The Federal Government has reiterated its commitment towards boosting foreign exchange (FX) earnings for Nigeria, as it inaugurated Systems House of Vitafoam Nigeria Plc’s subsidiary, Vitapur Nigeria Limited in Lagos.
The Government also assured manufacturers in Nigeria of enabling environment that will enhance their global competitiveness, especially through fiscal incentives.
In his keynote address at the inauguration of Vitapur Systems House, the Honourable Minister, Federal Ministry of Environment, Mohammad Abubakar explained that the project was designed to phase out Ozone Depleting Substances and mitigate climate change. Abubakar stated that technological innovation had potential to enhance Nigeria’s foreign exchange earnings among others.
“Availability of Ozonefriendly and Low Global Potential blowing agents in the production of rigid foam. Generation of foreign exchange for the country from export of Methyl formate and foreign exchange savings from local production. Building of local capacity in the formulation of Methyl formate-based systems and consequently generating employment and wealth. The Methyl formate systems will serve as source of raw material to ice making machine manufacturers. The project will lead to increased capacity utilization in enterprises that will be using the Methyl formate being produced by Vitapur”, said Abubakar.
Read also: Have stocks gained from Nigeria’s financial repression?
In his welcome address, Vitafoam’s Group Managing Director and Chief Executive Officer, Taiwo Adeniyi expressed optimism that the collaborative efforts of the government through its agencies such as United Nations Development Programme (UNDP) and United Nations Industrial Development Organisation (UNIDO) had largely accounted for the success of the project.
Adeniyi, however urged the government to create enabling environment for manufacturers to enable them compete favourably in the global space.
“I will like to crave the indulgence of the Honourable Minister to use your good office in engendering government policies that will foster an enabling environment for private entrepreneurs to set up Sandwich panel production lines across the six geopolitical zones in Nigeria. For example, the current tax regime that subjects one of our major materials (prepainted galvanized induced steel) to 5percent import levy
and 40percent Customs duty while imported insulated panels are granted import levy and Customs duty waiver is a major disincentive to local manufacturers. This has a huge impact on our cost of production and ability to compete with imported finished products.
“In addition, I will like to advocate speedy approval for the commencement of HPMP phase II with Vitapur and outright ban on importation of ODS PU chemicals and products into Nigeria to encourage local production”, Adeniyi said.
Responding, Abubakar pledged federal government’s determination to create enabling environment for manufacturers In Nigeria as they occupy critical segment of foreign exchange earnings.
Vitafoam’s Chairman, Bamidele Makanjuola assured the federal government that Vitafaom and its subsidiaries would continue to strive towards generating foreign exchange for Nigeria.
He stressed that Vitapur had blazed the trail of leveraging panels to build schools across Nigeria, especially, in the northern part where panels insulate the buildings from heat.
The heart of the inauguration ceremony was a brief facility tour by the Minister, his entourage and other dignitaries.
