Vanguard
30 October 2008
The Nigerian Export Pro-motion Council (NEPC) has urged tobacco manufacturers in the country to diversify into other non-oil export businesses that can generate jobs, good profit and foreign exchange earnings.
They also said NEPC can initiate establishment of Industrial Parks in a Public/Private Partnership arrangement to help the small and medium enterprises ameliorate their challenges given the current state of infrastructure facilities. This could be taken as part of the tobacco sector's social responsibility to the Nigerian community.
"As more and more zones are being declared non-smoking, who knows perhaps sooner than later it will be a relatively 'non-smoking' global village," said the Acting General Manager, Mrs. Omowunmi Osibo.
In a keynote address during a workshop on 'Economic costs of illicit trade and Concession,' jointly organised by Commerce and Industry Correspondents Association of Nigeria (CICAN) and Initiatives for Public Policy Analysis (IPPA), in Lagos, Osibo said that tobacco companies can diversify into the following exportable products (agro-based, manufactured and services) as contained in the "Framework of National Export Strategy Document" for the Federal Republic of Nigeria 2005 - 2010" priority list for investment:
*Agro-industrial products (cassava, rubber, palm, spices and essential oils).She further stated that also included on the priority list, are service exports such as software developments and ICT support services, specialised consulting services (engineering, pharmacy, architectural, horticultural products, fish and fishery products; leather and leather products, electric cables, ceramics, handicrafts and other manufactured products with a minimum of 35-40 per cent local value addition.
Omowunmi, who spoke on 'Smuggling: Why Consumers Need Protection in the country', noted that apart from revenue loss to government as a result of smuggling, especially in counterfeit tobacco, noted that although NEPC does not support the use of tobacco, yet the health of our people are even at higher risk.
"When one compares the fact that even the tobacco that is produced by duly recognized bodies under current Good Manufacturing Practices coupled with current Good Laboratory Practices in terms of pronouncing quality of such cigarettes still pose health hazard," she said.
According to her, 80 per cent of tobacco sold in the country prior to the establishment of the British American Tobacco Company in Nigeria in 2001 was illicit.
"This could have translated to loss or revenue to government as well as having circulation of such products outside the radar of regulatory authorities. Though the danger may be worse if duly-recognized tobacco companies are off the scene as standard and more dangerous tobacco may increase in circulation again."
Investing in other non-oil export products by tobacco companies, she noted, will always be welcome and cheering news given the manifestation of the following realities about our dependence solely on oil:
*Oil is a depleting resource (its supply can not be guaranteed forever). It is a divine endowment (its quantity can not be increased neither can it be synthesized nor the natural deposits be increased by fertilizer. It will certainly finish one day).
*We do not have control over its pricing (as factors and pressure are beyond Nigeria's control and we cannot dictate world market price movements)
*Our refining capacities are too minimal *Hard-earned foreign exchange is used to import refined oil for domestic use (such funds that could be used to develop other sectors like the infrastructure facilities to step up our industrialization.
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