAJOR RAW MATERIALS ADDITIVES

1 Natural rubber latex Zinc oxide (filler)

2 Natural rubber lumps Titanium dioxide

3 Polybutadiene Kaolin (filler)

4 Polychloroprene rubber Benthiazole (accelerators)

5 Sulphur Paraffin oil

6 Carbon black

The raw materials can also be classified into Petroleum-, Agro- and Chemical-based in line with Manufacturers Association of Nigeria (MAN)’s classification, Table 8.3A - C. Table 8.3A Petroleum-based raw materials

SUB-SECTOR RAW MATERIALS

Plastic LDPE, HDPE, PP, PVC, PS, PMMA, Nylon, Master batches, Polyethylene scraps, Polypropylene scraps

Rubber Carbon black, Sulphur, Parafin wax

Table 8.3B Agro-based raw materials

SUB-SECTOR RAW MATERIALS

Plastic Nil

Rubber Natural rubber

Table 8.3C Chemical-based raw materials

SUB-SECTOR RAW MATERIALS

Plastic Dioctyl phthalate, Stearic acid and its esters, Calcium carbonate, Zinc oxide

Rubber Ammonia (coagulant), Acetic acid (Anti-coagulant)

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Table 8.4: Raw materials for the plastics sub-sector indicating full capacity requirements, national demand, current capacity, and shortfall for 2006.

S/ N

RAW MATE-RIALS UNITS

FULL CAPACITY REQUIREMENT (ANNUAL)

CURRENT CAPACITY (ANNUAL)

SHORTFALL (ANNUAL) NATIONAL DEMAND

2003 2006 2003 2006 2003 2006

1 HDPE MT 126,000 135,000 79,000 96,000 47,000 39,000 135,000

2 Filler - - - - - - - -

3 HIPS MT 44 80 20 40 24 40 80

4 Carbon Black MT 165 185 116 101 49 22 185

5 Resins MT 6,000 7,000 3,000 3,000 3,000 4,000 7,000

6 Lanette Wax MT 360 360 220 160 140 200 360

7 ABS MT 211 332 90 120 121 212 332

8 Polyacetal MT 44 80 20 30 24 50 80

9 Polyamide MT 44 80 20 25 24 55 80

10 Pigments MT 10 12 8 5 2 7 12

11 Steel Wire MT - - - - - - -

12 Essential oils M3 144 144 88 64 56 80 144

13 Kaolin MT 1,500 1,500 900 - 600 - 150

14 D.O.P (Plasticizer) LT 1,400,000 3,500,000 600,000 1,400,000 800,000 2,100,000 3,500,000

15 Master Batch MT 2,000,000 23,000 1,600,000 6,000 1,400,000 17,000 23,000

16 Thinner MT - 12 - 6 - 6 12

17 Printing oil MT - 12 - 6 - 6 12

18 PVC MT 2,000 3,000 950 1,500 1,050 1,500 3,000

19 Polypropylene MT 153,000 172,000 100,000 92,000 53,000 80,000 172,350.

20 LDPE MT 2,000,000 2,000,000 600,000 12,000 1,400,000 1,988,000 2,000,000

21 Epoxidized Soya bean oil

- - - - - - - -

22 Tin stabilizer MT 60 73 24 34 36 39 73

23 GPPS MT 160 290 85 120 75 170 290

24 LC stabilizer - - - - - - - -

25 DOP MT 1,880 1,880 1,040 1,110 840 770 1,880

26 Polystyrene MT 400,000 400,000 18,000 18,000 382,000 382,000 400,000

27 Dioctylnanyl- phthalate

- - - - - - -

28 Nylon 10,160 20,160 8,000 20,000 160 20,160 20,160

29 Sulphur 17 11 7 6 5 11 11

30 MBT 7 7 4 4 4 7 7

31 MBTS 4 4 2 2 4

32 LLDPE 2360 2360 2070 1602 290 2340

33 Calcium Carbonate MT 400 480 160 220 240 480

34 Stearic acid MT 10 12 3 5 7 12

Note: The list for each of the sub-sector covered is not exhaustive considering the number of companies that responded. Also, the shortfall was computed from the difference between requirements at full capacity and current capacities. The national demand for each of the raw materials was based on the full capacity requirement.

113

8.4 Industries Operating in the Sector

The study revealed that a total of 87 companies participated in the survey, out of which 52 completed the questionnaires adequately. The remaining 35 companies returned poorly filled questionnaires. The capacity utilization of companies that responded ranged from as low as 10% - 75%. However, Table 8.5 is the capacity utilization profile for plastics products and tyres & tubes from 2003. Table 8.5A Capacity Utilization for Plastic Products (%)

YEAR

2003 2004 2005 2006 2007

CAPACITY UTILIZATION

50.67 51.42 53.0 64.88 89.0

Table 8.5B Capacity Utilization for Tyres and Tubes (%)

YEAR

2003 2004 2005 2006 2007

CAPACITY UTILIZATION

38.9 23.0 80.0 64.0 68.0

Source CBN Report ……….

For the plastic sub-sector, the increase in capacity utilization in 2007 is indicative of the commencement of sustained production at the Eleme Petrochemical Company ltd, now under the management of the Indorama Group; after the privatization process. Also, the drop in capacity utilization for the tyres and tubes is occasioned by the shutdown of manufacturing operations by Michelin Nig Plc and the reduction in production by Dunlop Nig. Plc. In the tyre sub-sector, only Dunlop Nig. Plc out of the two major tyre manufacturing companies partially completed the questionnaires and only one out of all the existing re-threading companies participated but did not provide vital production data.

8.5 Industries that could be Established

The current performance of the three petrochemical plants operating in Nigeria is an indication that the country has adversely affected dependent industries. Many industries that will utilize petrochemicals as raw materials could not be established. This is so because out of the eleven products from the stage one of the Eleme plant, only polypropylene and polyethylene resins are being produced. The second phase, which is to produce polyvinyl chloride is yet to commence. The need for more petrochemical plants cannot be over-emphasized, as there is a great potential for the production of some important polymer resins locally.

Other industries that could be established in the sub-sector include: i. Master batch compounding for batch plastics and rubber ii. Recycling of spent plastics

114

iii. Stabilizers production particularly for the production of PVC pipes. Less toxic

alternatives to Lead sulfurnate would be more advantageous. iv. Lubricants production (lubricants are used in the plastic industry to facilitate the

processing of a variety of polymers). v. Natural rubber processing to add value to natural rubber for the production of

protective sheaths eg surgical gloves, hand gloves, balloons, condoms, etc. vi. Production of adhesives from natural rubber for shoes, textiles and other industrial

applications including the manufacture of tyres and belts.

8.6 Raw Materials that could be Developed or Sourced Locally Table 1.8 shows available raw materials that could be developed or sourced locally. For the plastic industry, all the resins are petrochemical-based. Therefore, the establishment of more petrochemical plants should be encouraged. Production of natural resins such as alkyd resins from seed oils as alternatives should be given attention. Epoxidized esters of soyabean oil are suitable alternatives for lead sulphate as stabilizers. Also, local substitutes for lubricants currently in use (stearic acid and methyl stearates which are imported) can be developed from fatty acids derivable from vegetable oils in the country. Table 8.6

SUB-SECTOR RAW MATERIALS

PLASTIC Spent plastics, Polypropylene, Polyethylene, Additives, Lubricants, Stabilizers, etc

TYRE Natural rubber, Carbon black, Adhesives, Stabilizers, Colourants and Additives.

8.7 Raw Materials Specifications The specifications of raw materials for both plastics and tyre sub-sectors are given below. Plastic sub-sector Table 8.7 Polystyrene sheets

PARAMETER SPECIFICATIONS

No 1 No 2 No. 3

Tensile strength N/mm2 Kgf/mm2

18.6 1.9

18.6 1.9

Impact strength J/cm Kgf/cm/cm

- -

0.49 5(minimum)

0.49 5

Deflection Temp under Heating oC - 75 (minimum) 75 (minimum) Elongation of shrinkage after heating % Within 5 - 40 Within 5 - 40 Within 5 – 40

115

2. Polyamide Resin (for the production of ink) Melting range oC : 105 –115 Nonvolatile content % : 100 Acid number mgKOH/g : 2.7 Specific Gravity (20 oC) : 0.97

3. D.O.P (plasticizer) Di-iso-ocylththalate (for the production of ink) Molecular weight : 390 Flash point oC : 150 Specific Gravity : 0.988 4. Plasticizer (for synthetic Leather Manufacture) Phthalate ester : C8 to C10

Alcoholic : Di -Octyl-1- phthalate : Di-Nonyl-1-phthalate : Di-Iso-Decyl-1-phthalate 5. Printing oil (inks for flexographic & letter press) in light/ heavy packaging materials Basic component : Hydrocarbon Stability : in 5% NaOH solution 6. White pigment (for paint manufacture) TiO2 contents % : 95 (minimum) Specific Gravity : 4.0 Oil absorption mm/g : 19 PH (aqueous solution) : 7 – 8 7. Resins (Nitro Cellulose resins) for paint manufacture Solid content % : 30 8. Acrylic Resins (Methylacrylate / Butyl metacrylate co-polymers) for manufacture of ink Non-volatile content % : 100 Specific Gravity : 1.09 9. Epoxy Resins (for the production ink) Molar mass : 575 – 7000 Viscosity, poise : 1.7 – 30 10. Carbon black (for paint manufacture) Specific Gravity : 1.8 Oil absorption mm/g : 86

Average particle size m : 0.029

116

Carbon black (for manufacture of ink) Specific Gravity : 1.7 – 1.9 Oil absorption mm/g : 36 PH (aqueous solution) : 10 Screen residue % : 0.05 11. Polyester chips (for the manufacture of polyester)

Degree content % wt : 1.05 0.15 COOH content % : 30 (max) Melting point oC : 258

Ash content % wt : 0.35 0.05 Dust % wt : 0.1 (max) Moisture % wt : 0.3 (max) 12. Master Batch Material : Black PE Master batch Application : Film moulding Test Limit Physical form : Regular pellet Colour : Black Black loading : High colour type for use where a 40% Carbon black loading is adequate Typical Carbon Black : 25 – 30

Particle size m: Tint strength % : 110 Base Resin : LDPE Melt Index 10.8Kg/190oC : 8 Moisture content % : 0.3 Typical LDR % : 3 – 5

13. Filler (ground coal) Three grades based on particle size, ash and moisture content are used.

Grade 1 Grade 2 Grade 3

Average particle size m 5 - 20 6 – 27 7 –28

Retained on 325 mesh g 0.0100 0.0450 0.0950

Retained on 100 mesh g 0.0003 0.0005 0.0010

Ash % 5 6 7

Alpha quartz % 1.0 1.50 2.0

Heat loss % moisture 0.5 0.75 1.0

Acidity % 0.02 0.02 0.02

Volatile matter % 20 20 20

Density (mg)/m3 (specific gravity) 1.36 1.45 1.55

117

Rubber Sub-Sector

1. Sulphur Appearance : Light to pale yellow powder

Property Specification

Organic material % 0.05 (max)

Volatile matter % 0.05 (max)

Ash % 0.3 (max)

Insoluble in CS2 % 0.3 (max)

Acidity % 0.005 (max)

Dry sieve analysis % retained on 200 microns mesh screen 5 – 10

2. Stearic Acid Appearnace : Fine powder or flakes

Property Specification

Mineral acid Nil

Acid value mg/g 193 – 199

Titre ml 66 (max)

Iodine value % 1.0 (max)

Loss on heating % 0.2 (max)

Ash % 0.05 (max)

Fat unsaponifiables and insolubles % 0.05 (max)

3. Zinc Oxide (ZnO) Appearance : White powder used as vulcanizing agent in

tacky halogenated elastomers

Property Specification

Surface Area m2/g 4.3 0.3

Specific Gravity 5.6

Zinc Oxide % 99,5 (min)

Lead % 0.08 (max)

Cadmium % 0.08 (max)

Loss of heat at 105oC 0.50 (max)

Wet sieve analysis % retained on 45 mm 0.10 (max)

4. Sulfur (Rhombic (ordinary Ground) A rubber vulcanizing agent, critical additive. Sulfur develops basic performance

properties in vulcanized compounds such as tensile strength, elongation, modulus and hardness.

118

Properties Specification

Sulfur %

Acidity %

Ash %

Loss on heating at 105oC %

Residue on standard sieve - 180 mm - 75 mm - 45 mm

<0.3 5 – 15 N/A

5. Kaolin Natural mineral powder consisting essentially of hydrated magnesium silicate. It

should be free from extraneous impurities and grit.

Properties Specification

Silica, Alumina ratio 1 – 1.5

Particle sizes less than 2mm % 75 (min)

Particle sizes less than 10mm % 95 (min)

Residue on 45 mm sieve % 0.2 (max)

Residue on 125 mm sieve % 0.01 (max)

Total Copper (Cu) mg/Kg 25 (max)

Total manganese (Mn) mg/Kg 50 (max)

Total Iron (as Fe2O3 1.5 (max)

Matter volatile at 105oC % 2.0 (max)

Loss on ignition at 1000oC % 14 (max)

PH of aqueous suspension at 27 2oC 4.5 – 9.5

Relative density 2.5 – 2.6

Matter soluble in water % 0.5 (max)

Matter soluble in HCl % 2.5 (max)

6. Raw Rubber a. Butadiene oxide : 100,000 parts/mass b. Zinc oxide : 3,000 parts/mass c. Stearic acid : 2,000 parts/mass d. Oil : 15,000 parts/mass e. Sulfur : 150 parts/mass f. TBB : 0.90 parts/mass

Physical and composition property requirements for rubber compounds

Grade designation B50 B60 B70 B80

Hardness after vulcanization (IRHD) 60 70 80

Density (mg/m3) ± 0.02 agreed value 54±0.02 54±0.02 54±0.02 54±0.02

Minimum Tensile Strength (Mpa) 10.50 10.50 9.0 9.0

Minimum elongation at break % 5.50 450 350 300

Maximum compound set % 30 25 25 25

119

7. Phthalic Anhydride (for tyre manufacture)

Phthalic anhydride % : 85.5 2.0 Dicyanodiamide % : 15 Specific Gravity (typical) : 1.47 Ash at 550oC % : 1.0 (max) Residue 150 microns dry sieve % : 1.0 (max) 8. N.Tertiary Butyl-2-Benzothiazole sulphonamide (for tyre making) General description: A beige solid available in variety of physical forms, preferable non-dusty.

Property Specification

Specific Gravity 1.27

Active matter % 97.0 (min) (95.0 (min) if a binding or coating additive is present).

Melting range ºC 103 – 109 (101 – 107 is acceptable for oiled powder)

Ash (550oC) % 0.4 (max)

Volatile matter % 0.4 (max)

Foreign matter % 0.05 (max)

Residue on 90 m wet sieve % Free MBTS % Free T-Butylamine % Oil content %

0.03 max (powder only) 0.5 (max) 0.5 (max) Nominal value (for oiled powder)

9. Carbon Black (for tyre)

N326 N660

Characteristic VSIRB4 VSIRB5 proposed VSIRB4 VSIRB5 proposed

Specific gravity 1.80 1.80

Iodine absorption value mg/g

83 5 36 5

DBP absorption No m/100g

72 5 91 5

Tinting strength % IRB3

109 5

CTAB surface area m/g

84 5

Compressed DBP absorption No (24 m4), m/100g

68 Typical 75 Typical

Loss 105o Bulk Gas

1.0 max 2.5 max

1.0 Max 1.5 max

Ash content % Grit content % -

180m sieve

0.75 (0.5 max) 0.010 max

0.010 max

45m sieve 0.10 max 425 30

Pour density g/l 440 30

Fine content % Bulk Gas

7(10) max 7(15) max

7 (10) max 12 (15) max

Cure Temp oC 145 145 145 145

Cure Time mins 50 50 50 50

Tensile strength (Mpa)

-2.0 min -2min -9.0 min -9.0 min

Elongation at break %

0min 45 min

120

Note

1. Rheomate Test conditions Minimum Torque, ML, in Lbf Maximum Torque, MH, in Lbf Scorch Time ts 2 min Cure Time t’c (50) min Cure Time t’c (90) min 2. Figures in () for dry palletized blacks 3. Proposed values against IRB5 are based on the differences between IRB5 and IRB4

being Tensile strength 00 Mpa Elongation at break – 45%.

8.8 R & D Activities in the Sector

A good number of research and development activities have been carried out in Nigeria by research centres, tertiary institutions and private companies to broaden the applicability and range of services of plastic products. The R & D activities involve blending resins before processing, thermal treatment to improve the physical and chemical properties of plastic products for special applications. Whereas a number of research studies have been carried out on the environmental and health hazards of plastic materials and wastes, none has addressed the need to develop environmentally degradable plastic as a way of addressing the environmental and health hazards of plastic products and wastes. This is due to lack of information and limited awareness on the prospects and benefits of developing environmentally degradable plastics from renewable resources and agro-waste. However, the study revealed that there were no serious research and development activities in the industries. There was also an improvement in the number of skilled personnel in the sector as most of the maintenance work was carried out locally.

8.9 Raw Materials Process Technology, Machinery and Products 8.9.1 Process flow There are several different processing methods used to make plastic products. Below are the main methods in which plastics are processed to form the products that end consumers use. Table 8.7

S/N Molding Process Products

1 Extrusion molding Pipe, fibre, film, sheet and thermoforming, profile, pipe, wire and cable etc.

2 Injection Molding Bucket, housing of office automation equipment

3 Blow molding Container, bottle

4 Vacuum forming Packase for egg (thin film product)

5 Pressure forming Suitcase (thick sheet product)

6 Rotation molding Bottle, doll

121

The plastic production flow chart is given below.

Fuel

Petrochemicals

Fertilizers, Solvents,

etc.

Monomers: Ethylene, Styrene,

Propylene, VCM, etc.

Synthetic Rubbers, Tyres

Plants

Synthetic Fibres, Clothing,

Carpets, etc

The most common process technologies used in the sector are compounding, extrusion, injection, moulding, compression moulding, calendaring and vulcanization (Table 1.11). The study noted that most of the equipment and machinery are imported, however, there has been some improvement in the local sourcing of equipment and spare parts in the sector as part of efforts to improve capacity. The locally fabricated equipment and spare parts were rated either efficient or very efficient by the user industries.

Crude Oil and

Natural gas

Plastic Resins: Polyethylene, PVC, Polystyrene, Polypropylene, Polyurethane, Polyester, Nylon, ABS, Acrylic, etc.

