By Dickson Okafor
Chairman, Filterland Industries Nig Ltd, Benson Abalogu, said only steady power supply will guarantee industrial growth and generate employment in Nigeria. He revealed that as a manufacturer, he has remained in business because he acquired a dedicated electricity line.
He called on the government to encourage local manufacturers through the provision of infrastructure like security, good road network and loan with low interest rate to Small and Medium Enterprise for businesses to thrive.
Abalogu said these challenges has led to the closure of businesses by some manufacturers or in some cases, their relocation to neighbouring countries which amounts to job loses in Nigeria.
He speaks about the effects of land border closure, the state of the nation’s economy and how he was able to remain afloat.
With the present economic state of the nation, how have manufacturers been able to remain afloat?
I’m into filter production that comprises filters for generator both oil and gas including oil filter for trucks. That is why Filterland is a known spare parts producer of all types filters in Nigeria. We started production 12 years ago and the industry has grown with more branches. We have been consistently managing it because it is not easy to remain a manufacturer in Nigeria with the challenges we confront. We are competing with China which is the largest manufacturer of filters in the world, but we have remained afloat. Filter is almost free duty and that is why we the local manufacturers are having problems to remain in business. We produce at high cost because China has continued to flood our market with their products.
So, in terms of industrial development and manufacturing, we are managing to cope with the numerous challenges.
How has the demand been in terms local production?
At first when I started producing filter, we had other companies all over Nigeria that were into production, but most of them have closed. But i persisted because of my resilience even though I lose so much resources to remain in manufacturing in Nigeria. I thank God because Filterland products have remained the best choice for customers. But the problem we have is that the major industrial players like Dangote and the rest that are supposed to be buying Nigerian made products prefer importing foreign manufactured filters. If they come to me, I will sell almost half the price to them, but they prefer importing.
I know that later things will be fine. I have been going to the meeting of Manufacturers Association of Nigeria (MAN) for over 12 years, but nothing has come out of all the marketing strategy MAN has introduced or gone into to attract major buyers.
Nevertheless, in the open market, we are doing well because that is our strength. The major challenge we have is that big companies have not started patronising us and I pray they will do.
MAN has always complained that the problem they face is importation of most of the products they manufacture here in Nigeria. How have you been able to cope?
That is our major challenge but I thank God for enabling us to be able to put a dedicated line here in the industry that has provided us constant electricity supply. If not, I think we we would not have been in business. I have spent so much on trying to generate electricity. How much are we making as profit? Yet, we still spend huge sums of money to bring steady electricity into our industries across Nigeria. That is why we are still surviving because manufacturing without steady power supply amounts to nothing. This is the major reason why so many manufacturing companies in the country have closed down and some have relocated to neighbouring countries. With the use of generator, no manufacturing company can survive in Nigeria. You know how much they are selling fuel and gas now after fuel subsidy removal. Today, a litre of is N1000 and N1,400. So, we are surviving now because of the dedicated line because it helps us to still exist as a manufacturing company, otherwise it is not easy.
Recently, we heaved a sigh of relief as the movement goods have become easier because the Lagos government has done the road leading to our factory. This has made transportation of our products very easy.
What is the effect of the closure of land borders by the immediate past administration?
As a local manufacturer, the closure of land borders by former President Muhammadu Buhari administration did not affect me negatively because my products are moved directly to other countries through the nation’s seaports. So, it does not affect me because I don’t know whether land borders are close or not. Meanwhile, border closure is an oppourtunity for business especially manufacturing, to thrive in Nigeria if there is functional infrastructure in the country such as steady power supply, security, good road networks and low interest rate on loans for the Small and Medium Enterprise to flourish.
What is the size of your workforce?
As I said earlier, we are still pushing and will continue to push in order to overcome huge challenges confronting manufacturers in Nigeria. I made a promise eight years ago that we are developing Filterland and building more factories that would employ over 2,000 workers and as I speak with you, it is a dream come true. In my town, Ukpo, in Anambra, the construction of a befitting factory is almost completed and we are going to employ more workers in that factory when it starts operation.
What we need from government as means of support for manufacturing to thrive and employment generated is steady power supply and that is the best way to partner government in local production of goods and services. That is part of what I will discuss with the Governor Charles Soludo.
and that was why I worked very hard to ensure he become the governor of Anambra State and I will work more to ensure he is reelected in 2025 by the grace of God. He is a visionary leader and so far, he has transformed Anambra State into a modern city with massive road construction, education and health. I’m going with my friend to Ukpo who is also a manufacturer because we also thinking of going to Aba, Abia State due to steady electricity supply in the state which is made possible by the Governor of Abia, Alex Otti through Geometrics. So, my friend and I have decided to invest in Abia State because we can’t do anything in a factory without steady power supply.
The FG have hike the price of electricity in what they term Band B and Nigerians have condemned the increment in electricity tariff, how will the increment affect industrial growth in Nigeria?
What the Manufacturers Association of Nigeria (MAN) is after is that government should give us light 24 hours in Nigeria and there will be industrial growth. Because these Band A or B does not matter to many Nigerians, all we need is steady power supply. Because what I’m paying since I connected Medicated line which is band A is huge. Only steady power supply will guarantee industrial growth and generate employment. Because the important thing in manufacturing is uninterrupted power supply which will enable us to continue to produce goods at cheaper rate. If you don’t give Nigerians steady power supply, forget about employment generation. First thing that makes a nation grow is steady power supply if you go round the earth and check, you will find out that steady electricity is the key to industrial growth.
How do you source raw material for production because some manufacturers import their raw materials and with the present exchange rate, how do you cope?
It is very challenging to cope as a manufacturer hence in our case, we are taking things gradually and that is why we are still in business. I thank God that the rate of dollar and other foreign currencies are coming down. We patronize black market like others. Because we did LC last two years and our money is stocked in the banks even though they are releasing some of it to us. If your money is stocked in the bank, will you be waiting for the Central Bank to give it to you as a manufacturer before you can continue with your business? No. rather you sort through black market to keep the factory moving.
Are you saying because of insecurity you are founding it difficult to get expatriate?
Yes, because of insecurity in the country, any place you go to seek expatriate to join you they will remind you of insecurity in Nigeria as the major reason they won’t come.
Where do we see filterland industry in the 10 years?
Even today I’m controlling Nigeria and Africa market and I’m hopeful that in the next 10 years filterland industries will attain greater height even though we are not selling with profit because we are competing with China. I believe in moving forward and being diligent in what I’m doing and God will take care of the other things.