Connect with us

Advice

Best Places for Your Manufacturing Businesses in Nigeria

Published

on

Generally speaking, manufacturing entails the processing of specific raw (input) materials into desired finished products (output). Manufacturing businesses in Nigeria include, but are not limited to agro-allied products; water- based products (e.g. sachet water, bottle water, or ice block production); electrical installations; steel-based products (such as building materials, kitchen utensils, etc.); drugs production; plastics and chemicals; ICT-based industries, etc. The list of available ideas for manufacturing businesses is long.

So, are you interested in starting a manufacturing business in Nigeria and you are concerned about the best place to site your manufacturing business? In this article, I give you the best places for your manufacturing businesses across the nation.

Factors to Consider in Choosing a Vantage Location For Your Manufacturing Businesses in Nigeria

But before I delve into that, let me show you some of the general factors to consider in choosing a vantage location for your manufacturing businesses in Nigeria and anywhere else.

  • Population Density of the Location

As the purpose of production is to get goods across to those who need them, it is reasonable that intending manufacturers site their industries close to, or within areas of high population density. This would cut transportation cost to an extent.

  • Road Accessibility

In the event where the industry is cited close to the expected market, rather than within it, the roads which lead to the manufacturing site should be potable enough to smoothen the transportation of goods.

  • Security

Insecurity drives not just people (who are potential customers) from a region; it also deters potential investors from the region. So, while choosing a location for your manufacturing businesses, ensure that the location is relatively safe, in fact, safer than other places. This should come top while making your business establishment decisions.

  • Other Factors

What I refer here to as “Other Factors” here include factors like the receptivity of the environment and local/state government to your manufacturing businesses. You can know this by checking the history of factories situated in the area, those that left, and those that were not allowed to cite in the past.

Also, you should look out for the favorable-ness of the environmental conditions of the area, the availability of raw materials, etc.

Manufacturing Businesses in Nigeria

Manufacturing Businesses in Nigeria

Now, here are best states to site your manufacturing businesses. These locations/states feature at least one of the general factors to consider in choosing a vantage location for your manufacturing businesses in Nigeria.

9 Best Places For Manufacturing Businesses in Nigeria

(1) ABIA STATE

Abia is a South-Eastern state in Nigeria. Formed in 1991, Abia state is home to the infamous Aba, an industrial hub. The population of Aba is more than 839,000. The presence of Aba in Abia state puts Abia forward into the ranks of states favorable for sitting manufacturing businesses in Nigeria. Currently, Abia state generates about 2 % of Nigeria’s Gross Domestic Product (GDP).

Manufacturing activities already existing in Abia include: palm oil production, cola nuts, textile, cosmetics, etc. With a large agricultural-based economy, more than two-thirds of Abia residents work in the agro-based industries.

(2) KANO STATE

Bordered by Kaduna, Katsina, Bauchi and Jigawa states, Kano state is the commercial hub of the northern part of the country. It is also said to be Nigeria’s most populous state. Kano state hosts more than a hundred factories which are into the production of agriculture – based products, as well as other form of products including; food and drinks, pharmaceutical, tanning, textile and vegetable oil production.

Kano has several tourist attractions which further help its market base.

(3) OSUN STATE

Next on our list is Osun State. Osun state is situated in South Western Nigeria, and is home to the ancient city of Ile Ife. It has a large coca industrial base which already turns out more than twenty thousand tons of cocoa every single day.

Prospects for chemical based industries also exist abundantly in the state, as chemical based industries are already seen to be flourishing in Osun State.

(4) AKWA IBOM STATE

Akwa Ibom is located in Nigeria’s “South- South” region. It is a top tourist destination in the country.’ Akwa Ibom has a population of more than five million residents (by 2006 census). The state, which sits different chemical – based factories, is in the Niger Delta region and produces some of the largest oil and gas products in Nigeria.

Akwa Ibom is one of the states you might want to consider if you’re considering a location for your manufacturing business.

(5) RIVERS STATE

Rivers state is one of the most vantage states to site a manufacturing industry in the country. Its capital city of Port Harcourt is one of Nigeria’s prominent cities. Rivers state produces more than 60% of Nigeria’s crude oil products. This predisposes the state as a good centre for petrochemical based industries. The sixth most populous state in the country, Rivers also doubles as a major tourist centre in the country, giving it a larger market base.

(6) OYO STATE

One of Nigeria’s most industrialized state, Oyo state hosts one of the nation’s biggest tobacco producing factories. Oyo is the fifth most populous state in Nigeria. Its state capital, Ibadan, is the third most populous city in Nigeria. Oyo state has a large agriculture base, with a rich rain forest for the cultivation of cocoa, rubber, as well as other cash crops. Ibadan, the capital city is not only populous, but also has a large expanse of land. This gives a viable leverage to companies which would not have to expend high transport costs before getting to their desired market.

