NIGALEX seeks government intervention to save multibillion naira local aluminum industry

The managing Director of Nigerian Aluminum Extrusions Limited (NIGALEX), Iyiola Ishola has identified hurdles against the growth of the multibillion naira local aluminum manufacturing sub sector and appealed to the federal government for immediate intervention to save the sector which employs over 2,500 employees.

Ishola who identified importation of low quality aluminum in the country by dealers in the face of scarce foreign exchange and the reliance on imported ingots by the industry due to the state of ALSCON, said implementation of local content policy was long overdue.

To assist the industry, he said there is the need for a holistic review of the current Common External Tariff(CET) with the aim of offering adequate protection to the local manufacturers.

“This approach should be to discourage the importation of any productwhere there is adequate capacity. With this in place, we should be able to conserve the scarce forex and reduce unemployment”, Ishola who was addressing some journalists in Lagos said.

He strongly believed that the existing aluminum companies in Nigeria have installed capacity to meet local demand with quality products better than
the imported aluminum, so “why do we waste the available foreign exchange in the face of dwindling oil prices”, he said.

According to him, the aggregate supply contribution of four major manufacturers accounts for only 40 percent while importers of Asian-aluminum profiles supply the remaining 60 percent of the aluminum consumption in Nigeria.

“The low pricing of these thin-gauged profiles must have accounted for the mass appeal in the market in spite of the inherent disadvantage of installing the profiles in buildings”.

He regretted that the increase in demand for the imported profiles even when consumers are unaware of the quality have, over the years, eroded the traditional market dominance and customer base of local manufacturers.

On the need to revive ALSCON, the aluminum manufacturing expert said this will conserve the foreign exchange on aluminium ingots importation which is estimated at one billion dollars annually. “It is necessary for government to bring back into operation ALSCON as soon as possible”, he pleaded.

The NIGALEX boss also unfolded a set of strategy to boost his company’s operation, reinforce its competitive edge and put the company on the greater path of profitability.

He explained that the company was currently on the next phase of its expansion drive, business growth and re-positioning for optimal performance.

“We have commenced strategic popularization of our value through effective partnering with the media to create the needed awareness for the company’s products. We are ready to increase production output through our installed capacity of 7, 5oo tonnage per annum and develop requisite channels to sell these outputs. We shall embark on effective logistical plans to enhance operation within the agreed date and time.

We are already investing heavily in human capital with a view to building the required capacity with renewable knowledge, skills and the right attitude that meet the requirements of modern production process”.

He promised that the company will pursue a progressive expansion of its market and “penetrate the market with our products as a gradual process of market dominance, diversify the company’s products to cater for the various consumption strata in our economy, upgrade the company’s production
equipment processes and control for enhanced global standard and initiate effective infrastructural development to ensure comfortable environment”
Ishola said.