Machinery and

Moulds

Plastic Products Auxiliary

Materials

Bathtubs, Bottles, Brushes, Buttons, Combs, Cups, Cushions, Cutlery, Dish Pans, Egg Cartons, Eye Glasses, Fishing Rods, Garbage Bags, Glazing, Grocery Bags, Hangers, Insulation, Luggage, Mattresses, Meat Trays, Milk Jugs, etc.

Components for: Automobiles, Airplanes, Buildings, Electrical, Electronics, Houses, Leisure, Medical Devices, Office Equipment, Packaging, Radio, Refrigeration, Shoes, Snowmobiles, Sports, Television, etc.

122

Table 8.8 SUMMARY OF PROCESSING FACTS IN THE PLASTIC INDUSTRY

Physical state of plastic

Process Source

of

machine

ry

Temp. Req.

(oF)

Typical

Force Req.

Type of shaping

device

Entering

process

During

process

Conclusio

n process

Type of

plastic

used

Example

of plastic

materials

Consumer

products

Compression moulding

Foreign Mold 280 to 380

2000 – 15000

Matched molds Solid, powder or pellet

Liquid or soft solid

Solid Thermosets usually

or

thermopla

stic

Alkyds, melamine,

urea,

phenolis

Plastic dinner ware, radio &

television

cabinets,

furniture

drawers,

buttons, knobs,

handles,

electrical parts

Transfer

moulding

“

Transfer

chamber &

mold 280 – 380

6,000 –

12,000

Closed mold,

sprone to transfer

chamber

Solid, powder

or pellet

Liquid Solid Thermopl

astic

Alkyds,

melamine,

urea, phenolis

Terminal

block

insulation, intricate

shapes such as

cups & caps for cosmetics

bottles

Injection moulding

“

Cylinder 300 – 650, mold

100 to 140

5,000 – 40,000

Closed mold, connection to

injection nozzle

Ssolid Liquid Solid Thermoplastic

Acrylics, nylon,

polystyren

e, vinyls, fluorescen

t bone

Toys, bathroom &

kitchen wall

tile, electrical appliance

parts,

refrigerator dishes, battery

cases, fan

housings, radio cabinets

Extrusion

“

Cylinder 300

– 500

500 – 6,000 Die opening

shaped to cross

section of

extrudate

Solid Liquid Solid Thermopl

astic

Acrylics,

polyethyle

ne, nylon,

polystyren

e, PVC

Rods, tubes,

sheet,

moldings

Blow moulding

“

Mold cold to 200 parison

300 – 500

40 – 100 Hollow split mold

Soft, solid Soft, solid Solid Thermoplastic

Polyethylene

Squeezable bottles

123

Calendaring

“

Rolls 300 to

400

Force

depends on viscosity,

length &

diameter

Pairs of smooth

or patterned rolls

Liquid Liquid Solid Thermopl

astic

Polyethyl

ene, PVC

Polyethylene

films & sheets, shower

curtains,

rainwear, floor coverings,

clear films for

packaging

Laminating “ 300 – 400 1,000 – 1,500

Usually flat or patterned plates

Solid or liquid Liquid Solid Thermosets

Phenolics, melamine,

polyesters

, epoxy, silicone

Industrial laminates,

such as gears,

bearings, pinicons, cans,

puuleys,

panels, and terminal

bounds for

electrical printed

circuits

Cold moulding

“

Room temp for pressing

450 cure

2,000 – 4,000

Matched molds Solid Solid Solid Thermosets

Phenolics, urea,

melamine,

polyesters

Electrical parts such as

switch bases,

plugs, handles & Knobs

Plasticol

casting

“

250 – 350 Rotational

force in one type, others

none

Solid pattern or

split hollow mold

Liquid Soft (often

flexible)

Solid

(often flexible)

Thermopl

astic

Polyesters

, acrylics

Hollow

articles e.g. plastic fruits,

toilet floats,

squeeze bulbs, flexible

gloves, doll

shoes

Thermoforming

“ 275 – 400 5 or 10 up to several

hundreds

Solid pattern of open mold

Solid Solid Solid Thermoplastic

Cellulosics,

Vinyls,

styrenes, polyolefin

s, acrylics

Housing for typewriters,

phones and

duplicating machines,

aircraft

industries

(wind shield,

bomber

blisters) arm rests, serving

trays

124

Table 1.8

Reinforcing

“

Room Temp

cure at 200 – 300

None in

some, several

hundreds

for others

Solid patterns,

open mold matched molds

Liquid or

putty

Liquid Liquid Thermose

ts

Epoxies,

phenolics, alkyds,

melamine,

vinyls, silicones,

polyesters

Transportation

, cabs, interiors,

sealing in

trains auto and trucks, bodies

housing

corrugated fibre glass

panels,

industrial parts, tote

trays,

transformer components

Foam

molding

(physical)

“

250 – 275 Approx 50

to hold

mold together

Closed mold Gas filled

beads

Softened

beads

Solid

(closed

cell)

Thermopl

astic

Polystyre

ne

Foams,

insulators,

containers

Foam

moulding (chemical)

“

Resin Temp Approx 50

to hold solid

together

Closed mold Two liquids Liquid solid Thermose

ts or thermopla

stic

Polyureth

ane

Foams

125

8.10 Fiscal Policies Affecting the Sector The following government policies currently affect the sector: Plastic sub-sector:

2. The Eleme petrochemical complex has been privatized in a bid to ensure improved local supply of basic raw materials to the plastic industry. The management of the complex is currently under an Indonesian Consortium called the Indorama Group.

3. Government has banned the importation of manufactured plastics household goods. 4. Consequently, 10% import duty has been placed on grades of polyethylene and

polypropylene resins.

5. Deregulation of petroleum products has commenced with the aim of making these products readily available for industrial and domestic use.

The tyre sub-sector:

1. Due to the epileptic supply of carbon black locally, Dunlop Plc in particular has resorted to obtaining its supplies from South Africa. Approvals for Turn Around Maintenance (TAM) of the Warri Petrochemical Plant has been secured with a mandate to produce sufficient carbon black and other petroleum based additives for the rubber and plastics industries respectively, as there is sufficient local market.

2. There has been a Presidential Initiative on rubber production, utilization and marketing. It is a 12 year development plan (2006 – 2017) for the cultivation of 360,000 ha of natural rubber. This was as a result of progressive reduction from 240,000 ha in 1965 to about 150,000ha currently in rubber cultivation. Yields have equally reduced due to age of trees as 70% of the plant population is over 30 years old.

3. 40 % duty was placed on imported tyres in order to grow the local industry.

126

Table 8.9

HEADING/ H.S.CODE

DESCRIPTION SU NG DUTY RATE %

New pneumatic tyres, of rubber

4011.2000.00 Tyre of a kind used on buses and trucks Kg 10

4011.5000.00 Bicycle tyres and tubes Kg 10

4011.4000.00 Of a kind used on motorcycles Kg 10

4011.6100.00 Of a kind used on agricultural or forestry vehicles and machines

Kg 10

4011.6200.00 Of a kind used on construction or industrial handling vehicles and machines and having a rim size exceeding 61cm

kg 10

4011.6300.00 0f a kind used on construction or industrial handling vehicles and machine and having a rim size exceeding 61cm

Kg 10

4011.6900.00 Other Other

Kg 10

4011.9200.00 Of a kind used on agricultural or forestry vehicles and machines

Kg 10

4011.9300.00 Of a kind used on construction or industrial handling vehicles and having a rim size not exceeding 61cm

kg 10

4011.9400.00 Of a kind used on construction or industrial handling vehicles and having a rim size not exceeding 61cm

µ 10

4011.9900.00 Other µ 10

Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber

Retreaded tyres

4012.1100.00 Of a kind used on motor cars (including station wagon and racing cars)

µ 10

4012.1200.00 Of a kind used on buses or lorries µ 10

4012.1300.00 Of a kind used on aircraft µ 10

4012.1900.00 Other µ 10

4012.2000.00 Used pneumatic tyres µ 20

4012.9000.00 Other µ 10

Inner tubes, of rubber

4013.1000.00 Of a kind used on motor cars (including station wagons and racing cars), buses or lorries

µ 20

4013.2000.00 Of a kind used on bicycles µ 20

4013.9000.00 other µ 20

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Other incentives that affect the two sub-sectors include:

i) Tax holidays for companies enjoying pioneer status ii) Tax concessions for local raw materials utilization iii) Tax relief for companies that carry out their R & D locally iv) Provision of soft loans through the Bank of Industry and other

interventions e.g. The Small and Medium Industries Equity Investment Scheme

v) Deregulation of the petroleum and communication industries vi) A hundred percent physical inspection of goods which could

improve competitiveness of local products vii) Increased surveillance of the industry, leading to reduction in

dumping and the manufacture of fake and sub-standard products.

8.11: Recommendations The recommendations are based on the challenges facing the sub-sectors. Raw materials a. Plastics sub-sector

The raw materials in this sub-sector are largely imported. It is estimated that only about 10% of total raw material requirement is sourced locally. The privatization of Eleme Petrochemicals complex is a step in the right direction to increase the local sourcing of raw materials in the sub-sector. Therefore, it is recommended that the Wari refinery/ petrochemical complex be revitalized or privatized to increase the level of local sourcing of plastics materials. Also, government should facilitate the establishment of more petrochemical plants particularly for the production of those resins and chemicals that the existing plants are not currently producing. b. Tyre sub-sector The raw material inputs such as natural rubber and carbon black are in short supply. Virtually all the carbon black requirement in the tyre industry is currently imported. It is, therefore, recommended that: The presidential Initiative on Rubber Production, Utilization, and Marketing (a 12-year Master Plan 2006 – 2017) initiated by the Federal Government which aims at cultivating 360,000 ha of rubber in the country should be vigorously pursued and sustained.

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The carbon black plant at the Warri petrochemical complex should be resuscitated and expanded to meet domestic requirement. The tyre industries should dialogue with the Management of the petrochemical plants in the country to examine the viability of producing other petroleum based additives used in tyre manufacture locally such as curatives and accelerators. A standard code of practice for the producers of rubber latex should be put in place particularly for the small players. Currently, Nigeria has no technically-graded specified rubber unlike other competitors like Malaysia and Indonesia. Government should through RMRDC and SON initiate the process to standardize locally produced rubber to meet international specifications. The companies utilizing rubber should not resort to importation while raw rubber is being exported. Government should therefore, enact a tax policy that will discourage exportation of rubber in its raw form. Product quality A good system of product quality management is well entrenched in the tyre sub-sector. However, most of the manufacturing outfits in the plastics sub-sector play down on the importance of rigorous quality assessment as well as Research and Development. Therefore, the Manufacturers’ Association of Nigeria (MAN) should use its good offices to enlighten its members in the plastics sub-sector on the priceless benefits of investing in quality assurance to meet international standards. Production capacity For the survey analysis, it was observed that there is generally low level of production. Majority of the industries operate far below their installed capacity. This could be attributed to non-availability of regular supply of electricity, lack of adequate skilled manpower and low consumer patronage (due to low product quality in some cases). In view of this, government should evolve and implement policies that will deter dumping and encourage local production and this could be by increase in tariff. The survey noted low level of production, low capacity utilization and consumer patronage among others. Government should, therefore, develop strategies that would encourage consumers to patronize local products. Despite the globalization and liberalization of markets, government must place high tariffs on imported goods, which Nigeria can produce competitively.

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Machinery and equipment Virtually all the machinery and equipment in both the plastics and tyre sub-sectors are imported. It is, therefore, recommended that the duty on the spares to these machinery/ equipment be reduced to the barest minimum or scrapped to reduce shut-downs thereby increasing capacity utilization. Government should adequately fund its agencies involved in developing machinery and equipment in the area of capacity building, etc. Research and development Participation of manufacturers in R & D should be encouraged by the Federal Government using its relevant agencies. This will ensure improvement in raw material handling and products quality. It will also address the issue of local content development. Government should increase funding on research to internationally acceptable levels and also upgrade the Polymer Institute of Nigeria to a research institute so as to stimulate research that would lead to economic development in the sub-sector. Research Institutes and Institutions of higher learning should be challenged with specific national priority projects to be completed within a specified period. Adequate reward system should also be provided for achieving the targeted results.

Infrastructural facilities The most critical infrastructural facility is electricity. Nigerian manufacturers are at a cost disadvantage when compared with their South East Asian counterparts in terms of energy. It is, therefore, recommended that efforts should be made to ensure effective distribution of power, especially to manufacturers, when the power projects being executed by the Federal Government under the National Integrated Power Programme (NIPP) is completed. Finance Manufacturers complain that industrial loans are not easily accessible. It is, therefore, recommended that the Federal Government should look into the plight of these manufacturers especially those that fall into the category of Small and Medium Enterprises (SMEs). Government should ensure that it completes all strategic projects and continue to fund new ones as the need arises.

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APPENDIX FACTS ABOUT PLASTICS

1. Plastics are one of the most resource efficient and versatile materials available to society

2. Plastics make a significant contribution to the vital goals of sustainable development: Social progress: plastics provide affordable products giving more people access to higher standards of living, healthcare and information Economic development: the plastics industry chain in Europe adds value to the society. It employs well over 1.5 million people and generates sales in excess of 159 billion euro.

3. Plastics consume only a tiny fraction – just 4% - of the world’s oil, as feedstock. 4. Plastics products in use save oil.

100 kg of plastics parts in cars reduces oil consumption by about 12 million tones each year and C02 emissions by 30 million tones a year. Plastics help reduce fuel consumption and CO2 emissions from our homes: the innovative use of plastics can reduce domestic fuel consumption to 3 litres per square meter, compared to an average of 20 litres.

5. Plastics are too valuable to waste – even at end-of-life. After serving a useful purpose, plastics can either be recycled or used as an alternative fuel. Plastic waste has calorific value at least equal to coal and with lower CO2 emissions.

6. Renewable energies rely on plastics: solar panels, wind turbines. 7. Over 1 billion people in the world lack access to safe water. Plastics can preserve and

distribute water economically, reliably and safely. 8. No other material can compete with plastics when it comes to meeting technological

demands while preserving resources. 9. Plastics are the champions of prevention: plastics packaging represents 17% all

European packaging and yet packages over 50% of the consumer goods; over ten-year period it is estimated that plastics packaging per unit has been reduced by around 28% thanks to technology; without plastics packaging, the weight of packaging would increase four-fold production costs and energy consumption would be doubled and waste volume increased by 150%.

10. Plastic make our lives safer: airbags, seatbelts, baby seats, bike helmets, medical devices are just some examples.

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CHAPTER NINE

PULP, PAPER, PAPER PRODUCT, PRINTING AND PUBLISHING SECTOR

9.1 Introduction The Pulp, Paper, Paper Product, Printing and Publishing sector (PPPPP) is one of the ten (10) industrial sectors in Nigeria as classified by the Manufacturers Association of Nigeria (MAN). The sector constitutes an important industry in the nations economy as the education and other vital public and private sectors activities depends on it. For a country that is keen to promote high literacy rate and quality education among its citizenry as exemplified by the launching of the Universal Basic Education system (UBE), paper and paper products production must be given high priority. Nations that want rapid progress in all its ramification must ensure that the products of this sector are available in sufficient quantity and at affordable prices. The sector can be sub-divided into 3 major subgroups namely;

Primary paper manufacturers,

Stationery, light/heavy packaging, and

Printing and publishing. The primary paper manufacturers are those that transform wood from its agricultural origin into pulp, which forms the immediate core raw materials for paper manufacturing. Soft woods like pine, produce long fibre pulp, while hard woods such as Gmelina, Eucalyptus, Bamboo etc produce medium and short fibre pulps. The other two sub-sectors i.e stationery, light/heavy packaging and printing and publishing, utilize paper produced by the primary paper manufacturers as raw materials for the production of various paper products. The prevailing socio-economic climate during which this review was conducted indicated the following: relative stable political atmosphere despite the sporadic upheavals experienced

in certain parts of the county; renewed confidence of the international finance system due to some vital

economic measures and policies put in place by Government;

Commitment of the government to the development of infrastructure critical to industrial development such as: urban-rural road network, telecommunication, aviation, power sector, etc;

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the re-launching of the Universal Basic Education system;

privatization of public enterprises to make some of governments moribund developmental projects i.e. fertilizer plants, paper mills, cement plants, sugar plants, etc operational.

It was therefore under these prevailing situations that the status of the sector was examined critically. 9.2 Primary Paper Mills

The three mills – Nigerian Paper Mills Ltd. (NPM), Jebba, Newsprint Manufacturing Company (NMC), Oku-Iboku and Iwopin Pulp and Paper Mills Ltd (IPPM), which were established between 1963 – 1992, to make Nigeria self-sufficient in its paper requirements remained shut down. The Government through its privatizing policy sold NPM, Jebba to MINL Ltd., a private firm in June 2006, NMC Oku-Iboku and IPPM Iwopin were sold to John Silver Nigeria Ltd and Noxeme Technology Ltd respectively in December, 2006. The continued closure of the 3 mills which constitute the bedrock of the sector affected the overall activity of the sector. Producers of gmelina logs, local pine, bamboos etc that relied on the mills for patronage have since abandoned cultivation of the trees. Waste paper converters operated at very high capacity utilization compared to the 2003 survey report. Capacity utilization on the light/heavy packaging sub-sector increased over the 2003 figure because of high importation of their basic raw material (industrial paper). As local sourcing of basic raw materials in the sector have declined since 1999 due to closure of the 3 mills and the slow pace of local production of chemicals and other miscellaneous materials, the shortfall has to be met by huge importation of the needed raw materials, with scarce foreign exchange. 9.3 Raw Materials Used in the Sector The industries in the sector requires about one hundred and fifteen (115) major raw materials for pulp and paper production, paper conversion, printing and publishing activities. Some of these raw materials are as listed in Table 9.1.

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Table 9.1: Raw Materials Requirement of Pulp, Paper, Paper Products Printing & Publishing Sector.

