On the verge of completing its new $225m manufacturing facility in Lekki, Lagos, Chairman/CEO of Swisstrade Security Doors Nigeria Limited, Dr. Mike Ezeaju, expresses cautious optimism over President Bola Tinubu's reforms concerning the manufacturing sector. He shares some of the industry challenges and growth expectations with Louis Achi
Earlier this month, the federal government declared it has joined forces with the Manufacturers Association of Nigeria (MAN), which you're a member, to evolve an actionable roadmap and policy framework to refurbish the nation's manufacturing sector. What's your reading of this move?
Given the scope of what I would call the disruptive innovations this administration is incepting, this is a welcome policy statement coming from the presidency. We in the manufacturing sector should support it. While conceding that fundamental reforms always come with their challenges the world over, I would suggest the federal government should also invest additional thought in her sequencing of these reforms. This is because even the best reforms, if improperly sequenced, could unduly amplify destabilizing disruptions.
Could you be more specific...
Take, for instance, the impact of recent macroeconomic reforms, such as foreign exchange (FX) and Petroleum Motor Spirit (PMS) price adjustments, on businesses in the first quarter of this year. These adjustments had resulted in increased costs across various production aspects, including raw materials, logistics, working capital, inventory, and others. The current economic environment, characterised by higher credit costs and elevated business risks, has compelled companies, especially manufacturing entities, to streamline their operations to steer through these challenges. This could impact GDP growth projections.
But in my view, President Tinubu's decision to remove fuel subsidy was a necessary action to head-off national bankruptcy and reset the economy for growth, notwithstanding that it has caused difficulties and hardship for many Nigerians. Subsequent related adjustments speak to empathetic policy making.
I must also commend the President Tinubu-led administration for engaging MAN as well as other stakeholders to evolve a consensus on the economic model necessary to propel Nigeria's transformation over the next few decades to enable Nigeria exceed even the President's envisioned one trillion-dollar GDP economy. It is indisputable that the manufacturing sector is key in driving the nation's wealth, job creation, living standards, and revenue generation.
What is Swisstrade's business model?
Swisstrade Security Doors Limited is Africa's number one armored steel security door company with a total focus on quality. Our progression to the top in the armored steel door manufacturing niche flow from our careful data-based evaluation of the Nigerian and African market and strict fidelity to an uncompromising quality production process. These have configured our capacity to produce security doors of the highest quality in accordance with international standards.
Our operational principle of "Quality First" has been a guiding tool in our campaign for state-of-the-art technology in armored security door production that remains tightly knit, as we apply quality control system right from raw materials selection through all the stages of production and finally during delivery. This system enables us to avoid defects in any of our products. SWISSTRADE doors are certified by international quality and standards organizations from production through to assembling and delivery.
We have grown from strength to strength only by a continuous drive for constant improvement, assessment, and innovations. Therefore, through experience and unwavering tradition, we have gained market confidence and international recognition as we expand into new horizons. Our products stand out as the most preferred brands in homes, offices, banks, hotels, and parastatals.
Our facility houses several large-scale capacity production and assembly plants, supported by modern, sophisticated equipment and computer technology to aid our and production, which makes our doors of unrivaled on the continent. We have been in business for twenty-eight years and growing from strength to strength. Our clients have been our partners in progress, and we always prioritise their peculiar needs and interests.
What are some of the challenges in your business environment?
First, let me state clearly here that manufacturing is at the heart of industrialization. It is an inescapable road to sustainable and inclusive economic growth and human development. This is a period of significant economic disruptions globally. It is not only in Nigeria. But the central responsibility of leadership is to engage and overcome these challenges. I believe this is what is taking place in our country currently. We should stay the course.
Moving on, in my opinion, government's policy in supporting manufacturing, which by the way is partly the reason for creating the Bank of Industry (BOI), should be tweaked. I believe this crucial policy would have worked more effectively and efficiently if BOI will be redesigned and have more expertise to be able to loan directly to manufacturing companies - in a quicker and cheaper mode - thereby eliminating the unnecessary bottlenecks and further charges occurring with the current system of routing it through commercial banks.
Our biggest challenge has to do with unscrupulous business folks importing very inferior products and foisting them on the market. They are by so doing destroying the economy of Nigeria, as these doors do not last, and these importers hardly pay any tax.
They are just out there to make a profit at the expense of the people. Another challenge is the need for much enhanced government patronage. That will enable us to employ more Nigerians and stimulate the economy by enhancing more economic activity.
We understand SWISSTRADE is building a new facility at Lekki, Lagos...
Correct. It is actually a $225 million-dollar ultra-modern manufacturing facility. This brings me back to the necessity of tweaking BOI's funding engagement template. SWISSTRADE is actually solely funding this massive project. This total funding from our pockets without a single bank's involvement naturally puts enormous pressure on us. It's almost inconceivable. Imagine the employment boost this facility will provide and the impact it will also have on the nation's GDP.
We are looking at completing the project by the end of this year 2024. But it could have been completed a year earlier and would have been up and running with huge employment opportunities had it been we were supported initially by the bank.
And mind you, we not only produce for local consumption but also export directly to neighboring countries, such as Mali, Senegal, Ghana, Benin, Togo, Cameroon, et cetera. As we expand further, our impact on the economy of Nigeria will then even be greater.
What's happening on your corporate responsibility front?
Every responsible organization should not permit grass to grow under its feet on that front. Hence, our innate desire to meaningfully impact the growth of the Nigerian economy and enhance the wellbeing of its citizens has guided our corporate responsibility interventions.
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In Anambra, Awgbu town, for example, we constructed 3.7 kilometers of nylon-tarred, high-quality road at the cost of N368 million. The roads were so bad that market women and men fail to bring their products to market for sale. All the farmers find it difficult to bring their produce to market for sale. By fixing the road, the economy of the benefitting localities, the state and by extension that of Nigeria are being lifted.
We also constructed ultra-modern, very large school buildings, and have thus far awarded scholarships to 63 students - males and females. The beneficiaries are drawn from different parts of the country.
In Lagos State, we are also collaborating with the local police to provide them with some of their basic needs, such as refurbishment of operational vehicles and divisional office.
As the late sage Nelson Mandela once said, education is the only weapon with which to transform the world. So apart from the scholarships award that I mentioned, we have been promoting healthy competition and enthroning a culture of excellence by giving cash awards to the best students of schools, both private and government. The latest one we did is that of Chrisland Schools, in Lagos. We will, in the course of time, expand this to other parts of the country.
We also promote cleanliness and total friendliness of the environment. We play our bit by enhancing the national security through the employment opportunities we provide Nigerians from all the divides.
Very significantly, we do not regard Nigeria as a dumping ground by manufacturing sub-standard products. We naturally expect to do lots more for Nigeria going forward, especially when we complete the facility mentioned earlier.
