The apparent success of backward integration achieved by Dangote Cement which led to the end of cement importation has started encouraging other industrial conglomerate, including PZ Cussons Nigeria Plc to tap from the scheme.
Already, the Managing Director and Chief Executive Officer of PZ Cussons Nigeria Plc, Christos Giannopoulos has said that the organisation invested about N91.5 billion ($300 million) as of measures to implement its backward integration plan in the country.
While calling on industry players to grow local content as way of reserving foreign exchange in the country, Giannopoulos, who was Guest Speaker at the October Breakfast meeting of Nigerian-British Chamber of Commerce (NBCC) in Lagos, said Nigeria would meet demand in palm oil production if players come together and increase the amount of palm oil production in the country.
Hingingbhis presentation on “Manufacturing sector as catalyst for economic growth in Nigeria”, Giannopoulos argued that manufacturers in the country must take advantage of necessary opportunities to source local materials, backwardly integrate, innovate and build skills.
“The amount of money the country spends yearly on importing raw materials for production could drastically reduce if necessary sectors, particularly petrochemical refineries and palm oil production facilities are in operation”, he stressed.
Giannopoulos said: “If today after our plantations are fully grown and we are producing palm oil, we will reduce our import cost or requirements by about 25 per cent and when the petrochemical refineries are built or fixed. We will also reduce our import cost by another 25 per cent. Only these two will reduce the amount of dollar we use on import by half.”
According to him, the organisation is in talks with key stakeholders, particularly the ministry of science and technology and National Agency for Food Drug Administration and Control (NAFDAC) in order to bring together manufacturers and other players in the sector to discuss complementary steps.
He said though the country may not be able to grow local content overnight, current efforts showed that the nation is heading in the right direction.