Raw materials 1. Wood Trees

Gmelina arborea Eucalyptus Pines Bamboo 2. Fibre Pulp

Short fibre pulp Long fibre pulp Waste paper 3. Paper Grades Kraft paper Fluting paper Newsprint Bond paper Duplicators

Tissue paper Wet strength paper Wax hammated Gummed paper Sack kraft Kraft liner Board Cards (various type) M.G. pressing paper Duplicating paper Manillar 100sqm Manilla 220sqm Cover papers Boards Bank papers Coated duplex Board Poster papers Self adhesive paper Core- Board Wrapper Sulphite paper Art paper

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4. Printing & Publishing Materials

Bond paper (M.F) Newspaper (M.F) Binding cloth Art paper Bank paper Type setting paper Cover board Cutting stick Fountain solution Manilla Card Vanguard cards Plates Ink Glue/ gum Plate developers Film developers Litho & photo chemicals Ledger paper Lead Clip Board Aluminium foils Films Cleaners Cellotape Film fixer Glazed paper Paraffin wax Onion skin paper Bentone Borax Carbonized paper Stitching wire Dye cutting blade Numbering machine Cellophane Stapler Surtial knife Vanishes Industrial alcohol Polyester thread Engraving sheet

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Evostic Film reducer Activator Composite paper White Envelop paper Typing sheet Facial tissue Self adhesive label paper Straw board Orbit ivory board Hammer embossed board Blanket restorer Starch Filter coats Crostape binding Plastic (PVC) Straping rope Twine Plywood Gravure cylinder Saving threads Seal board Siolin/ embossed card Index board Briston board Compugraphic materials Surgical knife Cow gum Marathon solution Underlay Creasing matrix Goat skin patchment Graphic materials Plate preserver Embossing powder Gold dust Lubricants Web vibrating cover Lithen embossed Cutting stiets

5. Chemicals Manufacturers Sub-Sector

Bitumen Process Oil

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Dry pigments Pigment paste Alkyd resins Anti- skinning agent Wax compound Aerosol Transfer fill Cobalt drier Magnesium drier Sodium metabisulphate Ethylene glycol Hi- grade Oil

6. Chemical Materials in Pulp Mills

Sodium hydroxide Sodium sulphide Sodium sulphite Soda ash Salt cake Limestone Hydrogen peroxide Magnesium Sulphate Sodium silicate Diethylene thiamine Sodium chlorate Penta acetic acid Chlorine Anti- slime Agent Anti-slime

7. Boiler/ Mill Water Chemicals

Alum Sodium aluminate Polyelectrolyte Sodium hydroxide Sulphuric acid Trisodium phosphate Hydrazine Cyclohexylamine Morpholine LPFO LPG

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8. Paper Production Chemicals

Rosin Starch Kaolin Sodium Silicate De-foamer Dye-stuff Alum

9.4 Industrial Specifications of Raw Materials in the Sector The industrial specification of selected raw materials in the sector are as shown in Table 9.2. Table 9.2: Industrial Specifications of Raw Materials in the Sector

S/N ITEMS SPECIFICATION

1. Newsprint (manufacture of paper and toilet rolls. Grammage (gsm) : 48.8 Real width (mm) : various

2. PapersCards (printing & publishing) Grammage (gsm) : 200

3. Paper Seal seals These seals are composed of cellulose fibre

4. Embossed Card (printing & publishing) Grammage (gsm) : 180

5. Glossy Art Paper (printing & publishing) Grammage (gsm) : 210 – 220

6. Glossy Card (printing & publishing) Grammage (gsm) : 250

7. 1. Wood (Type) Cellulose % Lignin % Pentosan and Hexosans % Other component %

Bagasse Pine Gmelina & Others 46 42 45 23 29 23 26 29 22 5 7 10

S/N ITEMS SPECIFICATION

2. Gmelina Log standard, M Moisture content On wet back % Log Pulping 3. Pines Log standard, M Moisture content On wet back % Log

2 40 – 45 Free from fungus and rots felling of tree 30 days to chipping. 72 hours after chipping. 2 50 – 55 Free from fungus and rots felling of tree 60 days to chipping.

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4. Long Fibre Pulp a. Bleaching Moisture content, % Drainability, CSF Tensile Index MNg-1 Freeness Length, MM b. Kraft Pulp Moisture content, % Drainability, CSF Freeness Length, MM 5. Medium Fibre Pulp Length, MM 6. Short Fibre Pulp Length, MM

Semi-bleached and bleached (white) 10 – 12 600 – 7005 19 Canadian standard 3 minimum Light brown (Unbleached) 10 – 12 Depend on the degree of beating or refining OSR standard 3 minimum 1.5 minimum 0.7 – 1.4

8. Inks (flexographic and letter press) for light/heavy packaging

Base : 0.1 Component : Hydrocarbon Stability : in 5% NaoH solution.

9. Kraft Liner Board: used as corrugating materials to manufacture

Paper : uncoated Grammage (gsm) : 125 – 400

10. Ivory Board: (printing & publishing) Grammage (gsm) : 300

11. Kaolin for paper industry Type Coating Filler Clay SO2, % 47.8 47.7 AI2O3, % 37.0 36.0 Fe2O3, % 0.58 0.82 TiO2, % 0.03 0.05 Cao, % 0.40 0.60

Mg O, % 0.16 0.25 K2O, % 1.10 2.10 N2O, % 0.10 0.10 L. O. I 13.1 11.9 Relative density 2.6 2.6 Oil absorption % 46± 5 46± 5

12. Kraft Paper (production of stationeries & toilet rolls

Grammage (gsm) : 80/100 Real width (mm) : various

13. Labels (printing paper) for lithographic raw materials in the manufacture of light/heavy packaging materials.

Grammage (gsm) : 72 – 90 Size : Various

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Table 9.2

LIHEN EMBOSSED PAPER FOR PRINTING AND PUBLISHING

GRAMMAGE (GSM) : 200 – 250

Long Fibre Pulp for paper and newsprint. Bleaching : semi bleached and bleached Moisture content % : 10 – 12 Durability, CSF : 600 – 7005 Tensile Index MNg-1 : 19 Freeness : Canadian Standard

Machine Glazed Kraft Paper for production of Light/Heavy packaging materials.

Grammage (gsm) : 40 + PE 1590 Heat stability : Low temperature Web width (mm) : 628

Onion Skin Paper for Printing and Publishing Grammage (gsm): 210 – 220

Photocopy Paper for manufacture of Stationeries & Toilet rolls

Grammage (gsm) : 80 Real width (mm): various

Printing Blanket for manufacture of Light/Heavy packaging products

Colour: cure Type: polysynthetic rubber Size (mm): 1300 x 1200 x 1.9

Wet strength Paper for Light/Heavy packaging manufacture

Grammage (gsm): 65, 70, 72 Web width: various

White Board Paper for Stationeries, Toilet rolls manufacture

Grammage (gsm): 60 Web width: various

Straw for manufacture of Printing Paper Moisture content (%) : 10 – 12 Length (mm) : 1.5

Bamboo for manufacture of Printing Paper Moisture content (%) : 10 – 12 Length (mm) : 2.7

Cotton for manufacture of Paper Cellulose (%) : 90 – 100 Moisture content (%): 20 Length (mm) : 25 - 32

Jute for manufacture of Paper Moisture content (%) : 10 – 12 Length (mm) : 2

Starch for improving the quality of writing and printing Paper

Purity (%) : > 90 starch Moisture content (%): 11 max

Bagasse for manufacture writing and printing paper Cellulose (%) : 46

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Lignin (%) : 23 Pentasans & Hexosans (%) : 26 Moisture content (%) : 10 – 12 Length (mm) : 1 – 7

PINE FOR MANUFACTURE OF PULP CELLULOSE (%) : 42 LIGNIN (%) : 29 PENTASANS & HEXOSANS (%) : 29 OTHER COMPONENT (%) : 7

Light/Heavy Packaging Sub-sector

Kraft Liner Board: used as corrugating materials to manufacture

Paper : uncoated Grammage (gsm) : 125 – 400

Machine Glazed Kraft Paper for production of Light/Heavy packaging materials.

Grammage (gsm) : 40 ± PE 1590 Heat stability : Low temperature Web width (mm) : 628

Wet strength Paper for Light/Heavy packaging manufacture

Grammage (gsm): 65, 70, 72 Web width: various

Orange minila Paper for manufacture of Stationeries and Toilet rolls

Grammage (gsm) : 200 Real width (mm): various

Art Paper for manufacture of Stationeries Grammage (gsm) : 60 Real width (mm): various

9.5 Capacity Utilization Profile

An overview of the installed capacity utilization, annual capacity utilization and the average capacity rates relative to the 2003 survey reports values for the various sub-sectors and sub-divisions are as presented in Table 9.3. The capacity utilization in the primary paper (fibre source) increased slightly from 4.92% in 2003, to 6.33% in 2005 and 6.84% in 2006, resulting in average capacity utilization in the sub-sector of 6.38%. The very low percent capacity utilization could be attributed to the continued shut-down of the three primary paper mills and the activities in the sub-sector only sustained by the waste papers being utilized. Capacity for chemical raw materials in the sub-sector is also still at zero level as in the case of 2003 survey.

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Table 9.3: Summary of Average Capacity Utilization in the Pulp, Paper, Paper Products, Printing and Publishing Sector.

S/N SUB-SECTOR INSTALLED CAPACITY

CAPACITY UTILIZATION (%)

AVERAGE CAPACITY

UTILIZATION (%) 2003 2004 2005 2006

1. Primary Paper (Fibre Sources) 1,169,145.00 4.92 5.98 6.33 6.84 6.38

2. Primary Paper (Chemicals) 105,262,517,00 0.00 0.00 0.00 0.00 0.00

3. Stationery, Light/Heavy Packaging (Paper) 3,467,400.00 68.44 75.87 84.81 88.07 82.92

4. Stationery, Light/Heavy Packaging (Boards) 463,410.00 79.62 85.06 85.57 87.39 86.01

5. Stationery, Light/Heavy Packaging (Chemicals) 571,093.00 76.54 80.28 85.71 87.61 84.53

6. Stationery, Light/Heavy Packaging (Miscellaneous) 10,203,418.00 63.64 59.67 60.61 62.64 60.97

7. Printing and Publishing (Paper) 42,903.00 17.64 19.24 20.68 22.22 20.71

8. Printing and Publishing (Boards) 499,271.10 58.81 61.18 63.16 65.88 63.41

9. Printing and Publishing (Chemical) 20,808.00 46.18 46.74 47.49 47.96 47.40

10. Printing and Publishing (Miscellaneous) 25,573.00 88.98 89.18 89.40 89.83 89.47

TOTAL Average Annual Capacity Utilization (%) 54.18

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The capacity utilization in the stationery, light/heavy packaging sub-sector for paper, board, chemical and miscellaneous materials also follows, similar trend of slight increase as described for the preceding sub-sector. It should however be noted that the highest annual capacity utilization rate of 89.47% was recorded for the printing and publishing (miscellaneous) sub-sector. The overall average capacity utilization of the entire sector was put at 54.18%. It is quite instructive and revealing to compare the capacity utilization of the sector as captured by the RMRDC survey to those of other sources such as CBN and MAN. Table 9.4 shows the capacity utilization figures captured from 2003 – 2006 by RMRDC, MAN and CBN. Capacity utilization in 2004 of 44.24% recorded by RMRDC, is very close to that of CBN average of 41.11%. The 2006 figures of 65.75, 51.46 and 58.88% recorded by MAN, RMRDC and CBN however shows slightly larger variation than the 2004 figures. The over 50% average recorded by the 3 organisations (MAN, RMRDC and CBN) all point out the high rate of activities in the sub-sector. The activities in the sector are mainly geared towards satisfying the need of the Education sector (UBE) and the probable increase in publicity generated by the increased political activities. Production of toilet/facial tissue paper also increased tremendously around this period. Apart from the waste paper which are mainly sourced locally for production of tissue papers, all demand for other raw materials (paper, chemicals, etc) are largely met by massive importation. Table 9.4: Capacity Utilization in the Pulp, Paper, Paper Products Printing and Publishing Sector 2003 –

2006

SOURCE 2003 2004 2005 2006

+ Manufacturers Association of Nigeria

- - 57.48 65.75

+ Raw Materials Research and Development Council

50.48 44.24 44.54 51.46

* Central Bank of Nigeria:

Paper manufacture & product - 40.02 0.00 70.00

Printing & publishing - 48.20 53.00 47.75

Average for CBN - 41.11 - 58.88

Sources: + RMRDC PPPPP Report (2007) * CBN Statistical Bulletin Golden Jubilee Edition (2008)

9.6 Shortfall for Major Raw Materials in the Sector

Table 9.5 depicts the full capacity requirement of major raw materials in the sector, the current level of production locally and the corresponding supply gap. The almost total or overwhelming dependence of the sector on importation is clearly illustrated in the table. Only 14 out of the 70 listed materials i.e. (20%) are locally produced. Even out of those produced locally, a quarter of them had a supply gap of between 50 – 99%, which implies that most of the companies producing them are operating below 50% capacity utilization. Only

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very few materials like kaolin and ledger papers are being produced in excess of national demand. The overall picture painted therefore depict an over-dependence of the sector to massive importation, which requires a prompt action of Government to revive the 3 mills as a matter of national urgency. Reactivation of the mills will also ginger activities in local chemical manufacturing plants, for chemical production, setting up plantation for short, medium and long fibre crops. R&D activities will also be on the increase for increased use of local alternative cotton- linters, cucumber, sisal, hibiscus and raphia as source of raw materials in the producing paper manufacturing sub-sectors. Table 9.5: Most Important Raw Materials of the Pulp, Paper, Paper Products, Printing and Publishing

Sector (Demand-Supply Gap)

S/N RAW MATERIALS NATIONAL PRODUCTION

2005

NATIONAL DEMAND

2005

SUPPLY GAP 2005

SUPPLY GAP (%)

1. Long fibre Pulp (BDMT) 0 85,668.10 85668.10 100.00

2. Short fibre Pulp (BDMT) 0 280,000.00 280-000 100.00

3. Waste Paper 74,000 100,000.00 26,000 26.00

4. Kraft 0 80,000.00 80,000 100.00

5. Fluting tonnes 0 20,000.00 20,000 100.00

6. Manilla (220gm) 0 110.00 150,000 100.00

7. Newsprint 0 250,000.00 250,000 100.00

8. Cover Papers tonnes 20,000 20,000 20,000 100.00

9. Bond Papers 0 250,000.00 250,000 100.00

10. Boars Uncoated 0 25,000.00 25,000 100.00

11. Duplicators 0 2,000.00 2,000 100.00

12. Bank Papers 0 24,000.00 24,000 100.00

13. Tissue Paper 45,000 65,000.00 20,000 31.00

14. Coated Duplex Board 0 25,000.00 25,000 100.00

15. Wet Strength Paper 0 5,000.00 5,000 100.00

16. Poster Paper 0 1,000.00 1,000 100.00

17. Wax Hammaled 0 500.00 500 100.00

18. Self Adhesive Paper 0 3,000.00 3,000 100.00

19. Gummed Paper 0 100.00 100 100.00

20. Core-board 0 1,000.00 1,000 100.00

21. Sack Kraft 0 15,000.00 15,000 100.00

22. Base Carbonizing Tissue Paper 0 1,500.00 1,500 100.00

23. Stencil Paper 8,500.00 20,000.00 115.00 57.50

24. Carbonized Paper 300,000 11,500,000 11,200,000 97.4

25. Binding Cloth (yds) 543.00 45,000.00 44,457 98.79

26. Art Paper tonnes 25,000.00 30,000.00 5,000 16.67

27. Ledger Paper 0 2,000.00 2,000 100.00

28. Cutting Stick (pcs) 345.00 14,000.00 13,655 97.54

29. Lead 0 3,000.00 3,000 100.00

30. Fountain Solution (litre) 1,000.00 6,100.00 5,100 83.61

31. Manlla Card tonnes 0 2,000.00 2,000 100.00

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32. Chip Board tonnes 0 800.00 800 100.00

33. Aluminium Foils (sheet) 20,000 5,000.00 3,000 60.00

34. Plates (sheet) 0 800,000.00 800,000 100.00

35. Film (sheet) 0 150,000.00 150,000 100.00

36. Ink (litre) 0 10,000.00 10,000 100.00

37. Cleaning Chemicals tonnes 1,000.00 2,000.00 1,000 50.00

38. Glue/Gum (litre) 5,805.00 96,750.00 90,945 94.00

39. Adhesive 500.00 1,000.00 500 50.00

40. Cellotape (roll) 15,082.00 35,470.00 20,388 57.48

41. Plate Developers 0 50,000.00 50,000 100.00

42. Film Fixer (litre) 0 30,000.00 30,000 100.00

43. Film Developer (litre) 0 50,000.00 50,000 100.00

44. Glazed Paper (ton) 0 30,000.00 30,000 100.00

45. Sodium Hydroxide tonnes 0 144,260.00 144,260.00 100.00

46. Sodium Sulphate tonnes 0 2,600 2,600 100.00

47. Sodium Sulphate tonnes 0 6,000 180,000 100.00

48. Soda Ash tonnes 0 -55.00 -55 100.00

49. Salt Cake tonnes 0 4,200.00 4,200 100.00

50. Limestone 0 35,500.00 35,500 100.00

51. Hydrogen Peroxide tonnes 0 4,000.00 4,000 100.00

52. Magnesium sulphate tonnes 0 400.00 400 100.00

53. Sodium Silicate 0 741 741 100.00

54. Diethylene Triamine Pentacetic Acid NA NA NA NA

55. Sodium Chlorate tonnes 0 5,040.00 5,040 100.00

56. Hyrochloric Acid tonnes 0 5,250.00 5,250 100.00

57. Chlorine tonnes 0 7,000,00 7,000 100.00

58. Alum tonnes 0 6,450.00 6,450 100.00

59. Sodium Aluminate tonnes 0 60.00 60 100.00

60. Polyelectrolyte tonnes 0 5.00 5 100.00

61. Sulphuric Acid tonnes 0 200.00 200 100.00

62. Trisodium Phosphate 0 30.00 30 100.00

63. Hydrazine tonnes 0 9.00 9 100.00

64. Cyclohexydamine tonnes 0 9.00 9 100.00

65. Resin tonnes 0 660.00 660 100.00

66. Starch tonnes 9 364 355 97.53

67. Kaolin tonnes 1,200 400

68. Sodium Silicate tonnes 0 421 421 100.00

69. Defoamer tonnes 0 9.00 9 100.00

70. Activated Carbon Black tonnes 0 1,000.00 1,000 100.00

9.7 Potentials for Local Substitute In order to take full advantage of numerous and varied tree species available in Nigerian forest, it is desirable to introduce and promote new processes and technologies targeted specifically at production of short fibre pulp from alternative hardwood other than Gmelina and Eucalyptus. The development of Bamboo, raphia and kenaf as possible sources of medium/long fibre crop

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instead of P occarpa and P carribea species that have long gestation period should also be explored. Other sources of chemicals, such as adhesives, starch, printing inks, gum/glue, sodium compounds, alkyl resins, etc should be explored apart from traditional sources or through importation. In this regard, the following specific areas merit attention of stakeholders.