(7) OGUN STATE

Surely, the list of places best suited to locate your manufacturing businesses in Nigeria could not be completed without this state. Also known as the Gateway State (due to its large border line towards Benin Republic), it is already one of the states hosting a high number of manufacturing industries in Nigeria. One of the strong selling points of Ogun is its proximity to Lagos state. The state government also has manufacturing industry-friendly policies.

Manufacturing industries already thriving in the state include ceramic, beverage, electrical installations, food companies, etc. With industrial estates existing in places such as Ota, Sagamu, and Lagos-Ibadan expressway, Ogun state is surely a favorable stated for manufacturing hubs in Nigeria.

(8) ANAMBRA STATE

Anambra is part of the Niger Delta region of Nigeria. Its state capital, Awka, hosts a highly productive oil and gas exploration base in Nigeria.

Home to Nnewi, known for its large vehicle spare parts market, Anambra hosts Nigeria’s first indigenous car assembly plant, INNOSON. These make Anambra a promising location for intending auto mobile based manufacturing startups.

Combining these with large natural resource base of oil and gas, ceramic, and bauxite, Anambra is promising for investors wishing to go into manufacturing businesses.

(9) LAGOS STATE

Finally, we can’t end this list without the Centre of Excellence, Lagos state. Lagos is the country’s most widely known city, and is at the peak of industrial and commercial activities in Nigeria. Home to international sea and air ports, Lagos is the highest generator of IGR, as well as contributor to Nigeria’s GDP.

The large population of Lagos state; its closeness to sea and air ports; and the business – favoring disposition of the state government over time; predisposes it any day any time an inviting location for manufacturing businesses.

Conclusion

The areas I have examined in this article at arguably the best places to situate your manufacturing business in Nigeria. It is, as stated earlier in this article, wise to study the prospective location for your manufacturing business with respect to your peculiar business situations. This will help you to avoid negative situations you never bargained for if you did a proper homework from the outset.

Comments

comments

Ekemini Ekpo is a professional writer, blogger, and internet marketer. He is passionate about engineering, business, investment, entrepreneurship, finance, and personal development. When he is not managing web projects, he handles academic research writing and data analysis for individuals and organizations.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advice

A Brief Analysis Of The Nigerian Paint Industry

Published

on

For decades, Paint manufacturing companies have long been in operation in Nigeria, mostly as subsidiaries of foreign paint companies. As time passed, however, indigenous paint industries sprung up and completely bought over the shares of these foreign firms and continued to expand with every passing year. Several technological advancements have been witnessed since then, with the Nigerian paints industry contributing a significant quota to Nigeria’s economy and employment scheme.

The existence of paint manufacturing companies in Nigeria dates back to as early as the nineteen sixties. Recently, there has been a high demand for paint due to the increase in construction of buildings for private and commercial purposes. This factors thus makes the paint industry a profitable one to invest in.

An Analysis of the Nigerian paints industry

A Brief Analysis Of The Nigerian Paint Industry

A Brief Analysis Of The Nigerian Paint Industry

It has been estimated that the about 128 million litres of paints are consumed in Nigeria within a year. In the year 2012 alone, the Nigerian paints and coatings industry was estimated to be worth about $200m. this grew to about $218m by 2013, signifying an estimated 9.01% growth rate.

There are two major components of the Nigerian paints market. Lack of sufficient access to funds and technical imbalances needed for the production and management of industrial coatings constitutes a major yardstick for distinguishing between the industry players. The first sector is the organized sector which comprises of companies possessing sufficient capital and efficient distribution system.

The second sector is the decorative paint sector, which houses both the organized and unorganized players. This component does not need advanced technological inputs. With a good governmental backing, it is quite easy for new entrants into the Nigerian paint market to thrive in the system.

This sector is dominated by about 5 key companies, each of which’s annual revenue is estimated to exceed $7m, with several other small and medium-scale companies scattered across the country.

So, as it stands, the decorative sector of the Nigerian paints industry accounts for about 60% of the total sales volume and/or value. The industrial coatings segment of the market, on the other hand, is said to constitute about 40% of the total sales volume and 29% of total production volume.

As Frost & Sullivan report, in 2012, the decorative paints & coatings sector of the Nigerian paints industry was said to possess a significant synergy with the real estate industry and estimated at 71% of the overall volume of coatings and pains in the country.

Nigerian paint industry Regulatory Bodies and Associations

The regulatory body for the paint industry in Nigeria is the standard organization of Nigeria (SON).

They are entrusted with the responsibility of ensuring that all manufacturing industries in Nigeria are duly certified, their products are safe and guarantee maximum consumer satisfaction through compliance with government policies.

