January 9, 2018

The killing of 40 and more companies

Typical industrial clusters

By Eric Teniola

AS at 1979, when the ARMY handed over power, there were 40 companies operating in the country. These companies with their locations and the percentage of Federal Government shareholding are as follows: Anambra Motor MFG. Co. Ltd.-Anambra-35%, Nkalagu Cement Co. Ltd.(Expansion)-Anambra-10%, Steyr Nigeria Ltd.- Bauchi-35%, Ashaka Cement Company Ltd.-Bauchi-30%, New Nigeria Salt Company Ltd.-Bendel-100%, Delta Steel Company Ltd.-Bendel-100%, Nigerian National Shrimp Co. Ltd.-Bendel-51%, Nigerian National  Fish Co. Ltd-Bendel-66%, Benue Cement Company Ltd.- Benue-39%, Calabar Cement Company  Ltd.- Cross River-40%, Nigerian Newsprint MFG. Co. Ltd.-Cross River-80%, Serwood Industries Ltd.- Cross River-20%, Opobo Boat-Yards Ltd.-Cross River-43.75%, Savana Sugar Company  Ltd.-Gongola-72%, Aba Textile Mills Ltd.- Imo-70%, Electricity Meters company Ltd.- Kaduna-80%,  Peugeot  Automobile Nigeria Ltd.-Kaduna-35%, Batagarawa Steel Rolling Mill-Kaduna-100%, Super-Phosphate  Fertilizer Co.-Kaduna-100%, North Brewery Ltd.-Kano-50%, National Truces  Manufacturing Co. Ltd.-Kano-35%, Nigeria Sugar Company  Ltd.-Kwara-19.7%, Ajaokuta Steel Co. Ltd.-Kwara-100%, Nigera Paper Mills Ltd.-Kwara-100%, Lafiagi Sugar Company Ltd.-Kwara-90%, Nigeria Yeast & Alcohol Manufacturing Co. Ltd.-Kwara-51%, Flour Mills of Nigeria -Lagos-12%, West Africa Distillers Ltd.-Lagos-100%, Volkswagen of Nigeria Ltd-Lagos-35%, Nichemtex  Industries Ltd.-Lagos-9.23%, Sunti Sugar   Company Ltd.-Niger-90%, West African Portland Cement Co. Ltd.-Ogun-20%, National Salt Company Ltd.-Ogun-100%, Nigeria National Paper Manufacturing Co .Ltd.-Ogun-70%, Nigeria Transformers Ltd..-Ogun-65%, Nigeria-Romania Wood Indusries Ltd.-Ondo-25%, Leyland Nigeria Ltd.-Oyo-35%, Oshogbo Steel Rolling Mill-Osun-100%, Jos Steel Rolling Mill-Plateau-100% and Sokoto Cement Company Ltd.-Sokoto-31%.

If I may ask, how many of these companies or industries are still operating today? The truth is that most of these companies and industries have ceased to operate. Why? MISMANAGEMENT. Am aware that President Muhammadu Buhari is preparing to pour money to re-activate Ajaokuta Steel Company. But what about others. But the story is not the same with some foreign companies operating in Nigeria established years ago. Let’s take a look.

MAY & BAKER was the first pharmaceutical company to be founded in Nigeria having been incorporated in 1944. Many of the company’s  leading brands are house-hold names in Ethical Pharmaceutical and Family Health-Care Products. The Company maintains Technical and Management Services Agreement with Rhone-Poulenc Rorer, one of the leading pharmaceutical companies in the world and a major stakeholder. MAY & BAKER NIGERIA’S leading brands include M&B Tixylix (paediatric cough medicine), Oruvail(anti rheumatic), Peflacine (antibiotic), Flagyl(anti-infective) and Vaccines. Over 75 percent of its sales are derived from human pharmaceuticals, manufactured at its Ikeja, Lagos factory. It suppliers cut across indigenous and foreign companies. The major off-shore suppliers are Rhone-Poulenc Rorer SA of France and Rhone-Poulenc Rorer Exports Limited of United Kingdom. At the local level, the major suppliers include Smurfit Cases Nigeria Limited, Avon Crown Caps Limited and Guinea Glass Limited.

Paterson Zochonis & Company Limited of Manchester, England commenced business in Nigeria in 1899 as a traditional West African Merchant. The major Landmark in PZ’s development in Nigeria came after the Second World War when the company acquired P.B. Nicolas & Company limited a small soap factory in Aba in 1948. The name was changed to Alagbon Industries Limited in 1953 and then to Associated Industries Limited in 1960. The name was finally changed to Paterson Zochonis Industries Plc in 1976. Today since its incorporation in Nigeria, the PZ group of companies now spans a wide range of manufacturing and commercial activities scattered across Nigeria.