Development of pulping technologies for alternative plant species such as sisal, hibiscus, cotton linter, raphia, cucumber, etc.

Production of sodium hydroxide through electrolysis of brine to be sourced from extensive salt/brine deposits in the country.

Extraction and refining of Gum Arabic for adhesive products i.e. glue, cow gum, etc.

Production of starch from cassava

Local production of starch derivatives such as dextrine

Development of chemical plant for manufacture of sodium sulphite or other alternatives for delignification in the kraft/sulphite pulping process.

9.8 Investment Opportunities For the country to fully explore its potential and to ensure proper development, growth and sustainability of its paper and allied industries, the following are the urgent steps, which require huge infusion of funds. They therefore represents potential areas of investment opportunities.

Resuscitation of the 3 paper mills, through the Public-Private- Partnership initiative (PPP);

Development of long, medium and short fibre sources through establishment of plantations by private firms;

Reactivation of the coal industry for both power and chemical raw materials through PPP arrangement;

Reactivation and expansion of the petroleum refineries, petrochemical and Liquidified Natural Gas (LNG) through PPP arrangement;

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Development of solid mineral industries for relevant chemicals;

Development of different energy sources including renewable ones. Specific investment opportunities in the sector are as listed in Table 9.6. Table 9.6: Investment Opportunities in Paper, Paper Products, Printing and Publishing Sector

S/N RAW MATERIALS REMARKS

1. Short-fibre Pulp There is need to establish more plantations of short fibre plants like Gmelina, arborea, Eucalyptus, etc.

2. Long-fibre Pulp There is need to plant more softwood trees like pines. Furthermore R&D efforts should be directed at providing pulping technologies that will encourage planting and pulping of annuals like kenaf, cotton, sisal and wild cucumber as small/medium scale enterprises.

3. Sacks, wrappers, kraft paper, kraft liner board, fluting paper, coated duplex board, cover papers, wet strength and posters, bank papers, manilla, bond papers.

There is need to assess the production and operating capacities of the existing mills for production of the different paper grades. This will form a basis for new projects to produce the paper grades still wholly imported and expansion of existing mills. Small scale pulping machines should be procured and produced locally through copy engineering in order to encourage pulp production. Recycling of used paper in small- medium scale mills based on waste paper should also be invested in.

4. Caustic soda, sodium sulphide, sodium sulphite, chlorine, hydrogen peroxide hydrazine.

There is a need to evaluate salt deposits in Nigeria with a view to determining the areas where investments in sodium chloride, caustic soda, sodium sulphide, chlorine and sodium sulphite production could be viable.

5. Cassava starch The existing mills should consider the integration of cassava planting and cassava starch processing to supply their starch requirements into their operations.

6. Gum Arabic It is necessary to establish more plantations of Acacia, Senegal for Gum Arabic production. The processing of Gum Arabic should also be invested in.

7. Alkyd resin Alkyd resin has been successfully produced locally. There is however need to increase the quality and quantity produced.

8. Printing Ink Local production needs to be encouraged through the establishment of more small/medium scale production plants.

9. Gum/glue Existing manufacturers are limited in their range of products.

10. Plate cleaner Local production needs to be encouraged through the establishment of more small-medium scale production

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9.9

Research and Development Activities in the Sector Some Research and Development (R&D) proje

cts geared towards development of local raw materials to replace imported ones have been reported in some tertiary institutions and private industries in Nigeria. The various R&D projects either completed or on going in the sector, names of institutions/industries conducting the R&D are as presented in Table 9.7 Table 9.7: Research and Development Activities in Nigerian Institutions/ Industries

S/N INSTITUTION/INDUSTRY RESEARCH AND DEVELOPMENT COMPLETED

RESEARCH & DEVELOPMENT

ON-GOING

1. Institute of Management and Technology, Department of Printing Technology, Campus 3, Independence Layout, Enugu

Preparation of a Fountain solution of small offset.

-

2. Nigerian Paper Mills Ltd., Jebba. 1. Research into local sourcing of long fibre pulp (Pine, Raphia and Kenaf).

-

plants.

11. Duplicating Ink No local manufacturers as at present.

12. Kaolin (china clay) Local production needs to be encouraged through the establishment of more small-medium production plants.

13. Alum Local manufacturers to be encouraged.

14. Limestone Local production needs to be encouraged through the establishment of more small-medium scale production plants.

15. Sulphuric Acid Local manufacturing to be encouraged.

16. Sodium silicate Local production needs to be encouraged through the establishment of more small-medium scale production plants.

17. Art paper Subject to reactivation of Newsprint plant.

18. Art paper Subject to completion of Iwopin print.

19. Paper Board Subject to the reactivation of paper mill.

20. Bond paper The iwopin paper mill bond paper is of poor quality which is not acceptable by end users.

21. Typewriter Ribbon plastic spools Local plastic companies are yet to perfect the necessary mould.

22. Activated Carbon black (DOPE) The carbon black produced at Ekpan refinery- Warri is exclusively for motor tyre manufacturers and is unsuitable for chemical stationery manufacturers.

23. Carnuba Wax Duplicating ink The paraffin wax produced by NNPC is meant to serve candle manufacturing and cosmetic industries and not for chemical stationery.

24. Cellophone Shrink wrappers are produced locally

25. Narrow woven Fabric(13mm wide) The textile companies because of its narrow width of 13mm, cannot produce such tiny materials and the yarn is not available.

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2. Investigation into possibility

of substituting imported lime with local limestone and starch.

3. Department of Chemistry, University of Uyo, Akwa Ibom State

1. Investigation into the suitability of locally available raw materials, particularly fibre for paper making.

2. Investigation into the

suitability of locally available non-fibrous raw materials for paper making.

a. Fabrication of hand-made paper milling machine

b. Studies into the impact

of effluents from pulp and paper mills on the environment

c. Investigation into the

mechanism of Alkylketone Diner (Neutral and alkaline).

4.

Department of Chemical Engineering, Ahmadu Bello University, Zaria

1. Study of scuffing ad surface characteristics of paper boards

2. Alcohol pulping of tropical

hardwoods 3. Chipboard from vegetable

waste materials.

5. Department of Agricultural Engineering, Ahmadu Bello University, Zaria

1. Utilisation of Samcots 6, 8, 9, & 10 varieties of cotton plant stalks for paper making.

2. Comparative study of particle board production using various agricultural wastes.

6. Department of Agricultural Engineering, Federal University of Technology, Yola, Adamawa State.

1. Production of hand-made paper from cotton linters.

2. Use of gum arabic, starch and

china clay additives with cotton linters for paper making.

1. Use of kenaf fibres as a base friction material for production of automotive brake pads.

7. Federal Institute of Industrial Research, Oshodi, Lagos.

1. Mixed pulping of Hibiscus cannabinus and Urena lobata to confirm superiority of the blend of both pulps in terms of strength of pine.

2. Highlight on ways, strategies

and means of developing local sources of long fibre pulps and chemical for pulping and paper making.

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3. Pilot scale production of long

fibre from Kenaf Bast. 4. Fibre.

8. University of Uyo, Akwa Ibom State.

1. Production of pulp from plantain/banana stem waste, screw pine’s root, stem and leaves.

1. Production of industrial

chemicals from local animals and plants e.g. rosin for paper sizing

2. Development of loom for

hand made paper.

9. University of Lagos, Chemistry Department

1. Pulping exercise to determine the suitability of Raphia palm, and Kenaf species for paper.

2. Possibility of production of

Ethanol from corn, cassava, molasses, sawdust etc.

3. Lignin determination in Gmelina Arborea.

4. Evaluation of dispensability of some naturally occurring paper grade Kaolin Clays.

9.10. Machinery/Equipment Engaged for Processing Raw Materials in the Sector The machinery/equipment currently employed to process raw materials in the sector are largely foreign in nature. With the current high exchange rate, which is unfavourable to Nigeria, the cost of procurement of these machinery/equipment and their spare-parts is quite high. Indigenous capacity building, which is essential for sustainable development and self-reliance must be encouraged through strengthening of the Science and Engineering infrastructural base of the country. Mention should also be made of the idle machinery/equipment tied up in the 3 paper mills since 1996. It is quite likely that the reactivation of these plants, if they are not vandalized will require huge infusion of funds. Specific machinery/equipment required in sector are as listed in Table 9.8.

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Table 9.8: List of Machinery and Equipment for the Sector (Paper

Industry)

1. AURE UIS 125 29. MANN MASTER

2. Extruder Machine 30. S. H. Gathering/Collating

3. Automatic Rewinding Machine with Cutter 31. 4-Colour Machine

4. Servietter Machine 32. Adast Machine

5. Core Machine 33. Sulby Binder

6. Goss 34. Martin Sewer

7. Pacer 36 Rotary Machine 35. De-Barking Drum

8. Bielomatik Machine 36. Chipper

9. Sozd Machine 37. Screen

10. Monocasters 38. Digester

11. Supercasters 39. Washer

12. Intertype Machine 40. Recovery Boiler

13. Printing Frame 41. Power Boiler

14. Log Producing Machine 42. Cauticizer

15. Log Rewinding Machine 43. Clarifier

16. Photo-enlargers 44. Turbine

17. Rotary Machine 45. E. S. P. (Electro-static precipitator)

18. Sewing Machine 46. Corrugating Machines

19. Exercise Book Machine 47. Paper Machines

20. Offset Machine 48. Pulpscreens

21. Gost Machine 49. Abdik Machine

22. Printing Camera 50. Polar

23. Heavy Duty Vanguard Machine 51. Gestentner

24. Eye Letting 52. Heldberg

25. Die Form 53. Sheeting Machine

26. Goning Machine 54. Shaw Rulling Machine

27. Milling Machine 55. Rollem Auto Machine

28. Roland Rekord 56. Demdiff Folding Machine

57. Adana Embossing Machine 77. Developing Trays

58. Stitching Machine 78. Stop Press

59. Lord 64 79. Colour Press

60. Binding Machine 80. Solua 154

61. Folding Machine 81. Heildelberg Platen

62. Glueing Machine 82. Ryobi Printing Machine

63. Plate Making Machine 83. STAHL FOLDING

64. Blocking Machine 84. Monotype Keyboard Machine

65. Romayor Off-set 85. GUZZ WEB

66. Multilith Offset 86. Horizontal Litho Camera

67. Herol and Guilotine 87. Spiral binding Machine

68. Computers 88. Die-cutting Machine

69. MULTIGRAPHIC 89. Trimming

70. Toilet Roll Machine 90. Schhtal

71. Punching Machine 91. Gloting Polar 90

72. Web Machine 92. Timson Machine

73. Layout Table 93. Parker Manarch

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74. Johnes Perfecter 94. Langston Corrugator

75. Auto Vertical Camera 95. Lettering Brush

76. Step Wedge 96. Re-promater 2000

9.11 Recommendations 1. The present administration in the country, should as a matter of urgency conclude the

privatization arrangement for the mills to become operational soonest; since they have the potential of stimulating production activities in the sector.

2. Policy of self-sufficiency should be pursued, to ensure intensive development of local

raw materials as industrial input in the sector. 3. The establishment of plantations of Gmelina arborea and Encalyptus spp; by both the

public and private sector be encouraged once the 3 mills becomes operational. Plantation of long fibre plants, i.e. pines – pinus oocarpa and pinus carribea be vigorously pursued. Plantations of identified viable alternative to pines e.g. kenaf etc should also be established.

4. Production of basic chemicals like caustic soda, sodium sulphate, hydrogen peroxide,

which constitute about 20 – 30% of the total raw materials, which are imported, must be catalysed locally by the Government. Bank of Industry (BOI) and the commercial banks should finance projects aimed at local production of chemicals.

5. Funding of market driven R&D activities and incentives to companies engaged in R&D

should be encouraged. 6. Development of local technology to process the local woods for pulps. 7. Revitalization and improvement of infrastructural facilities to facilitate sustainable

supplies must be embarked upon. 8. Government should continuously nurture manpower through a well articulated

integrated manpower development policy geared towards self-reliance. 9. Government to encourage consumption of locally produced materials through

legislation and policy instruments, necessary facilities must also be made available for production of high quality products to meet high quality international specifications.

10. Government to put in place the institutional framework to promote linkages between

equipment spare- part fabricators, raw materials producers and suppliers, financial institutions, R&D institutions as well as the spare parts suppliers and the processing industries in the sector.

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CHAPTER TEN

TEXTILE, WEARING APPAREL, LEATHER AND LEATHER PRODUCTS SECTOR

10.1 Introduction The Nigerian Textile, Wearing Apparel and Leather Industry played a significant role in the Nigeria Industrial Sector, contributing significantly to the nation’s Gross Domestic Product (GDP). It is a capital-intensive industry considering its turnkey machinery and labour intensity. The industry was of critical importance in the Federal Government’s import substitution industrialization strategy of the late sixties to seventies. The industry is highly raw material driven, as it has both forward and backward linkages to agriculture and petrochemical industries. It is equally strategic in terms of the overall industrial efforts of Nigeria, considering its absorptive capacity for engineering goods and services. The industry have prospects to provide employment opportunities for large number of unemployed Nigerians and also, alleviate poverty as it utilizes mostly unskilled cheap labour which should be exploited in the current situation of massive unemployment, especially in cotton, textile, garment and footwear manufacturing. The sector was formerly the largest employer of labour in the manufacturing sector as it accounted for 25% of the manufacturing added value. The textile industry in Nigeria is also the largest in Africa. This share of value-added and employment generation potential of the sector decreased significantly from creating over 137,000 jobs in 1997 to less than 50,000 in 2006, a decrease of over 60%. This is due to an aggregation of factors, ranging from obsolete machinery, high interest rate, decaying infrastructure and lack of improvement in the local sourcing of raw materials and smuggling and dumping of sub-standard textiles. In the past twenty years the sector (ie Textile, Wearing Apparel and Leather) was predominantly dominated by foreign producers such as China, Taiwan and India, with their factories located all over Nigeria. Surprisingly in the last five years most of these foreign factories have closed down with the aim of re-establishing in their home countries with the claim that it is cheaper for them to do so. The geographic dispersal of the industry within the country reflects the source of raw materials and high level of wholesale and retail trade. Textile mills are highly concentrated in Lagos, Kaduna and Kano areas while others are dispersed in the South-South/South-East axis.

Equally, the leather industry (Tanneries) are mainly located in Kano, while the leather products industry especially footwear and leather goods are located in Aba, Onitsha, Port Harcourt, and

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Lagos areas. Majority of the micro/small scale footwear and leather goods manufacturers are found within the Onitsha, Aba and Port Harcourt triangle.

Equity ownership and management structure currently still indicates textile mills (100 per cent foreign owned), tanneries (100 – 80 per cent foreign owned) and micro/small scale footwear and leather goods manufactures (80 –100 per cent Nigerians). In terms of market prospects, the sector has the capacity to meet domestic market requirements and also exports in order to generate foreign exchange. This implies that the growth and development of the Nigerian economy can be built around the textile, garment and leather industries. The promotion of the non-oil sector of the economy will also depend on the growth of this sector. Textile

The textile industry is composed of several group of activities such as fibre production (cotton and synthetic fibers), spinning, weaving, dyeing and finishing, printing, made-up textile goods, knitting, carpet furnishing, sacks/bags, among others.

The major production includes ginning, spinning, weaving, knitting, dyeing, printing and

finishing.

In terms of dispersal of industry, it was found that about 60 per cent of the spinning mills and 73 per cent of the weaving mills are concentrated in Lagos and its environs. Kaduna, Katsina and Kano account for 24% of the spinning mills and 14% of the weaving mills. Edo, Delta and the South eastern states account for 16% of the spinning mills and 13% of the weaving mills.

The existing installed spinning capacity is 500,000 tonnes per annum from 26,000 rotors

and 810,000 spindles of which 60% is cotton and 40% synthetics.

Over 30 per cent of the total spindle capacity is reported to be idle due to obsolescence, non-availability of spare parts, high maintenance cost, and of recent due to declining sales.

Nigeria currently has a share of 24% installed short staple ring spinning capacity and

31% open-end spinning capacity of the sub-Saharan Africa installed capacity. For shuttleless and shuttle looms, Nigerian’s share is 35% and 29%, respectively.

In the year 2002, Nigeria produced about 500 million linear metres of all types of fabrics

representing 72% of the West African production.

The existing industries produce primarily African prints of real wax and imitiation wax prints with little product differentiation, which affected their competitiveness.

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Furthermore, the African prints do not show significant variation among companies in terms of colour and designs.

The current installed textile manufacturing capacity represents US$ 3 billion

investments on a replacement basis (2006)

There is high domestic and export markets especially within the ECOWAS and ECAC (East and Central African Countries). Direct exports to EU are mainly in the form of yarn.

The determinants of the competitiveness of the textile industry (ie cost-drivers) are cost

of cotton, power, labour, dyestuff and chemicals, and capital. Wearing Apparel

Garment and wearing apparel is of great importance in the textile value chain. Currently, there is no large scale garment industry in Nigeria and as such, there is virtually no significant demand for fabrics from Nigerian textiles industry other than African prints.

Nigerian participation in the high value added products in the textile chain is limited as

high value added products such as made-ups and garments are missing in Nigeria’s exports.

The garment industry from the present context of enterprise development in Nigeria is

dominated by micro, cottage level enterprises often described as fashion designers. This should not be mistaken to be a garment industry as they are limited in both scope and capacity.

The industrial garment producers have virtually disappeared from the manufacturing

scene in Nigeria. Among the numerous factors responsible for this, is the negative effect of dumping of cheaper garments and second-hand clothing from outside Nigeria.

It was also observed that the ownership pattern following the introduction of Nigerian

Indigenization decree and the oil boom, which encouraged Nigerians’ penchant for, imported garments contributed significantly to the decline of the garment industry.

The sub-sector was found to be the most unorganized and lacks specialized distribution

channel for its products. Retail trade enjoy about 95% of the distribution mechanism. Leather and Leather Products

The leather tanning industry integrates backwards to the livestock and meat industry through the utilization of hides and skins (by-products of the meat industry) as its basic raw materials. It equally integrates forward to the footwear and leather products industries by supplying the finished leather required as raw materials.

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The leather industry was found to have great potential for sub-sectoral growth

particularly in the area of tannery, namely the production of finished leather, utilizing and converting sheep and goat skins into high quality leather valued by the international market.

Nigeria is endowed with the third largest livestock population in Africa with about

15.4 million cattle, 44.2 million goats and kids, 28.0 million sheep and lamb, and 92,500 camels.

