Nigeria and the United States have renewed commitments to bolster trade and investment relations between both countries to address trade disparities and promote innovation in the country.
Doris Uzoka-Anite, minister of Industry, Trade, and Investment, said that the country is dedicated to deepening this partnership, particularly through promoting non-oil exports to the USA under the Africa Growth and Opportunity Act (AGOA) and creating a conducive environment for business growth.
The minister disclosed this during a meeting with a US delegation led by Arun Venkataraman, Assistant Secretary of Commerce for Global Markets, on Wednesday, in Abuja where both parties agreed on the need for ongoing dialogue and collaboration focused on enhancing bilateral trade and investment relations between Nigeria and the United States.
Other key areas of discussion included the Trade and Investment Framework Agreement (TIFA), the Africa Growth and Opportunity Act (AGOA), the Bi-National Commission (BNC), and the Commercial Investment Dialogue (CID) as both parties emphasized the importance of diversifying Nigeria’s exports, promoting innovation, and creating a conducive environment for businesses to thrive.
Uzoka-Anite, highlighting Nigeria’s economic potential and recent initiatives, said that the country’s vast economic potential includes a large market and abundant natural resources including Initiatives like the National Talent Export Program position Nigeria as an export hub for talent outsourcing.
The minister also emphasized the importance of the US-Nigeria partnership, saying, “Nigeria and the United States share a deep and enduring relationship built on a foundation of mutual respect, shared values, and a commitment to open trade and economic collaboration.”
On his part, Venkataraman expressed the US government’s commitment to supporting Nigeria’s economic reforms and addressing challenges faced by US companies in Nigeria.
He said, “Our work to deepen business ties and build a strategic commercial partnership underscores our commitment to further enhancing these ties, fostering economic growth, and creating opportunities that benefit people across both our great nations.”
The US delegation showed keen interest in Nigeria’s economic reforms and expressed their readiness to support initiatives that promote trade and investment.
Venkataraman added, “We know that the United States and Nigeria recognize the immense potential of our economic cooperation, but now it is time to take that potential and make it a reality. We are not here to talk; we are here to take action.”
The meeting marks a significant step towards enhancing Nigeria-US commercial and investment relations, with both sides expressing optimism for future collaboration.
Investing in adhesive manufacturing plant
Starch is an industrial raw material for numerous industries such as textile, paper and printing, plywood, battery, laundry, paint, chemical, pharmaceutical and food. Starch has more than 100 known derivatives which include, among others, high fructose syrup, D-glucose, sorbitol, dextrin, alcohol, acetone, modified aldehyde, maltose, alkyd resins, starch esters, Starch ethers, phelnoic resins, and emulsion stabilisers.
Starch adhesives, on the other hand, are available in different forms including pure liquid solution, suspension, dispersion (including emulsion), paste, fusible solid and fusible film and are used to increase bond strength and flexibility as well as improving the stability of changes in atmospheric moisture in many chemical solutions.
Market prospects
The demand for starch / adhesive is very high and far from being satisfied. The domestic market has a very bright future and the current shortfall in domestic supply is evidenced in the large import figures standing against this class of products in the nations import bills annually.
Raw materials
Starch raw materials are locally sourced and they include Cassava, Ammonium Salt, Alkali Chemical Glue Adjuvant and Water.
Equipment needed
The plant is made up of steam boiler, graters, specific mixers, liquid pumps, filters, and dryers. Ancillary utilities like water and electricity will be of immense importance.
Production process
The production process begins with processing and grating of the raw materials, which is mainly cassava (other raw materials like maize, sorghum, potato are also available but more costly). This is followed by sieving and filtration to obtain starch.
The starch is pre-cooled in a reactor and treated with various chemicals, water, hydrolysing, neutralising. And decolouring agents depending on the class or purity level required. Water is thereafter evaporated from the mass to facilitate setting and drying as required.
Distribution and marketing options
The envisaged plant can set up its own sales / marketing team to engage in a sustained one-on-one sales drive. Advertising options could be based on usage of flyers and referrals.
Manpower requirement
A total of 6 staff is required in the short-term operations of the plant. They are Skilled Worker -1, semi-skilled workers-2, salesmen-1, driver-cum-salesman-1 and security operative – 1
Estimated start-up cost: – N30, 500,000 – N50,500, 000.00 for a reasonable output capacity
Potential net profit:- N30,500,000 – N40,000,000.00 per annum
This profile, or any similar one, can be developed into a bankable proposal for any interested investor. For further clarification, do contact Michael Stevens Consulting.