Nigerian Bottling Company PLC’S path to greatness began in a modest way November 22, 1951 when it was incorporated as a private limited company, to establish and operate factories for the bottling and distribution of soft drinks in Nigeria. It rolled out its first cases of Coca Cola in 1953 from one plant bottling operation in Oyingbo, Lagos state. Since then, NBC and Coca Cola have become synonymous in Nigeria and this dynamic Company is the largest bottler of soft hard drinks in Nigeria and a bottling giant in Africa.

The  Nigerian Breweries PLC, the pioneer and largest brewing company in Nigeria, was incorporated in 1946 and recorded a landmark when the first bottle of STAR Lager Beer rolled off the bottling lines in its Lagos Brewery in June, 1949. This was followed by Aba Brewery which was commissioned in 1957, Kaduna Brewery in 1963 and Ibadan Brewery in 1982. In September 1993, the company acquired its fifth Brewery in Enugu. Thus, from its humble beginning in 1946, the company now has five breweries from where its high quality products are distributed to all parts of this country. Nigeria Breweries Plc has a portfolio of six high quality brands: Star Lager Beer, Gulder Lager Beer, Maltina with its winsome strawberry, exotic fruits and classic varieties; Legends Extra Stout, Amstel Malta and Schweppes range of carbonated soft drinks (Schweppes Bitter Lemon, Schweppes Tonic and Schweppes Soda Water). Together, the brands have facilitated its strong leadership position  in the total brewed products market in Nigeria.

JULIUS BERGER NIGERIA PLC began operation in Nigeria in 1965 with the construction of Eko Bridge. It was incorporated on 18th February, 1970 as a Civil Engineering Firm. The competence with which the company executes contracts won the confidence of Nigerians. Few prominent works execute by the company are: Third Apapa Wharf Extension and Tin Can Island Ports in Lagos, Sapele and Warri Ports in Delta State. Others are the Lagos-Ibadan Expressway, Apapa Oshodi Expressway, Lagos Inner Ring Road, Lagos Eti-Osa Road Phase I and II, Amuwo Odofin Road, Lekki Peninsula Road Scheme I, Igbokuta-Imota Road. It  also built the Ajaokuta Road Bridge in Kogi State, Jebba Road Bridge in Kwara State, Ethiope and Jamieson Bridge at Sapele, New Carter Bridge with its West Ramp, Third Mainland Bridge (Oworonsoki End) and Opebi Bridge in Lagos.

LEVER BROTHERS NIGERIA PLC, the longest surviving manufacturing outfit in Nigeria has seen the best as well as worst in Nigeria’s economy over the last 74 years.

The Company came into existence in 1923 through the efforts of a pioneering entrepreneur, Lord Leverhulme who rather than taking palm oil from Nigeria to make soap in England and shipping it back to sell to us, decided to manufacture the soap right here where the palm oil is produced. I should therefore not be surprising that Lever Brothers has since been in the forefront of local raw material development and backward integration. Lever Brothers Nigeria PLC was re-classified as a conglomerate a few years ago. The company started as a soap company and expanded to non-soapy detergents. The company later went into foods, producing Table Margarines and Bakery Fats and eventually went into personal products, producing Dental Care Products, Creams, Jellies and Lotions. NESTLE FOODS NIGERIA PLC is a leading food manufacturing and marketing company renowned for its top quality products. The Company began simple trading operations in Nigeria in 1961. The company’s manufacturing facilities, located at Agbara Industrial Estate in Ogun State, produce NIDO-milk, CERELAC, NUTREND and CERELAC  CHOCOLATE-Baby  weaning foods; GOLDEN MORN-an instant breakfast cereal; MILO, NESCAO, CHOCOLIM-beverage drinks; CHOCO MILO-chocolate sweet; MAGGI CUBES, MAGGI SUPER ONION SPICES, MAGGI CHICKEN, MAGGI CRAYFISH, MAGGI MUTTON TOMATOE and MAGGI PEPPER SOUP-kitchen seasonings; and MAGGI 2-MNUTE NODDLES.

These are companies operating in Nigeria that have expatriates connections. Some faced certain problems a few years ago including GUINNESS NIGERIA LIMITED but they have since bounced back.