The current survey revealed a substantial difference between the livestock

production and the numbers of inspected animals slaughtered at registered facilities. Traders of skins reported that about 70% of sheep and goat skins collection are sourced from unregistered slaughter houses.

About 30 – 40 per cent of the total slaughter comes from unrecorded animals

imported on hooves across the borders, mostly from Chad, Niger, Cameroon and Central African Republic.

The major hides and skins producing states in Nigeria are Borno, Kano, Katsina,

Sokoto and Bauchi. These states have a high livestock carrying capacity of about 9.7 million cattle, 13.5 million sheep and goat combined. The hides and skins production in the five major producing states between 2001 and 2002 is estimated at 0.47 million cattle hides, 7.9 million sheep and 6.6 million goat skins.

It was observed that 60% of the cattle hides produced are used for “Pomo” (human

consumption). This implies that only 40 per cent of the hides obtained from the slaughter houses are traded as raw material for the tanneries. Also, the “Pomo” market attract higher prices ranging from N800 – N950 per piece (medium), N1,000 – N1,100 (heavy) to N2,200 – N2,000 (extra heavy).

The current estimated off-take rate for goat and sheep skin is put at 10.93 million

and 7.0 million pieces respectively, giving a total annual skins availability of 17.93 million pieces.

There are about 40 registered tanneries in Nigeria, with processing capacity of well

over 310,000 bovine hides and 26.5 million sheep and goatskins per annum. The estimated current capacity of tanneries in the country is about 25.6 million pieces of hides and skins per annum.

The finished leather production in 2001 was estimated at 40,000 – 60,000sq.ft of

hide leather destined for the local market and 30 – 35 million sq.ft of sheep and goatskins leather of which 95 per cent were exported to Europe.

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The annual demand for finished leather by the end user industries in Nigeria is estimated at 75 million sq.ft by the footwear sector, while 25 million sq.ft are needed by the leather goods industries. Of this, only 18 per cent of the finished leather requirements can be sourced locally. The shortfall is often met through importation, including synthetic leather.

Manufacturing Production

The index of manufacturing production for cotton textile started declining in 1998 from 94.5 compared to 106.1 recorded in 1997 (using 1985 = 1—as base year). However, it picked up slightly in 2001 to 93.7 as against 93.3 in 2000.

For synthetic fabrics, the index dropped from 727 in 2000 to 665.6 in 2001.

The footwear industry has enjoyed a near constant level of index of manufacturing

production from 1998 (45.6) to 2001

The capacity utilization of the textile industry declined from 1997 when an average of 50 per cent was recorded to 20.8 per cent in 2001. The garment industry on the other hand experienced fluctuating capacity utilization within the same period.

For the leather products industry, the capacity utilization declined from 44.0 per cent in

1997 to 37.9 per cent in 2001. The level of capacity utilization in the footwear industry declined from 1998 to a current level of 22.9 per cent.

Generally, most of the industries in this sector have closed down or are operating at a

very low level due to the obvious problems highlighted below. Challenges facing the sector

The problems of the textile, wearing apparel, leather and leather products sector assumed wider dimension as from 1997 when government policy on import and export encouraged massive imports of products, dumping and even smuggling of finished products. This has impacted negatively on the industry.

The declining performance witnessed the closure of many industries leading to loss of

jobs estimated at over 60-70% of total employment within the last 7 years.

Factors that attributed to this situation included among others, high production cost, declining state of infrastructure, high cost of borrowing funds, (interest rate), obsolete machinery and high maintenance cost. The issue of effluent treatment which constitutes about 2 per cent of production cost is also affecting the survival of the industry. Furthermore, about 13.8% of the processing plants in the textile industry is less than 10 years, which implies high prominence of aged machinery.

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Prospects

Nigeria with a population of over 140 million people is a large and growing market for the textile, wearing apparel, leather and leather products industry.

Nigeria currently lacks a strong and dynamic garment industry despite the increased

importance accorded to garment and technical textiles in the textile value chain globally.

From the survey it was discovered that there is high propensity to export textile

products by large/macro enterprises especially to Europe and America. There are export potentials in the area of cotton, synthetic fibers, apparel and clothing, especially knitted fabrics.

For the leather industry, with the ban on export of wet-blue and with the installation of

machinery to process skins beyong the wet-blue stage, the declining export of leather picked up from 947,481kg in 2000 to 1,065,154kg in 2002.

The propensity to invest in the sector varies according to firm size as large/macro

enterprises have higher prospects to invest. The cumulative foreign direct investment (FDI)in the sector from 1998 to 2001 indicates a marginal increase in textile while it declined to a negative value in garment industry. The leather, leather products and footwear experienced dormancy in (FDI) from 1998 to 2000.

10.2 Raw Materials Requirement and Utilization The Nigerian textile and leather industries are mainly agro based in terms of their primary input such as cotton, hides and skins. The sector has potential to grow and achieve competitiveness, if there is adequate and sustainable supply of these primary inputs. The current low level of activities in the agricultural sector account for the insufficiency in the supply of cotton, hides and skins to the industry. Other inputs such as processing chemicals, dyes and auxiliaries are currently being imported, as local production capacity is limited compared to demand. Furthermore, the petro-chemical industry expected to have provided the raw material base for the establishment of downstream dyestuff and chemical raw materials has not taken off. These constraints, invariably affect the status of raw materials supply to the industry and therefore, made them to be heavily import dependent. 10.2.1 Textile Cotton fiber contributed more than 70 per cent of the fiber raw materials requirements and man-made fiber account for 30 per cent. The sub-sector produces various materials and products including:

Fiber: Cotton fiber, polyester staple fiber Yarn: Cotton yarn, polyester filament

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Fabric: Grey cloth, African prints, wax prints, home furnishings, dyed and printed fabric

Garments and made-ups; shirts , suits, gowns, blouses, etc. 10.2.2 Wearing Apparel The wearing apparel industry relies heavily on availability of quality fabrics and other inputs such as trimmings, buttons, zippers and other accessories. The basic inputs required in the wearing apparel industry are listed in Table 10.1 below. Table 10.1: Raw Materials requirement for Wearing Apparel Industry

Raw Materials Projected Annual Requirement Source

Thread 1.7 billion mtrs* Local (95%)

Press buttons 618.5 million pcs** Imported (100%)

Sleeve lining 66.2 million mtrs Imported (100%)

Tarpaulin 316 million pcs Imported (60%)

Coat linings 51.7 million mtrs Imported (100%)

Needles 19.8 million pcs Imported (100%)

Hook and Eye 165 million pcs Imported (100%)

Warding 16,500 tonnes Imported (100%)

Gum stay 2.2 million mtrs Imported (100%)

Zip fasteners 132 million pcs Imported (80%)

Fabrics 51.2 million mtrs Local (100%)

Buttons 16,912 million pcs Imported (19%)

Buckles 64.1 million pcs Local (60%)

Shoulder pads 50.6 million mtrs Imported (40%)

Lace trimmings 563.7 million mtrs Imported (100%)

Bias binding 18 million mtrs Imported (100%)

Embroidery thread 123.5 million mtrs Imported (60%)

Eyelets 134 million pcs Imported (100%)

Elastics 66 million mtrs Imported (80%)

Ribbons 49.5 million mtrs Imported (100%)

X metrs = meters xx Pcs = pieces

10.2.4 Leather (Tanning) Industry The principal raw materials for the sector are raw hides/skins derived from domestic animals, mainly cattle, goat and sheep, therefore, the livestock production is critical to the sub-sector. The higher the level of production of livestock, the higher the quantity of raw materials required and vice-versa. Nigeria is widely known for the production of the world’s finest goat skin, the “Sokoto red” and in recent years, the Nigerian hairsheep has become very popular in the international market. The potential supply of raw hides/skins is not in doubt as the country is endowed with large livestock population. Table 10.2 shows the livestock population figures in Nigeria.

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Table 10.2: Livestock Population Figures in Nigeria

2003 2004 2005

Cattle 15,602,601 15,738,343 15,875,267

Goats 47,551,701 48,740,491 49,959,046

Sheep 30,086,356 30,808,427 31,547,883

Camel 93,887 94,355 94,895

Source: Federal Livestock and Pest Control Dept., Abuja 2005.

The potential availability of hides/skins to the tanning industry can be derived from the table 10.2 above using the recent rate in Nigeria by FAO at 12% for cattle, 45% for goat and 31% for sheep. The domestic production of raw hides/skins, consistent supplies also came from the neighboring countries such as Cameroon, Chad, Niger, Burkina Faso, Mali and Central Africa Republic. Therefore, Nigeria has a reasonable supply of raw hides/skins and is capable of supporting big and expanding leather industry. 10.3 Products 10.3.1 Wearing apparel The diverse but similarly small-sized nature of wearing apparel businesses from different regions of Nigeria accounts for the equally diverse nature of their products. The common products of the industry include gentlemen, ladies and children wears, as well as uniforms. Table 10.3: Common Products of the Wearing Apparel Industry

Gentle men wears Ladies wears Children wears Uniforms Others

Jackets and Trousers

Jackets and Trousers

Trouser and shirt School uniforms Traditional wears

Safari Jackets and shirt Long and short sleeve shirts

Military uniforms Sokoto and buba

Long and short sleeve shirts

Skirt and blouse Knickers Private security uniforms

Babban riga, Kaftan

Vest-waist coat Gowns Jackets and Trousers

Danciki, iro and buba

Pyjamas Skirt and blouse Industrial textile

Picnic wears Gowns Tarpaulin

Underwears Pyjamas Mosquito nets

Ties Camp beds

Laboratory coats

Medical textiles

The Federal Government’s ban on importation of textile goods in the 1990s brought strong indications that the production output of domestic clothing industry increased considerably. However, this could not be achieved and translated into increase in exports as a result of the effect of the Federal Government’s signing of World Trade Organization’s (WTO) Protocols, of 1997, that led to the subsequent lifting of the ban on importation of textile materials. Prior to

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the acceptance of WTO protocols about 70 per cent of children’s and 60 per cent of women’s wears were being produced locally. As at 2006, the estimated total demand for textile fabrics in the country was about 1.2 billion meters per annum against an estimated domestic production of about 30 per cent of the demand; thus, the remaining 70 per cent demand balance was being met through importation of cheaper and second-hand quality products. 10.3.2 Leather Currently the tanning industry is suffering greatly from poor quality and quantity of raw hides/skins. In spite of the high slaughter figures, there is steady decline in the recovery rate of raw hides/skins. This lead to many fold losses due to high percentage rejects. This is attributed to a number of pre-and post-mortem defects of hides/skins occasioned by the total collapse of the hides/skins improvement services, as a result of which more than 80% of the hides produced are consumed as “Pomo”. About 60% of skins are sourced from unregistered markets while about 30% of total slaughter comes from animals imported across the borders mostly on the hooves. All these have attendant consequences on quality. This problem has consequently affected the down stream industries in the sub-sector namely footwear and leather goods industry which depend on the tanneries for their raw materials. Obviously, the tanners cannot convert poor raw materials to good quality leathers. The total installed capacities of the mechanized tanneries is about 300,000 pieces of bovine hide per annum, and about 30million pieces of goat and sheep skins per annum. Out of 43 leather manufacturers that existed then, only 16 are now functioning with 13 among them equipped to process crust and finished leather. The leathers produced by the surviving industry is 95% exported leaving only 5% that is virtually of reject quality for the domestic market. The estimated production of the functioning plants combining crust and finished leather is about 13,865,377 pieces for the year 2005 giving 46.2% capacity utilization. Table 10.4 shows list of major leather exporters for the year 2005. Table 10.4 Major Leather Exporters in Nigeria for the year 2005

S/No Names of Exporter Products exported Value (US$)

1 Unique leather finishing Nig. Ltd Processed skin/Finished leather 25,972,395.99

2 Mamuda Industries Nig. Ltd Processed skin 25,506,685.13

3 Fata Tanning EPF Finished leather 23,746,905.09

4 Mand Jose Enterprises Ltd Finished leather 22,422,804.74

5 Hufawa Enterprises Ltd Finished leather 15,054,887.65

6 Mahaza company Ltd Processed skin 8,154,296.37

7 TANORTH Tannery Ltd Finished leather 6,644,471.34

8 Multitan Ltd Finished leather 6,069,162.04

9 Codina Co. Nig Ltd. Processed skin 5,746,489.59

10 Kanotans S. A. Ltd Processed skin 3,281,808.09

11 Nasmier Ent. Ltd. Finished leather 1,419,850.00

12 Gashash Tanneries Ltd. Finished leather 1,003,075.00

13 Trends venerate Ltd. Finished leather 855,314.92

Source: CBN Annual Report, 2005

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In spite the closure of over 50% of the tanning industry in Nigeria, leather constitutes the largest individual non-oil product exported in recent years.

10.3.3 Leather Products The leather products industry have an estimated installed capacity of about 16.7 million pairs of footwear and 500,000 pieces of leather goods per annum. The current production is about 2.8 million pairs of footwear or 17% capacity utilization and 100,000 pieces of leather goods or 20% capacity utilization. About 90 – 95% of leather produced in Nigeria are exported. The remaining 5 – 10% is of low quality and cannot produce high quality footwear and leather goods. Therefore more leathers are needed to meet up with the requirement of the footwear and leather good industry. Furthermore, the recent banning of importation of finished leathers into the country by Federal Government has made it more difficult for footwear and leather goods industry to procure good quality raw materials to carter for their needs. Consequently, most of them have closed down and the few ones left are producing at very low capacity and with almost 90% of the products made from plastics. 10.4 Cottage Tanning/Footwear and Leather Goods Industries This group of industrial outfits have been playing leading role in employment generation. It is therefore, one sub-sector capable of redistributing wealth in line with government policy of poverty alleviation, if their product supply and quality are optimized and maintained. Tables 10.5 show production activities of some traditional tanning industries in Kano and give production activities of some selected cottage leather products industries in Nigeria. Table 10.5: Production Activities of Cottage Tanning Industries in Kano

Tanner Employees

Raw Materials

Production annum Total production per annum

Total/cost raw material (N)

Total annual leather sales (N)

Total production per annum (Ft2)

Peak (Pcs)

Off-peak (Pcs)

A 100 + Casual

Sheep 3,456,000 4,320,000 7,776,000 6,220,800,000 9,331,200,000 34,992,000

Goat 5,760,000 7,200,000 12,960,000 7,776,000,000 10,036,800,000 58,320,000

Total 9,216,000 11,520,000 20,736,000 13,996,800,000 19,368,000,000 93,312,000

B Monitor Lizard skin

20,000 25,000 45,000 9,000,000 11,250,000 -

Crocodile skin 20,000 25,0000 45,000 315,000,000 675,000,000 -

Alligator skin 120,000 150,000 270,0000 40,500,000 67,500,000 -

Python skin 12,000 15,000 27,000 67,500,000 94,500,000 -

Snake skin 16,000 20,000 36,000 3,600,000 10,800,000 -

Total 188,000 235,000 423,000 - 847,800,000 -

C 100 + Casual

Sheep 1,728,000 2,160,000 3,888,000 3,110,400,000 4,665,600,000 17,496,000

Goat 2,880,000 3,600,000 6,480,000 3,8888,000,000 5,184,000,000 29,160,000

Total 4,608,000 5,760,000 10,368,000 6,998,400,0000 9,849,600,000 46,656,000

a. Piece of leather = 4.5ft

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b. Peak period = 8 weeks after Sallah c. Off-peak period = remaining 40 weeks Source: Unpublished survey, CHELTECH, 2006. Table 10.6: Production Activities of Cottage Leather Retaining, Dyeing and Finishing Industries in Kano Industry Nos. employed Raw material Production per

annum (pieces) Total production per annum (Ft2)

Total sales income (N)

D 200 Wet blue 62,400 280,800 4,368,000

Vegetable crust 33,600 151,200 2,352,000

Total 96,000 432,000 6,720,000

E 12 plus 6 casuals Dyed leathers 96,000 432,000 32,400,000

Total 96,000 432,000 32,400,000

N/B a. Piece of leather = 4.5ft2 b. Production/service charge = D = N70.00/pc E = N75.00/ft2

Source: Unpublished survey CHECTECH, 2006. Table 10.7: Production Activities of Cottage Leather Products Industries

Specialization/ Types of Leather Products

Production/Annum (Pairs)

Material Input per Annum

Annual Leather Input(Ft2)

Annual Leatherette Input (Ft2)

Annual cost of Leather Input

Total Cost pf Leather (N)

Leather (Ft2 )

Leatherette (Ft2)

Lining (N) Upper (N)

FOOTWEAR

1. Ladies shoe 106.560 26,640 79,920 159,840 179,520 4,395,600 5,994,000 10,389,600

2. Gents shoe 84,960 21,240 63,720 169,920 509,760 4,672,800 6,372,000 11,044,800

3. Boots 21,600 5,400 16,200 54,000 162,000 1,485,000 2,025,000 3,510,000

4. Sandals 44,160 11,040 33,120 33,120 99,360 - 2,484,000 2,484,000

5. Slippers 50,400 12,600 37,800 37,800 113,400 - 2,835,000 2,835,000

Total 397,680 76,920 230,760 70,920 1,364,040 10,553,400 19,710,000 30,263,400

LEATHER GOODS

1. Bags (Pieces) 20,160 50,040 15,120 201,600 151,200 - 16,120,000 15,120,000

Total 20,160 50,040 15,120 656,280 2,668,520 - 34,830,000 30,002,400

Source: Unpublished survey CHECTECH, 2006

10.5 Machinery 10.5.1 Textile and Wearing apparel The sub-sector mainly uses the following machinery for its major processing activities:

i. Ginning Machines ii. Spinnerets iii. Mixing and blending machines iv. Opening and cleaning machines v. Carding machines vi. Comber machines vii. Draw frame machines viii. Speed frame machines

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ix. Dyeing machine x. Cutting machine xi. Sewing machines xii. Ringframe machines xiii. Open-end spinning machines xiv. Winding machines xv. Warping machines xvi. Looms (weaving machines) xvii. Sizing machines xviii. Washing machines xix. Finishing machines xx. Embroidery machines xxi. Folding and pressing machines

As at 2003, over US$70 million was spent in importing machinery into the country from Asia and Europe. Past techno-economic studies on the sector revealed that there has not been any local effort at production of textile machinery and component parts in the country. The machinery and components aforementioned as well as their spare parts were imported. In order to meet the present demand and quality requirement for both local and export markets production, and to guarantee sustainable industrial operation, it is necessary for the country to locally develop or build up the capacity for machinery and equipment fabrication. Also, there is need to standardize existing machinery so as to encourage the development of standard spare parts for local use. This will save foreign exchange in acquiring them, ease delays experienced in their acquisition and create more employment opportunities for Nigerians. 10.5.2 Leather and Leather Products Table 10.8: List of Raw Materials requirements for the tanning industry

Raw Materials Sources

Hides and skins 100% local

Actellic dust 100% imported

Hydrated lime 80% imported 20% local

Sodium sulphide 100% imported

Sodium chloride 80% imported 20% local

Chromium sulphate 100% imported

Pancreatic bate 100% imported

Sodium bicarbonate 100% imported

Sodium carbonate 100% imported

Sodium sulphate 100% imported

Sulphuric acid 60% imported 40% local

Ammonia 100% imported

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Ammonium sulphate 100% imported

Ammonium chloride 100% imported

Syntan 100% imported

Fatliquor 100% imported

Dyestuff 100% imported

Formic acid 100% imported

Binders 100% imported

Nichocellulose lacquer 100% imported

Pigments 100% imported

Plasticizers 100% imported

Table 10.9: List of Raw Materials Requirements for the Footwear and Leather Goods Industries

Raw Materials Sources

Finished leathers 100% local

Natural rubber 100% local

Synthetic rubber 100% imported

Fillers (CaCo3, CaSio3), AlSio3) 80% imported 20% local

White pigment (Tio2) 100% imported

Other pigments 100% imported

PVC master batch LDPE/EVA 100% imported

Acceleration 100% imported

Sulphur 100% imported

Activator (Zno3, C2Hs4CooH) 100% imported

Heat stabilizers 100% imported

Adhesives 55% imported 45% local

Solution (MEK, MIEK, 100% imported

Toluene (Acetone)

Lacquers 100% imported

Shanks (steel) 75% imported 25% local

Threads 70% imported 30% local

Vibox PVC limimg sheet 70% imported 30% local

Buckles 80% imported 20% local

Plasticizers 100% imported

Insole boards 100% imported

Textile (Dusck, Drill, Calico) 100% local

Counter materials 100% imported

10.5.3 Industries operating In the sector The Textile, Wearing apparel, Carpet, Leather and Leather products sector is still bedeviled with the age long depression in terms of its performance at both the domestic front and off-shore. The sector has remained highly uncompetitive locally and globally due to a multiplicity of mind boggling problems that range from:

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- high cost of production - unstable local raw materials supply situation - obsolete machinery - inconsistencies and unfavorable government fiscal policies - poor industrial infrastructure - high cost and inadequacy of energy supply - high cost and inadequacy of funds - Dumping of second hand and cheap but sub-standard products from more

developed economies, particularly, India, China, Malaysia, etc.