SON encourages healthy competition amongst manufacturers and also give room for continuous improvement on quality of manufactured products.

Paint Industry Manufacturers Association of Nigeria (PMA)

Asides SON, another regulatory body in the paint industry is the PMA. PMA caters to the welfare of the Nigerian paint industry. It is headed by a chairman and serves as a voice as well as a monitoring body for paint manufacturers in Nigeria.

PMA caters generally for issues bothering on productivity and development of the industry. In 2016, an exhibition was commenced which now holds yearly.

The exhibition which is centered on annual raw materials, equipment and painting show held on the 23rd of October and was tagged “PMA Nigeria Coating Show”.

The event had exhibitors from the United Kingdom, Germany, Greece, Turkey, South Africa and India in attendance. The major aim of the exhibition is to develop strategies on how to handle the issue of high cost and scarcity of raw materials for local production which is a major challenge faced in the industry and to promote paint Technology by sourcing for local contents.

PMA (Paints manufacturers association of Nigeria) functions collectively with SON (standard Organization of Nigeria) to guarantee an acceptable global quality standard for manufactured products.

Challenges and Prospects of the Nigerian Paint Industry

These include:

1)     NEGLECT BY THE GOVERNMENT

The paint industry is one of the most neglected in Nigeria. There are no incentives provided and routine checks are not always carried out. This, in turn, puts a restriction on the percentage of the paint industry’s contribution to the gross domestic product of the country.

Also, the lack of an efficient regulatory system increases the emergence of new industries which lead to a decline in the standard of products manufactured.

2)     ACCESS TO FACILITIES

This can be said to be a major limitation for investors in the industry. These facilities include: constant power supply, access to funding, unavailability of raw materials, lack of proper facilities for certification and test purposes.

Prospects of the Nigerian Paint industry.

These include:

1)     QUALITY CONTROL

Due to the effort of the Paint Manufacturers Association of Nigeria and the standard organization of Nigeria, the quality of paint produced has improved tremendously.

2)     HIGH DEMAND

The increase in demand for paints is as a result of the increase in building construction in the country which has also helped the sustenance of the industry.

LIST OF PAINT INDUSTRIES IN NIGERIA

Paint industries in Nigeria include:

  1. Premium paints,
  2. Dulux Paints,
  3. Meyer paints, Berger paints,
  4. IPWA,
  5. Nigerian German Chemicals,
  6. African Paints
  7. CAP Plc.

I hope we have made your search complete.

Comments

comments

Continue Reading

Advice

How to Pitch Your Idea to Investors in Nigeria

Published

on

Are you an entrepreneur in Nigeria with a business idea that you want to pitch to investors? But you don’t have the finance to invest in the business and the only option left is to look for investors in Nigeria who would love to invest? Read this simplified guide to learn how to pitch your idea to investors in Nigeria in a professional way.

You see, Nigeria is a country with many people with money that don’t know what to do with it. A large chunk of these people will be very happy to invest their money in places that will bring them maximum profits or a good return on their investment. Having the opportunity to meet this class of people (i.e., angel investors) to share your business idea with is one problem.

Here’s what you should know…

You see, it is one thing to have a good business idea, but a completely different thing to know how to pitch it to potential investors. You need the skills of how to convince potential investors within minutes to invest in you, because if you don’t know how to do it professionally, investors won’t be able to understand what you’re trying to relate with them or how best to help you.

The importance of rehearsing your pitch is one thing I can’t stress enough in pitching potential investors in Nigeria. As an entrepreneur, you might think that you know your business in and out, and that when it comes to pitching it to investors, it will be easy just like singing the National anthem (is that even easy?). Well, this is not always the case most times. Cases abound where entrepreneurs freeze in front of investors while pitching, and ramble on and on. Many entrepreneurs don’t put the same effort they used in preparing their business plan to pitching their plan to investors. As such, you should take the time to acquire the needed skills of business idea pitching to pitch your business idea to investors in Nigeria with ease.

How to Pitch Your Idea to Investors in Nigeria

How to Pitch Your Idea to Investors in Nigeria

How to Pitch your Idea to Investors in Nigeria.

1. Start with a story, end with your solution

If you can relate your story to the problem you are solving in the market place, then do it. Nothing engages people better than a good captivating story. Start your pitch with a story that will catch your audience or investor’s attention, the complaint and address it to how your business idea will be the solution to the problem in your story.

So, don’t just keep talking about the problems all day, pitch your idea by showing potential investors how your product or service will solve the hungry market’s problem. Make it easy for the investor to understand how you plan to execute the solution with your idea.