The sector is dying by the day as a result of Nigeria’s premature entry into the WTO without preparing the local industries to be able to face the global competition. This premature decision has led to the closure of most of the once very vibrant industries, leaving less than 30 per cent of them operating either epileptically or managing to survive with little succor provided by Government through the modified Export Expansion Grant (EEG). Operators in the sector are set on collusion among themselves through banning and unbanning of importation of some of their raw materials and or products. 10.5.4 Textile and Wearing Apparel The textile and wearing apparel sub-sectors are made up of industries engaged in

i) Spinning, weaving and finishing textiles ii) Textile goods such as towel, blankets, household linen iii) Knitting goods (knitted fabrics, embroidery lace) iv) Cordage, rope and twine v) Tough textile (tarpaulin, immitation leather, umbrella, zip and vi) Wearing apparel (garment, singlet etc.)

Thus, the industry embraces activities of a wide range nature, from cottage level craft to the state of the art technology in textile production. There were 181 registered textile industries in Nigeria, out of which only a small fraction were known to be involved in all of the major afore-mention activities. Though textile plants are located across the country, the largest concentration is found in Lagos; a sizeable number is also found in Kano. 10.5.5 Wearing Apparel According to the previous study reports, the wearing apparel industry was noted to account for more than 10 per cent of the GDP in the 1960s and 1970s. However, the trend could not be sustained for obvious reasons such as the neglect caused by the oil boom and the indigenization decree. The increases in personnel emoluments accompanying the oil boom veered the taste of the Nigerian consumers towards imported wearing apparel. Also, the large foreign wearing apparel manufacturers folded up due to the indigenization decree. It is noteworthy that wearing apparel is quite strategic to the textile value-chain and a vibrant industrial climate could boost national economic growth and create jobs.

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There are only a few surviving wearing apparel industries today; hence there is limited demand for fabrics from the textile industry for wearing apparel production. At the global level, there is increased importance attached to wearing apparel in the textile value chain. The local wearing apparel industry exists only at small-and medium-scale levels. This is so in spite of the enormous market potential offered by the large population of the country in particular and West Africa in general. As noted earlier, the wearing apparel sub-sector offers immense opportunity for value-added textile and clothing. Also, it provides an avenue for saving foreign exchange for the country and contributes to the monumental growth of the GDP. The African Growth Opportunity Act (AGOA) initiated in 2000 by the United States and the Multi-fiber Arrangement (MFA) are opportunities that exists in the sub-sector from which Nigeria can tap. AGOA related trade between Nigeria and the US in the area of textiles and wearing apparel as well as footwear in the last four years shows that Nigeria is suffering a trade deficit. Not withstanding the previous studies carried out with regard to the wearing apparel sub-sector, there are not enough and accurate data on the activities of the sub-sector with respect to production and marketing. A casual observation would show that its output has been on the increase in recent times due to increased activity within the ‘fashion design’ business outfits across the country. The domestic wearing apparel industry does not meet the local demand, and in addition, what is produced locally has to compete with wearing apparels imported from countries such as Pakistan, Indonesia, Taiwan, Hong Kong and South Africa. Previous techno-economic survey reports indicated that although there were no reliable export figures for the fast growing, internationally accepted adire (batik), tie and dye products such as Kampala, and hand woven aso oke, akwete, etc., there were indications that about 30 per cent of the locally produced textile wearing apparel for women and children were exported unofficially, especially to some neighboring West African countries. A cursory look at the structure of the wearing apparel sub-sector in terms of sales, employment and functionality revealed that:

i. Most are cottage or small-scale businesses. ii. Their prices and sales differs as they operate to suit different customer needs in

rural and urban area. For instance, the CBN Annual Report of 2005 shows that for clothing and footwear, the annual percentage change in rural and urban consumer price indices between 2004 and 2005 were -0.2% and 0.2 respectively.

iii. Due to their small-scale, the level of employment is correspondingly low, the

average range of the number of employees being between two and five.

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iv. Most large-scale wearing apparel businesses have folded up due to unfavorable industrial climate, mainly characterized by erratic power supply, inadequate working capital and more importantly, the negative effect of importing cheaper and second hand clothes from the Far East and Europe.

Table 10.10: Consumer price indices for clothing and footwear

Consumer price index

Year Percent change over preceding year

2003 2004 2005 2002 & 2003 2003 & 2004

2004 & 2005

Composite 91.5 110.5 118.3 20.8 7.1 0.7

Urban 116.6 123.6 123.8 20.7 6.0 0.2

Rural 105.6 114.6 114.4 16.9 8.3 -0.2

Source: Adapted from CBN 2005 annual Report.

With respect to the general performance of the wearing apparel sub-sector, two seminars were organized in Lagos in July and Kaduna in august 2002 by the Manufacturers Association of Nigeria (MAN) and the RMRDC, which came up with the following observations and recommendations: The major problems identified for the wearing apparel sub-sector were:

i. Sub-standard quality of finished goods ii. Dearth of manpower/personnel iii. High cost of production which is as a result of the country’s low level technology iv. Unpredictable power supply and poor infrastural facilities

In addition to the general recommendations of the textile and allied sector, the seminars recommended that following for the Government, which has a major role to play in the sustainable development and growth of the sector:

i. Policy legislation/inducement of the dress code for government functionaries as a way of stimulating local patronage

ii. Compelling National Orientation Agency to intensify its reorientation campaign on consumption of Nigerian products and services

iii. Large-scale dissemination of information on the benefits of the American Growth Opportunities Act (AGOA), especially in respect of standardized product specification for America.

iv. Improvement of infrastrural facilities and accessories v. Reduction of duty on equipment/machinery and accessories vi. Establishment of technical colleges and institutes and the employment of foreign

teachers as strategy for technology transfer and adaptation vii. Assisting and supporting members in the attendance of international investment

summits, trade fairs and exhibitions viii. Providing funds for credit.

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The indigenization decree of 1972 and the introduction of the Nigerian Enterprises Promotion Decree as amended in 1977 has not assisted the sub-sector much since these policies were not adequately backed by substantial investment promotion drive. Consequently, the industry still experiences limited investment despite the high potential it offers for 100 per cent foreign investment and the large domestic and export markets. Due to the peculiar nature of the wearing apparel sub-sector in Nigeria in terms of its small-scale nature, it is very difficult to presently determine the production and consumption patterns of wearing apparel. However, the sub-sector is generally characterized by fluctuations in capacity utilization in recent times due to the problems enumerated earlier. There are no specialized distribution channels for wearing apparel sub-sector in Nigeria, as is obtained in other sub-sectors for the manufacturing industry. For instance, retailers/marketers source their supplies from various locations across the country with retail trade enjoying most of the distribution mechanism, while the department stores, boutiques, etc. account for only about 5 per cent. The wearing apparel sub-sector can thus be summed up as the most informal business sector within the Textile, Wearing apparel and Leather sector. 10.5.6 Leather and Leather products The Leather and Leather Products sub-sectors are very important segments of the industrial sector in Nigeria. These are strategic to economic development in view of their enormous potentials in promoting inter and intra sectoral linkages, technological development, employment generation, foreign exchange earning, export oriented, resource based and private sector led industrialization. Table 10.11 showed list of industries with significantly linkages with leather and leather products industries. Table 10.11: List of Industries with Linkages with Leather and Leather Products

S/NO INDUSTRIES PRODUCTS

1 Livestock production Meat industry

2 Petro-chemical Syntan, dyes, pigments, PVCs LDPE, EVA, Solvents, etc

3 Foundry and forges Industrial spare parts

4 Electrical Industrial spare parts

5 Chemical Tanning agents and auxiliary chemicals

6 Iron and steel Flat sheets for shanks, buckles, eyelets etc

7 Agriculture Livestock by-product, hides and skins

8 Rubber Latex, foam etc.

9 Textile Textile fabric, duck, drill, calico etc

The sub-sector is classified into leather industry and leather products industry. The two are highly capital and labour intensive, with the former being higher in capital and involving processing of raw hides/skins through tanning, while the later is higher in labour and involving

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the use of processed leather for footwear and other goods manufacture. The traditional cottage industry is operated by individuals either within the family or somehow organized clusters. Although over the decades Nigeria has made transition from being raw hides/skins exporter to crust and finished leather exporter, it is worrisome to note that the industry is still bedeviled with some difficulties such as: - Poor infrastructural facilities - Poor quality and quality of raw hides/skins - Lack of technical support services - High cost of inputs - Poor access to industrial financing, etc. While the footwear industry and the leather goods industry have collapsed, with only very few players in the sub-sector producing at very low capacity, the rest have closed down. The leather products manufacture is now dominated by the small cottage scale producers.

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CHAPTER ELEVEN

WOOD AND WOOD PRODUCTS SECTOR 11.1 Introduction The ever increasing socio-economic and industrial activities in the country and their attendant impact on forest estates of Nigeria have been a source of major concern to scientists, environmentalists, industrialists and the general public in recent times. Further to this, the versatility of wood as a raw material coupled with its infinite uses has further aggravated the exploitation of wood resources in the country. Since 1782 when commercial wood exploitation commenced in Nigeria, the national wood industry has tranverse a variety of circumstances. Wood exploitation which picked at 700,000m3 in the1960’s reduced drastically to 290,000m3 in 1970 as a result of significant reduction in the volume of available wood in the nation’s forests. The major problems militating against the sector have been overexploitation of wood resoources, inadequate management practices, low technical capability in the areas of biotechnology and genetic engineering for production of improved seedlings for establishment of plantations of economic wood species, dependence on imported technology, equipment and spare parts, and lackadaisical attitude to policy implementation practices. Another major problem in the conversion of forest land to other land uses and unpopularity of plantation wood in the sector. In developed countries with advanced technology, wood is converted to plastics, synthetic textiles, glues and other types of bonding agents and industrial chemicals. Wood cellulose and lignin could be converted into sugars, pentosans, alcohol, etc., thus, with advancement in process technology, forest exploitation continues to be on the increase. In view of the ever-increasing demand for wood and its products, the earlier notion that wood resource base is inexhaustible in the country has now been disproved as the resource is being gradually destroyed by deforestation, overexploitation and reduction in diversity of species. The nation’s forest reserves, estimated at 9.7% in 1960, reduced to 8.0% in 1976. This has dwindled considerably to less than 6.0%. In addition, the quest by some state governments during the military administration in the 70’s for foreign exchange extended the pressures to forest plantation timber species through gregarious exploitation of plantation species for export. Currently, the mature stock of plantation of Tectona grandis in the country has been exhausted mainly as a result of uncontrolled exploitation for export. Focus has now been shifted to the use of Gmelina species that are widely available in plantations in Nigeria. Currently there are about 89,000 hectares of Gmelina arborea plantation in Nigeria to supply the pulp and paper mills. As most of these are matured due to stagnation in the activities of the Pulp mills and efforts to use the wood in wood products sector have not met with adequate acceptance in view of quality problems. Similarly high dependence on wood as a source of fuel, especially in rural communities must be discouraged.

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Nevertheless, it has been estimated that there are ten types of wood based industries in Nigeria. These comprise of sawmills, plymills, particleboard mills, furniture manufacturing, flush doors, wood preservation, tooth pick, ice cream spoons and an array of medicare products. Of these, the 2007 survey considered only sawmill, furniture and wood based panels sub sectors. Most of the furniture, sawmills and based panel industries are located in the wood producing states of Lagos, Cross Rivers, Edo, Ondo, Oyo, Imo, Delta and Ogun states which account for more than 90% of the saw milling business in Nigeria. The furniture industry accounts for 80% of the wood based industries, 24% of which are based in Lagos alone. Currently, most of the plywood and particle board producing industries are no longer operational. 11. 2 Raw Materials Requirements in the Sector Over 85 key raw materials have been identified as essential to the day-to-day operation of the wood based industries. Wood, inform of logs (or lumber) is the basic raw material of all wood industries. Other major raw materials can be classified into 8 groups (Table 11.1). A large number of the raw materials required in the wood industries are finished products. Examples of these include plywood, adhesives, particle boards, etc. The key raw materials required in sector are shown in Table 11.2 and they are subsequently discussed. 11.2.1 Wood requirements The Report of the Multidisciplinary Task Force Survey of 1991, showed that Nigeria had 14.9 million hectares of forest land which was capable of producing about 305 million m3 of wood. The report further indicated that not all the wood were ripe for exploitation. It was recorded that only 70% was utilizable as at that time. About 80% (172 million m3) of this amount was contributed by the rainforest and the rest (42 million m3) from plantations. Subsequent survey reports indicated the volume of utilizable wood (ie. Wood 30 cm and above) was 530 million m3

in 1992, and rose to 710 million m3 in 1996. Although, no provision was made available of volume of utilizable wood in 2003 and 2007 survey reports, it appears that the volume of available wood species of adequate diameter has dwindled considerably in the forest reserves and this would necessitate initiation of a variety of actions to mitigate this development. 11.2.2 The Saw Mill Industry Primary conversion of logs for other wood based industries is carried out in the sawmill. The distribution of sawmills in the country in 2006, was not significantly different from what was reported by the survey that took place in 2003. In all, about 1,325 sawmills operated within the economy in 2006. The total installed capacity of the sawmills in Nigeria according to the 2006 report was 11.7 million m3 of wood, while actual capacity utilization was 3.8 million m3,

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translating to 29.05% utilization capacity. The total roundwood requirement of sawmills in 2006 was 21,146, 053m3 out of which 6,732,857m3 was utilized (Table 11.3). 11.2.3. Ply Mills National log requirement of the eight plymills in 2006 was 121,218 cubic metres which was far below their installed capacity of 572,051 cubic metres of logs. The capacity utilization in terms of log input was therefore only about 21.2% percent. The major factor militating against optimum capacity utilization in the plymills is the non-availability of logs with the desired qualities for plymilling as plywood or veneer production requires input of logs of prime quality. In year 2003, capacity utilization was about 24.5% (Table 11.3). 11.2.4 Particle Board Mills Capacity utilization of particle board mills in 2006 was 67.9%. This was the highest in the national wood based industries. The total installed capacity was 85,500 cubic metres, while the total log requirement in the particle board industry was 52,600m3 (Table 11.3). The major obstacles to the achievement of higher capacity utilization in this industry was the problem of obsolete machinery which breakdown very frequently, as well as management problems. 11. 2. 5. The furniture industry Wooden furniture parts and components are now being manufactured and exported by few large companies in Nigeria. Wooden furniture represents the major market for wood products in Nigeria. The furniture industry is fairly well distributed all over the country especially in state capitals and almost in all urban and semi-urban areas of the country. However, major concentrations in terms of quantity and quality are in Lagos, Edo, Delta, Oyo, Osun, Rivers (Port Harcourt), Kano, Kaduna, Borno, (Maiduguri) States. More than 1,200 furniture companies of various sizes exist in the country. This figure excludes numerous road side and under-the-shed furniture makers that span the entire length and breadth of the country. This category of furniture makers are usually found in the rural and urban areas where middle and low-income earners reside, enabling them to get ready market for their products. These cottage-type furniture makers employ only about 2-5 workmen. Many of the industries suffer from high cost of production due to energy cost as a result of unreliability of electricy supply from national grid. Most of the furniture companies season their wood using air drying method. Air drying takes a longer time, and despite this, the seasoned wood cannot get to the level of atmospheric equilibrium moisture content before use. This development has increased dependence on imported furniture by the elites despite their high cost.

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Doors Wood door – flush, stile and rail are very popular in the country. Hand made and carved doors are frequently seen exhibited along roadsides by small carpentry workshops. Good quality wooden doors, especially those with decorative veneers or with good quality carvings are traded internationally. These type of doors offer potentials for exports from Nigeria. For this to be visible however, there is need for better training for local artisans operating in this subsector. In addition, good tools, equipment and glue are badly needed in the subsector. 11.3 Sources of Roundwood (Logs) Table 11.4 showed the geographical distribution of forest land and timber stocking in Nigeria. It is however pertinent to stress that only trees extracted from forests in Rivers, Lagos, Edo, Delta, Cross River, Akwa-Ibom, Ogun, Ondo, Oyo, Osun, Kaduna, Kwara, Kogi and Niger states were actually available for use in the wood industries in 2006. Thus, although the total stocking of trees above 30cm diameter in the whole country is 875,484,500 cubic metres, the trees available for production in the wood industries was 725,126,6000 cubic metres, i.e the trees from the above mentioned states. The sawmill industry has started utilizing what used to be known as lesser-known or lesser-used species. Thus trees like Bombax, Ceiba, Akomu, Okwen are all already being converted in the sawmills. The sawmills may, thus, not run out of utilizable logs in the foreseeable future since minimum diameter of logs utilized in most sawmills and plymills are already as low as 30cm and the plantation species are currently being used in the sawmilling industry. Most projections of log availability in earlier reports were based on a minimum log cutting diameter of 60cm. The plymills and veneer plants however have serious problems. Although there is still a large volume of wood available to the sawmills and particle board mills, most of such logs are inferior logs whose qualities are unsuitable for the production of decorative veneers. Besides, the mahoganies, the obeche, the walnut and the mansonia have almost been fully creamed out of the forest. The only hope will be the shift of emphasis from the production of the traditional plywood to the production of veneers for overlayment of particle board. In this way, what is left of the prime species can be stretched over many years of utilization. Also, the technology for the production of veneers must be improved to allow for the production of thinner veneers as well as permitting peeling of logs to smaller peeler core sizes. 11.4 Adhesives These are gumming substances used in wood and wood industry, especially in plymill, particle board, flush and panel doors production as well as in furniture and safety match industries. The domestic wood and wood products industry depends mostly on importation of most of its adhesives. Some of the commonly used adhesives are highlighted.

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11.4.1 Poly vinyl acetate, (PVA) Glue This category of glue embraces ponal, evostic and other rubber-based binders used mainly by furniture factories and few overlay plants. In 2003 about 1,140 tonnes were consumed as against full capacity requirement of 2,430 tonnes. In 2005 consumption increased to 3,087 tonnes at the prevailing production level while at installed capacity 5,947 tonnes would have been required. The bulk of the PVA glue used in the country is produced locally using imported process inputs. 11.4.2 Urea Formaldehyde Urea formaldehyde (UF) is the most widely used adhesive in the wood and wood products sector. It is used mainly in ply mill, particle board, flush door and furniture factories. In 2003 an estimated 79,500 tonnes were used as against the installed capacity of about 109,725 tonnes. The ply mills and furniture industries jointly accounted for the highest percentage (99%) of the UF consumed in 2003. In 2006 the consumption figures for ply mills and furniture industries were 12,247 and 24,472 tonnes respectively. 11.4.3.Phenol Formaldehyde Phenol formaldehyde resin is used particularly as a binder in plymill and particle board industries in Nigeria. It was favoured by the nation’s biggest plywood industry AT&P, Sapele when it was operational. In 2003 total consumption of this type of adhesive stood at 900 tonnes while total installed capacity was 1,915 tonnes. In 2006 the consumption was 2,770 tonnes with the corresponding installed capacity of 4,540 tonnes. The binder is compounded locally using imported raw materials (phenol, paraformaldehye and caustic soda). 11.4.4. Glue Thread This substance is used extensively in the plymills and furniture industries. The former accounts for 41% and the latter 59%, of the total consumption. In 2006, 17 tonnes of glue thread were consumed against potential requirement of 28 tonnes at full capacity. In 2006, 7,338 tonnes were consumed. All of the glue threads used in Nigeria were imported. 11.4.5. Hot Melt Like glue threads, hot melt is used by plywood and furniture industries. It is also used in veneer production. The amount used in 2006 was about 1,274 tonnes. 11.5 Basic Chemicals used in Resins These include chemicals that serve as hardeners and extenders when added to resins during formulation just before being applied to the wood. They comprised of urea, ammonium

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chloride or sulphate, paraformaldehyde, kaolin, caustic soda and hexamine. They are added to either urea or phenol formaldehyde. Of recent, coconut shell flour is being used in phenol formaldehyde glues as an extender. The chemicals are by and large used in the plywood and furniture factories. In general, demands for the overlay materials in the wood-based industries at the prevailing levels of production were just about 50 per cent of the installed industrial capacities. 11.6. Industrial Chemicals These are chemicals used in the wood and wood-based industries. In the furniture industry, ten chemicals are critical of which six (thinners, stains, lacquers, sealers, paints and varnishes) are used in appreciable quantities. In 2003, 1,850 tonnes of thinners, 900 tonnes of stains, 3,370 tonnes of lacquers, 3,390 tonnes of sealers, 4,180 tonnes of paints and 2,570 tonnes of varnishes were consumed at the level of production in that year. The other four chemicals (putty, insecticides, fungicides and latex) were required in lesser quantities of 360, 250, 160 and 80 tonnes, respectively. In 2006, the corresponding requirements were 4,187 3,288, 6,289, 6,303, 3,171 and 5,058 tonnes for the six macro-chemicals i.e. thinners, stains, lacquers, sealants, paints, and varnishes and 1,373, 160, 160, for putty, insecticides and fungicides, respectively. 11.7. Overlays Overlays are embellishing materials used in furniture, flushdoor and particle board industries. They include paper, kraft paper, vinyl veneer, melamine impregnated papers, formica, paper foil and wood veneers. 11.7.1 Foams, Fittings and Upholstery Materials These materials include leathers, textile webbings, fabrics and threads used in the furniture industry. In 1988 actual foam consumption was estimated at 100,000m3 as against the installed capacity of 212,980m3. About 612,504m3 of foam was used in 2003 and in 2006 the volume dropped to 256,522m3 . The quantities of formica, melaninie overlay sheets, kraft paper, and paper foils used in 2006 are shown in Table 11.5. It is noted that most of the natural leather available in Nigeria may not be suitable for use in furniture applications. This is due to deterioration in quality brought about by abrasion as the animals wade through shrubs and trees in the savanna and forest zones in search of pasture. As a substitute, the furniture industry will have to rely on smaller sized skins. 11.8 Availability of Local Raw Materials that could be Developed and used by the Industries in the Wood and Wood Products Sector A few institutions in the country have embarked on the production of substitutes for currently imported raw materials. Some of the areas requiring urgent attention are as highlighted below:

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11.8.1 Adhesives Every section of the wood based industry uses adhesives with the exception of sawmills. The major adhesives in use are the Urea Formaldehyde (UF), the phenol formaldehyde (PF), the melamine formaldehyde (MF), resins are all imported or as in the case of PF in A.T. & P when it was operational, produced locally from imported raw materials. Although there are a number of chemical companies producing PVA adhesive locally, all their raw materials are imported. The deteriorating exchange rate of the Naira therefore seriously affects the cost of adhesive utilized in the wood industry. It is therefore understandable that besides log availability, the high prices of adhesives have greatly increased the cost of production of most wood-based products. Although it is hoped that the third phase of the petro-chemical industry may seek to resolve the problem of production of basic raw materials for the adhesive industry, no definitive plans have surfaced. However, the production of high quality wood adhesives from tannin obtainable from trees with rich tannin content is being perfected in various institutions, including Ahmadu Bello University, Zaria. Some of the trees being used include the following:

- Acacia senegal - Rhizophora spp - Acacia albida - Albizia coriaria - Alchornea condifolia - Anicennia africana - Brudelia spp - Burkea africana

Effective wood adhesives have been developed from gum arabic, which is an exudates from the tree of Acacia senegal. However, the price of gum arabic is prohibitive for three main reasons.

i) Most Acacia senegal trees are currently growing as wild trees and not Inplantations as a result, the supply is low. ii) The collection is seasonal. It is mostly done during the dry season. iii) There are a number of competing uses for the gum in the confectioneries and

pharmaceuticals. It is also an important non oil export item in the country.

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The RMRDC is currently supporting the establishment of large plantations of gum Arabic in the Sudan and Sahel ecological zones of the country in collaboration with some private sector operatives. . Starch and Dextrin Good wood adhesives have been developed from starches and dextrin. However, the major set back, to their wide scale application is that they are biodegradable. The also have low moisture resistance. Other adhesives raw materials from vegetative sources are the spent liquor from pulping operations, furans and cellulose. . Protein-based adhesives These may be produced from animal bones and hides, blood (whole or albumin, casein from milk) and Soybean. 11.8.2 Extenders and fillers

Kaolin A large volume of inert non-metallic minerals are used as extenders and fillers for glue reconstituted for the production of plywood and flushdoors. For many years, China clay was imported into Nigeria for the purpose. The role of the extenders and fillers are to cheapen the glue and to extend the closed assembly time of the plywood on flushdoors. This function has been effectively performed by locally available kaolin. In some cases where the kaolin originates from highly acidic sources with pH3-4, the use of such kaolin has eliminated the need to add hardeners to the glue. The total estimated reserves for Kaolin in Nigeria are about 2 billion tonnes. Some of the sources are shown in Table 11.6.

Coconut shell flour and olive stone flour Coconut shell flour or olive stone flour is used in some mills as extenders and phenolic resins. These are currently imported. This raw material can be eliminated completely and substituted with kaolin. Where the use of coconut shell or olive stone flours is imperative, these can be developed from locally available sources.

Wood waste utilisation potentials Before now, Nigeria used to be a wood-surplus country. This position has deteriorated greatly as a result of ineffective control of forest exploitation as well as inefficient conversion or the forest resources most especially wood in many sawmills, especially, the small-scale sawmills in the country. The future of the wood-based industries in Nigeria is in jeopardy unless a deliberate attempt is made to enhance the life of the commercial forests.

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Although in 1989 the total available volume of commercial trees above 30cm diameter at breast height (dbh) was estimated at 305 million cubic metres in Nigeria’s 14.9 million hectares of forest land (natural and man-made forest), at current deforestation rate of 2 per cent per annum, only 244 million cubic meters will be available by the year 2010 because of poor maintenance culture. According to Hussain (1991) “Nigeria’s 3000 Sawmills, numerous veneer mills and three pulp and paper mills represent a demand for industrial wood which exceeds the sustainable supply from existing plantations, forest reserves and remaining high forests by 2-3 million cubic metres yearly.” Definite policies therefore need to be put in place in order to prolong the life of Nigerian forests. Some of the desirable policies will involve judicious forest exploitation, aggressive aforestation programmes, improvement of conversion efficiencies, encouragement of vertical integration of the wood industries, emphasis on proper wood storage and preservation practice, as well as an articulated policy on wood waste management. From the beginning of the tree extraction process in the forest to wood finishing in the industries, there is copious evidence of great wastage of the wood resource as a result of inefficient processing methods and utilization of old and obsolete equipemts. In some cases, inefficient operators also lead to substantial loss of wood resources. Crooked logs, off-cut, large branches are abandoned in the forests and in the mills there are piles of slabs, half-processed materials, rejects and sawdust. As a result of lack of sophistication and vertical integration in the production process in most of the industries, large volumes of wood waste are not being recycled. The desirable situation is the recycling of wood wastes like peeler cores of lumber from sawmills. This may form the basis of establishing mills to convert such pieces of wood for the manufacture of small useful wood products like flooring blocks, police batons, and matches handle. Wood wastes can be recycled in a number of ways as illustrated below:

Particle Board Manufacture from Wood Waste Wood wastes are suitable for particle board production. Such wastes include large branches of trees, crooked trees, slabs and peeler cores from the plymill. These can be cut into 1-2 metre lengths and chipped and dried for particle board production.

Cement-Wood-Based Products from Wood Waste (Sawdust and Slabs) In many parts of the world, cement-wood based products are being manufactured particularly for use as flooring tiles, wall tiles and as ceiling boards. This involves the use of sawdust or the flaking of wood slabs or odd wood pieces and mixing them with cement together with other chemicals in some definite proportions. These products have been tested and most of them compete favourably with conventional ceramic products or the asbestos ceiling sheets.

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Small Machined Products from Wood Wastes In the rubbish dumps of most sawmill can be found large volumes of pieces of wood less than one metre in length. Such pieces of wood are in most cases regarded as nuisance and are therefore burnt. These pieces of wood can be converted through simple processing into valuable small wood products like clothes hanger, hand brushes, flooring blocks, handles, batons, toys and novelties, souvenirs, plaques, photo-frames, flower vases, kitchen wares like chopping boards, wooden trays, wooden spatulas, rolling pins for kneading and so on. In this way, wood wastes, once considered a nuisance, can be converted into money. The use of these wastes by recycling instead of extraction of trees from the forest for the same purpose helps to conserve the forest resource and to extend its life.

Briquettes from Wood Waste Briquettes are a form of densified wood fuel produced from wood residues including wood bark. Conventional consumers of coal or firewood find briquettes very appealing because they are dry, uniform in size and thus easier to store and keep. The uniformity and increased heating value per unit volume also provides better composition control and overall combustion of residues into moulds. They are ideal fuel for picnickers and all operators of ovens utilizing solid fuel.

Fuel for Boilers from Wood Waste Over the centuries wood has been used as source of fuel, but sawdust, by and large has always been regarded as a nuisance. Sawdust is however, a very good source of heat energy for firing water boilers. Most of these boilers are required to generate steam for heating driers, presses, kilns, ovens, sterilizers, classifiers and so on. Most African countries in the rain forest zone are saddled with great debt burdens and can ill afford the use of fossil fuel for firing boilers. Sawdust and other wood residue therefore constitutes very good substitute for oil as fuel for firing the boilers. Thus plymills, sawmills with kiln seasoning facilities, particle board mills, oil mills, gari mills, grain mills and any outfit which requires heating or boiling or drying can utilize sawdust or any other wood residue as source of fuels for their boilers.

Wood Gas, Wood Oil and Wood Char from Wood Waste Wood can be converted by a process of pyrolysis into inexpensive, clean and energy efficient industrial fuels. For example the Enerco 24D pyrolyzer converts woody biomass into low cost energy, capable of processing up to 72 dry tonnes of wood waste per day. The 24D utilizes a variety of wood resources, including run-of-mill sawdust, chips, bark, planer shavings and hugged wood. Materials can be mixed and there is no need to size-sort the feed materials prior to pyrolysis.

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This pyrolysis system can help reduce high energy costs. It uses waste heat to pre-dry wood. From each 3 tonnes of pre-dried wood indeed, the Enerco 24D produces 1 tonne of char, 7 million BTU of gas and 7 million BTU of oil each hour the total energy equivalent of 1294 litres of oil (i.e. 431 litres of oil per tonne dried wood). The safety design includes full flame-out protection. It is built to operate outdoors, around the clock, in most weather conditions and is space as well as cost efficient. The entire complex, with the dry wood-feed, charcoal and oil storage requires less than one acre. (for more information contact Enerco Associates, 139A Old Oxford Valley Road, Langhorne, Pennsylvania 19047, USA, Tel: 215/493-6565). 11.9 Industries Operating in the Sector As highlighted earlier three major subsectors exist within the sector. These are the sawmills, wood based panel products and the furniture subsectors. In the sawmill subsector, the predominant operatives are the cottage/small scale, 3-5 men companies producing furniture items based on specification for customers. The wood based panel products subsector however has been adversely affected by economic conditions within the country. In 2006, only three companies produced plywood to any reasonable extent. The saw mill industries are scattered throughout the country, although they are predominantly found in the Southern part of the country in view of raw materials availability. Other companies such as foam, adhesive producers, producers of fittings, etc., cannot categorically be listed as industries within the wood and wood products system as the items are regarded as secondary and tertiary raw materials. In all, 156 companies responded to the RMRDC 2006 survey exercise. These companies are listed in the report of the Multi Disciplinary Task Force on wood and wood products that was carried out in 2006. It is imperative to point out that the critical gains made through establishment of industries such as ATP, NIROWI, etc had been completely eroded as the country now predominantly depend on the importation of items produced by these pioneer companies. Consequently, the onus is on government to provide enabling environment to resuscitate these industries and to encourage private sector investment in the production of wood based panel products. 11.10 Investment Opportunities in Wood and Wood Products Sector A variety of investment opportunities exist in this sector. The investment importance of the opportunities are further heightened as wood, the major raw material of the sector, is becoming scarce worldwide and there is apparent need to substitute wood wastes for solid wood as much as possible in a number of industrial applications. Most of the investment opportunities were elucidated and discussed under section 11.8 which highlighted the availability of local raw material that could be developed and used by the industries in the wood and wood products sector. Consequently, the local raw materials that could be

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developed form the fulcrum of investment opportunities in the wood products sector. These, and other available investment opportunities are listed as follows: . Particle Board Manufacture from Wood Waste . Production of Cement-wood-based products from Wood Waste (Sawdust

and Slabs) . Production of small machined products from wood waste . Production of Briquette from Wood Waste . Production of Wood-Adhesives . Establishment of plantation of industrial wood species including non wood plants for production of adhesives . Bamboo production and processing into various wood and wood products including furniture, plywood, etc . Others A number of other investment opportunities exist in the wood and wood products sector. For example, a large volume of inert non-metallic minerals is used as extenders and fillers for glue reconstituted for the production of plywood and flush doors. For many years, China clay was imported into this country for this purpose. The purposes of the extenders and fillers are to cheapen the glue and to extend the closed assembly time of the plywood or flush doors. This function has been effectively performed by kaolin which is locally available in commercial quantities. In some cases where the kaolin originates from highly acidic sources with pH values of 3 to 4 the use of such kaolin has eliminated the need to add hardeners to the glue. Kaolin reserves in Nigeria have been estimated at more than 10 million tonnes. It is therefore possible to mine and beneficiate kaolin for use by the industries in this sector. In addition, coconut shell flour or olive stone flour is used in some mills as extenders of phenolic resins. Although, these fillers are currently imported they can be produced locally. 11.11 Research and Development Activities in the Sector In view of the peculiar nature of this sector occasioned by the dwindling availability of the major raw materials such as wood and adhesives, research development in wood products sector should embrace the following:

- Development and popularization of uses of less known wood species in the country’s vast forest-resources, particularly those trees that have potentials to attain over 30cm diameter.

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- The development of local sources of raw materials for adhesives and other essential

substances used in the wood industry which are not at the moment locally produced.

- Improvement of the conversion efficiency of wood processing technology and recycling of the tremendous wood wastes from mills for useful products such as particle board briquettes machined products and production of.

- Extension of cultivation of resilient wood species for industrial uses to areas outside the

traditional forest zones, preferably under agro-forestry ecosystem.

- Development of improved gum tapping techniques for sustainable exploitation of the gum tree species for use in adhesives preparation.

- Adapting equipment and technology for primary processing of logs that are below

conventional loggable dimension.