2. Niche down to the exact market you are targeting.

Every product, service or business idea has a specific market it is made for. Don’t lie to investors saying that your product or services is for everybody on earth. It is too broad. Everybody is no market. Tell your investors the market needs your idea is meeting.

3. Analyze Your competitors

A quick analyses of your potential competitors is very important as every business has a competitor even if the competitor is located far away in another continent. Tell the investors how different your business model or approach to solving the problem is from that of your competitors and how much market share you are likely to take if your idea comes to the limelight through their support.

4. State the exact amount you need

Don’t beat around the bush about the exact amount of money you need to fund this idea. Tell investors the exact amount of money that will be required to fund the business idea to success, as well as how much have been invested (if any). Also, give a detailed breakdown of why you need the exact amount you have stated and the intended outcome of the money too. You can do this using slides, charts, tables, diagrams, etc.

These are few tips to know on how you can pitch a business idea to investors in Nigeria. I hope with this  information, you have gained clarity on how you can pitch your idea to investors in Nigeria. Go ahead and put it into practice.

If you have any questions on this topic or a related on, let me know in the comments box below.

Comments

comments

Continue Reading

Advice

5 Ways to Spot Exceptional Employees in Nigeria

Published

on

The Nigerian labor market is very flexible with a skilled, low labor cost, highly motivated, and productive workforce. High level of education and efficiency are common factors for spotting exceptional employees. Besides, exceptional employees are easily self-motivated and self-managed.

Another important factor used for distinguishing an exceptional employee is the personality of the employee. This informs why some people are more successful at work than others? Travis Bradberry of Forbes magazine stated that following a research done around 2016, it was concluded that the key to exceptional performance is in the personality of the employee. Bradbery (2016) stated that the results indicate that “78% of leaders consider that personality distinguishes great employees, much more than cultural adjustment with 53% and even the skills of an employee (39%)”.

However, the qualities that the leaders pointed out as part of the personality are those of emotional intelligence. Unlike personality (which never changes), emotional intelligence can be transformed and improved. So executives don’t need to look for employees who have these skills. His duty, and also that of the company, is to help the entire team to enhance their emotional intelligence to become exceptional.

In essence, a typical team does all of its planning to achieve goals, with minimal intervention from management. Exceptional employees are also known to be healthily self-critical, with a willingness to learn and a commitment to making improvements both in production and performance.

It is clear, therefore, that the key indicators of exceptional employee are high level of education, efficiency at work, self-motivation, self-management, great personality, and emotional intelligence.

However, how can we see these playing out to determine how exceptional an employee? How does one spot the level of education, efficiency at work, self-motivation, self-management, great personality, or emotional intelligence of an employee? It is by observing if the employee has the following characteristics before and after employment.

Exceptional Employees in Nigeria

Spotting Exceptional Employees in Nigeria

5 Ways To Spot An Exceptional Employee.

 Exceptional employees may be spotted using the 5 indicators below:

(1) The Employee Is Willing To Delay Gratification.

Exceptional employees work outside the range of job descriptions. Rather than expect recognition or compensation to come first, they move forward in their work, confident that they will be rewarded later, but they don’t worry if they aren’t.

(2) Exceptional Employees Tolerate Conflict.

While exceptional employees don’t seek conflict, they don’t run from it either. They can maintain their composure while presenting their positions calmly and logically.

(3) Exceptional Employees Are Focused.

Exceptional employees are not distracted by grumpy customers or disputes in the office. Rather, they know how to detect the important issues and that is why they stay focused on what matters.

(4) An Exceptional Employee Is Judiciously Brave but Courteous

An exceptional employee is willing to speak up, ask a difficult embarrassing question, or challenge an executive decision. Besides, an exceptional employee chooses the best time to do act and thinks before speaking.

(5) Exceptional Employees Control Their Ego

While the ego is part of an exceptional employee’s drive to constantly improve, they never overdo it. An exceptional employee admits when he/she is wrong and agrees to do things differently with or without correction.

Becoming an exceptional employee is a skill, an art that can be learned and practiced to efficiency. One of the ways to become an exceptional employee is to establishing open and trustworthy lines of communication with the management and co-workers.

Besides, the Human Resources (HR) department has a role to play in the building of an average employee into an exceptional employee. Rather than dismiss below average or average employees, the Human Resources (HR) team can deploy technology to improve their integration with the entity’s values. In this sense, e-learning, for example, can have great value in developing courses that convey to that person what it means to work in that company and what it contributes to society.

Another mechanism that may be used to is improve an employee’s performance is proper mentoring, that is, involving some of the people with the best reputation and knowledge within the organization to protect and accompany the toxic worker, giving them advice and offering advice whenever they need it. In this way, individual attitudes can change, although care should be taken so that it does not in any way cloud the relationship between the company and the staff.

Comments

comments

Continue Reading

Trending