- Development of goal-oriented forest management methods with a view to meeting specific objectives with regards to local raw materials requirements. At the moment, Nigeria is largely, reliant on wild forest species and very few man-made plantations.

- Awareness creation on the usefulness of valuable, but currently little exploited, forest

species such as rattan oil palm wood in the south and betel in the north, respectively. Popularisation of the use of the verous bamboo species encouraging locally has also been imperative.

- Development of local substitutes for imported materials critical in the wood and wood

products sector by encouraging would-be investors to invest in such areas as production of mineral extenders and fillers for glue for use in plywood and and olive stone flours as extenders of phenolic resins.

Current Research and Development activities in the sector and their status are show in the Table 11.4. It can be observed from the table that emphasis is placed on development of adhesives locally in view of the high cost of imported ones. RMRDC has pioneered the local design and fabrication of wood seasoning kilns by a private engineering company. The fabricated kilns have been tested and are currently undergoing calibration. Table 11.1: Research and Development Activities in Nigeria

S/No. Research and Development Organisation

Innovation/Discovery Status

1. African timber & plywood (AT&P) Sapele in collaboration with A.B.U Zaria

Development of Tannin formaldehyde adhesive Accomplished

2. AT&P in collaboration with ABU, Zaria Development of gum-arabic adhesive for uses in particle Board & fibre board products.

At advanced stage

3. Savanna Research sub-station of FRIN, Silviculture and plantation management techniques of Silvicultural practice

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11.12 Machinery and Equipment Required in the Sector A host of machinery and equipment are required in the various subsectors within the sector. In general, the following machineries are required in the following subsectors:

Samaru, Zaria Gum-arabic for small-scale/plants management developed

4. Organic chemical Industries Ltd (OCIL), Ifo

Local sourcing of Urea Formaldehyde resin. The OCIL supplies of the UFR in thousand tonnes to AT&P Sapele

5. Ahmadu Bello University, Zaria & University of Ibadan

Development of starch dextrins from maize cobs and recycling of rubber

On-going

6. Forestry research Inst. Of Nigeria (FRIN) Ibadan

Production of wood-wood slab, cement-bonded particle board, Sawdust-cement-ceiling board, floor, wall tiles & roofing sheets.

Tremendous progress made in the areas.

7. University of Ibadan, Ibadan Production of extenders for Phenol formaldehyde from coconut/Kernel shells & maize cobs to replace the currently imported coconut shell floor.

Research is in progress.

8. University of Ibadan, and Energy Research

Development of machine for designed & fabricated briquettes from wood waste.

The machine has been producing wood briquettes

9. Raw Materials research and Development Council (RMRDC) in collaboration with Usmanu Danfodiyo University (UDU), Sokoto

Establishment of Gum Arabic (Acacia, senegal; A. seyel) plantation for sustainable gum production

The project took off in early 1997.

10. Michael Okpara University, Umudike Conservation & Multiplication of endangered spp On-going

11. Fed. University of Technology, Yola Impact of community participation in forestation in Sudan Savannah

Proposal

12. Cross River University of Technology, Calabar

Design & construction of Sola heated kiln for wood drying

On-going

13. Raw Materials Research and Development Council, Abuja

Design and Fabrication of wood seasoning kilns Completed. Kilns undergoing calibration prior to commercialisation.

14 Cross River University of Technology, Uyo

Design and contribution of a charcoal conversion equipment using waste as raw material

On-going

15 Fed. Univ. of Technology, Akure Inventory Techniques and models for Spp diversity and yield assessment of lowland rainforest of S.W Nigeria Evaluation of the contribution of non timber forest products to household economy in the rural communities in S.W. Nigeria. Strength and dimensional stability of cement bonded flake board produced from Gmelina

Completed On-going On-going

16 Yobe state College of Agriculture, Gusba, Damaturu

Effect of pretreatment on germination of Faibherbia oibidei (Gawo) Effect of seed size on germination and productivity of Acacia Senegal

Completed On-going

17 FRIN, Umuahia Local community participation in farm forestry and shelter belt scheme for combacting in S.E. Agro-forestry as a veritable tool for poverty eradication and conflict resolution.

Completed Completed.

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Sawmills

1. CD-6 Headrig machines 2. Circular headrig machine 3. Circular risaw cuts 4. Saw doctoring equipment (workshop) 5. Log pond storage chamber 6. Crane 7. Saw of various grades.

The process technology used in the country’s sawmills is labour intensive. Truck loads of hand logs are manually offloaded into horizontal and vertical band saws of the CD-45 and CD 65 models which are powered by electricity. Logs are rolled manually to the sawing rigs and sawn using the so called through and through technique of log conversion into planks. The sawn planks are removed manually. The technology is however suitable for conversion of large diameter logs (LDL) which are becoming scarce in Nigerian forests as a result of over exploitation. The sawmill industry in Nigeria waste up to 50% of the wood it converts as a result of obsolete logging technology and equipment. Again, spare parts for the machinery are imported and therefore expensive. This latter reason has forced a number of sawmills, especially, small scale ones to fold up. Furniture Workshops The basic equipment utilized here are:

- Circular saws - Tenoning machine - Band saws - Molding machines - Thicknessing machine - Drilling machine - Cross cut saws - Hard tools.

Veneer and Plywood production

Plywood production requires a good log, called a peeler, which is generally straighter and larger in diameter than one required for processing into dimensioned lumber by a sawmill. The log is peeled into sheets of veneer which are then cut to the desired dimensions, dried, patched, glued together and then baked in a press at 140 °C (280 °F) and 19 MPa (2800 psi) to form the plywood panel. The panel can then be patched, resized, sanded or otherwise refinished, depending on the market for which it is intended

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The basic equipment utilized here are: Veneers: Stackers Unstackers Feeders Make up/ reentry feeders Regrade lines Fish tail saws Fish tail stackers Dry landing tables 90 Degree Corners Drop corners Scan tables Hybrid random stackers Plywood Sheet Feeders Tray Systems Stackers Line up trays Particle board production Drum Chipper Sending wind system Thick pieces wet silo Rotor dryer Ringy mix glue set Conveyor Spreading and Loading Machine Pre pressin Machine Loadind and Unloading Machine Hot Press Unloading Board in Transporter Cool Press Longitudinal Saw Transverse feeding board machine 11.13 Conclusion The drastic reduction in forest estate in Nigeria from 9% in the 60’s to less than 6% in 80’s has made enterprises in wood processing no longer as lucrative as before. While the sawmill industry in the country has faced the challenge by resulting to conversion of lesser diameter logs and lesser known wood species, the response of most of the wood based panel industries

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had been to close down operation. Although absence of prime wood species is not the only reason for the closure of wood based panel industries, their dependence on high quality logs of adequate diameter in view of the process technology mostly adopted leave most of them with no option. The furniture industry on the other hand has responded to this threat by extending their operations to utilize lesser known wood species. As the plywood industry is diminishing, the panel sector is now gradually substituting reconstituted wood panel for plywood, and, to conserve the diminishing resource base, greater emphasis is now placed on the use of smaller diameter logs. The process has the effect of reducing overall viability and confidence in reliability of the materials. The operation technology adopted by most of the industries in the sector is still highly manual and labour intensive. The technology calls for improvement. Analysed records show that approximately 90% of the operation and technology used in the sector are small scale in nature and only about 10% are engaged in heavy operation using improved technology. The industries have refused to move with global advancement in technology. Production in the sector has greatly dwindled because of obsolete and outdated equipment and machinery which leads to enormous wastages. While tertiary institutions and research institutes including private sector outfits have shown interest in executing and promoting R&D activities that will ensure mass production of planting materials for aforestation purposes, lack of funds and government attention continue to militate against progress. Funds release for R&D activities in mandated research institutes and tertiary institutions are at best described as drop of water in the ocean. This to a large extent has stalled research into biotechnology and the engineering of mass production of planting materials. Consequently gestation period continue to be high, thereby, stalling private sector interest in plantation establishment of economic wood species. Despite the above, a number of investment opportunities still exist in the sector. This can take the form of production reconstituted wood products, adhesives from local wood species, etc. Also private sector investment in bamboo production and processing, will, to a reasonable extent, solve some of the raw materials problems facing the sector. Table 11.2 Major Raw Materials Utilized in the Sector Raw Materials: A. Wood and allied materials Sawmill

Plymill Particle board Poles Matches Toothpick/medicare Logs

B. Adhesives Phenol formaldehyde

D. Overlay Formica Decorative paper Paper foil Kraft paper Melamine overlay E. Fittings Staple pins Tack nails Hinges Springs

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Urea formaldehyde Polyvinyl acetate (PVA) glue Holt melt Glue thread Urea Phenol Hexamine Caustic Soda Ammonium Chloride/Sulphate Kaolin (China clay) Melamine Formaldehyde Coconut shell flour Paraformaldehyde

C. Chemical for Match-making and Furniture Phosphorous Zinc oxide Manganese dioxide Putty Stains

Sealers Inks Pains Varnishes Thinners Fungicides Insecticides Fire retardants Water proofing Ammonium phosphate Ammonium sulphate Shrink film Brown premix Sulphur powder Potato/cassava starch Talcum powder Ammonia Antifoarm

Plastic banners Angel iron Metal fasteners Handles Keys and locks Nails Bolts and nuts Glass mirror Castors Base metal F. Fabrics, Foam and Upholstery Textiles Threads Webbings Foam Sand paper Calico Energy cloth Foam Leather G. Wood finishes Putty Waterproofing Lacquers Ink Varnishes Thinners Stains Sealers Paints Latex Fire retardants Fungicides/insecticide

Table 11.3 RAW MATERIALS AND INDUSTRIES

ITEMS RAW MATERIALS WOOD PRODUCT SUB-SECTOR

SAW MILL WOOD BASED PANEL

FURNITURE

1. Logs X

2 Timber/Lumber X

3 Carved/Turned wood X

4 Veneer X X

5 Plywood X X

6 Particle board X X

7 Laminated/bittern board X X

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8 Hoard board X X

9 Black board X X

10 Decorative papers X X

11 Honeycomb paper X X

12 Craft paper X X

13 Paper foil X X

14 Saw dust X X

15 Melamine overlaps X X

ADHESIVES

16 Animal glue X

17 Casein glue X

18 Urea formaldelude X

19 Melamine formaldehye X

20 Resorcinol formaldehye X

21 Epoxy resins X

22 Polyvinyl acetate (PVA) X

23 Contact glues X

24 Glue thread X

25 Cement X

26 Ammonium chloride X

27 Hezamine X

28 Palm oil X

CHEMICALS

29 Stains X X

30 Lacquers X

31 Sealers X X

32 Paints X X

33 Varmshes X

34 Golatine X

35 Potassium chlorate X

36 Sulphur powder X

37 Zinc oxide X

38 Magnesium oxide X

39 Glass powder X

40 Chalk X X X

41 Latex X X

42 Putty X X

43 Thinners X X

44 Fungicides X X

45 Incecticides X X

46 Fire retardants X X

47 Pencil X X X

FITTINGS

48 Nails X X

49 Screws X X

50 Hinges X

51 Locks X

52 Cabinet catches X

53 Pulls and handles X

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Table 11.4 Wood Requirement of industries

Industry 2006 Installed cap Cap utilize

1996 I.c C.u

2003 I.c C.u.

Saw mills Furniture Wood based pands a.Plywood b.Particle based

21,146,053 6,732,857 - - 572,051 121,218 85,500 52,600

10,900,000 4 ,200,000 - - 530,600 216,397 77,500 54,600

14,684,000 5,177,700

- - 149,500 36,750 67,150 14,900

Table 11.5: Geographical Distribution of Forest Lands and Timber Stocking in Nigeria: 1988

Forest Types Permanent Natural Forest (ha)

Estimated Volume (‘000m3) of wood species Now in Use From Natural Forest 60cm 40cm 30cm (Cutting Diameter Limits)

Estimated wood volume from Plantation (‘000m3)

Grand Total volume (‘000m3) of wood species now in Use (Natural Forest & Plantations) 60cm 40cm 30cm (Cutting Diameter Limits)

Potential Useable Volume Down to 30cm (cutting diam. Limit)

A. Swamp Rivers Lagos Sub Total

3,500 153,433 156,933

23 10,141 10,164

35 14,328 14,361

37 16,356 16,393

26 74 100

40 10,215 10,264

59 14,402 14,461

63 16,430 16,493

49 21,808 21,857

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B. RAIN

Akwa ibom Anambra Enugu Ebonyi Edo Ekiti Delta Cross River Imo Abia Ogun Ondo Oyo Osun

31,857 32,868

9,006 3,120

565,035 147,051

35,953 639,499

1,557 9,122

280,983 342,712 341,230

86,133

2,616 1,980

720 720

38,267 236

6,321 38,410

260 1,245

18,456 2,841

38,431 9,231

3,810 2,700

930 325

57,315 18,400

7,236 54,615

331 1,321

25,588 30,819 46,128 15,017

3,291 2,677

979 181

59,239 13,940

8,931 61.814

906 1,400

29,168 35,214 63,251 17,210

102 621 250

1.099 91

731 98

1,012 405 920

1,889 2,114

857 350

2,763 2,766

996 945

41,009 15,300

5,246 39,602

274 932

19,881 23,865 37,476 12,131

3,197 3,631 1,200

54,621 271

8,312 55,456

9,460 434

1,201 27,352 32,875 48,118 16,126

3,529 3,559 1,200

64,392 122

9,321 22,87

62,715 269

1,100 30,972 37,226 66,301 18,321

4,631 3,713 1,345

240 60.290

7,969 31,465 82,456

429 1,431

38,877 46,927 78,120 24,311

Sub-total

2,526,126 159,734 264,535 298,217 11,521 203,185 262,254 321,898 406,261

C. Savanna

Gombe

Abuja Bauchi Benue Kogi Adamawa Taraba Kaduna Kwara Niger Plateau Nasarawa Zamfara

27,101 10,914

817,580 60,325

481,486 151,687

1,162,747 660,807 575,687 756,037 370,333 321,460

89,620

102 1,023

10,210 2,224

19,321 7,234

12,001 49,702

9,012 4,450 5,103

865 2,694

217 1,398

14,210 3,148

29,251 8,353

17,200 70,202 17,192

6,253 7,382 9541

589

340 1,621

16,218 3,148

33,211 10,187 28,211 80,231 18,492

7,183 9,121

10,450 268

82 1,929 1,039 2,225 6,331

143 3,211

229 384 299 510 710 571

171 1,069

18,214 2,769

21,100 3,281

18,128 37,884 16,824

4,725 5,481 8,210

890

263 1,492

14,408 3,936

29,133 8,306

26,221 70,418 23,591

6,559 7,481 5,180 1,750

309 1,724

16,387 3,939

32,031 11,831 31.210 81.267 26,982

7,389 8,457 9,267 1,986

72 2169

16,609 4,821

41.212 18,243 52,490 90.003 37,395

9,467 10,895 11,340

568

Sub- Total

5,486,230 123,869 184,936 219,119 17,663 132,746 198,238 222,779 304,233

D Sahelian

Borno

Yobe Kano Jigawa Katsina Sokoto Kebbi

314,154 386,710

72,360 97,732

321,666 471,890 307,676

75 68 40 52

100 1,283

-

94 98 46 63

132 1,608

-

134 152

56 79

153 1,923

-

45 48

326 267

63 382 361

140 162 264 310 140

1,092 652

164 182 238 321 164

2,003 721

142 193 235 346 192

2,036 821

143 162

87 98

210 2,007

931

Sub-total

1,972,195 1,624 2,038 2,497 1,402 2,760 3,843 3,965 3,620

191

TOTAL

10,076,988 295908 466,184 536,784 30,819 349,191 479,428 565,908 677,656

Table 11.6 OVERLAY REQUIREMENT Raw Material 1996 2003 2007 Inst. current inst. Current installed Current Farnica (rolls) 15,610 4,769.5 15,924.6 9,776.7 Melamine over Lays c.(sheets) - - 373.17 297.368 Decorative paper 17,425 6,881 tons 11,249 5950 Kraft paper 6.587 tonnes 3,481 tonnes 3,754.2 872.5 Paper foil (sheets) - - 1,329.4 872

Table 11.7 KAOLIN OCCURRENCE AND DEPOSITS IN NIGERIA

S/No DEPOSIT/LOCATION STATE RESERVES IN MILLION (Tonnes)

1. Enugu Enugu 50.0

2. Ozubulu Anambra 14.2

3. Darozo Bauchi 12.8

4. Mafuta Plateau 6.0

5. Werram Plateau 6.0

6. Maraba-Rido Kebbi 5.5

7. Umuahia Abia 5.0

8. Okpekpe (Auchi) Edo 3.0

9. Ibusa Delta 3.0

10. Kankara Kstsina 3.4

11. Ibere Imo 2.0

12. Giru Kebbi 2.0

13. Tade Oyo 1.50

14. Nsu Enugu 1.2

15. Imope Ogun 1.0

16. Onibode Kogi 0.81

17. Major Porter Plateau 0.7

18. Iilo Kebbi Very large

19. Lisabi Ogun Very large

20. Ifon Ondo Large

21. Oslupe Ogun Small

22. Ilefun Hill Meko Ogun Small

23. Kaoje Kebbi Not determined

24. Kamba Kebbi Ditto

25. Koko Kebbi Ditto

26. Kwakwaba Kebbi Ditto

27. Dawakin Tofa Kano Ditto

28. Ubulu-Uku Delta Ditto

29. Kwali F.C.T. Ditto

192

11.3 Recommendations

1. A comprehensive survey of wood availability in Nigeria has become imperative. This will inform policy makers on the extent of deforestation in the country. The information obtained should be used to develop sustainable programme for wood production locally.

2. The stampage rate used currently is too low. It gives phenomenal advantages interms

of profit to sawmiller and invading politicians at the expense of highly gestation period of wood development/growth.

3. There is need for a sustainable programme for the development and utilization of bamboo in the sector. Bamboo products from Asia compete favourably with products from solid wood all over the world.

4. There is need for government intervention on the resoucitation of pioneer industries such as AT&P, NIROWI, etc. privatisation of these companies will help resourcitate production of wood based panels locally.

5. There is critical need for government to embark on promoting private sector investment in plantation establishment. All over the world, governments are putting policies in place to encourage private sector participation in establishment of indigenous economic wood species.

6. The funding of Forestry Research is currently at its lowest ebb without adequate funding and motivations, proffaries will continue to look for greener pasture. There is need to improved activities in the areas of forest genesis, development of high yielding forest growing tree species, etc.