With the imminent completion of thenew $225 million manufacturing facility in Lekki, Lagos, Dr. Mike Ezeaju, Chairman and CEO of Swisstrade Security Doors Nigeria Limited, cautiously welcome President Bola Tinubu's proposed reforms for the manufacturing sector. In this interview with Louis Achi, he share insights into the challenges and growth prospects of the industry.
Recently, the federal government announced a collaborative effort with the Manufacturers Association of Nigeria (MAN), of which we are a proud member, to develop an actionable roadmap and policy framework aimed at revitalizing the nation's manufacturing sector.
What’s your reading of this move?
The administration's introduction of disruptive innovations is significant, and we, in the manufacturing sector, should endorse this positive policy statement from the presidency.
It is important for the federal government to carefully consider the sequencing of these reforms to avoid exacerbating destabilizing disruptions, despite the inevitable challenges that come with fundamental reforms.
Could you be more specific…
For example, the effects of recent macroeconomic changes, like adjustments in foreign exchange (FX) and Petroleum Motor Spirit (PMS) prices, on businesses during the first quarter of this year should not be underestimated.
These modifications have led to increased expenses in various production areas, such as raw materials, logistics, working capital, inventory, and more. The current economic situation, marked by higher credit expenses and increased business risks, has forced companies, particularly manufacturing firms, to streamline their activities in order to navigate these obstacles. This could have an impact on GDP growth forecasts.
However, I believe that President Tinubu's choice to eliminate fuel subsidies was a necessary step to prevent national bankruptcy and restructure the economy for growth, despite the fact that it has caused challenges and difficulties for numerous Nigerians. Subsequent related changes demonstrate compassionate policy development.
I would like to express my appreciation for the efforts of the President Tinubu-led administration in collaborating with MAN and other stakeholders to establish a common ground on the economic framework needed to drive Nigeria's progress in the coming years, aiming to surpass the President's goal of achieving a one trillion-dollar GDP economy. The significance of the manufacturing sector in enhancing the country's prosperity, employment opportunities, quality of life, and revenue cannot be denied.
What is Swisstrade’s business model?
Swisstrade Security Doors Limited is Africa’s number one
armored steel security door company with a total focus on quality.
Our progression to the top in the armored steel door
manufacturing niche flow from our careful data-based evaluation of the Nigerian
and African market and strict fidelity to an uncompromising quality production
process. These have configured our capacity to produce security doors of the
highest quality in accordance with international standards.
Our operational principle of “Quality First” has been a
guiding tool in our campaign for state-of-the-art technology in armored
security door production that remains tightly knit, as we apply quality control
system right from raw materials selection through all the stages of production
and finally during delivery.
This system enables us to avoid defects in any of our
products. SWISSTRADE doors are certified by international quality and standards
organizations from production through to assembling and delivery.
We have grown from strength to strength only by a continuous
drive for constant improvement, assessment, and innovations.
Therefore, through experience and unwavering tradition, we
have gained market confidence and international recognition as we expand into
new horizons. Our products stand out as the most preferred brands in homes,
offices, banks, hotels, and parastatals.
Our facility houses several large-scale capacity production
and assembly plants, supported by modern, sophisticated equipment and computer
technology to aid our and production, which makes our doors of unrivaled on the
continent.
We have been in business for twenty-eight years and growing
from strength to strength. Our clients have been our partners in progress, and
we always prioritise their peculiar needs and interests.
What are some of the challenges in your business
environment?
First, let me state clearly here that manufacturing is at
the heart of industrialization. It is an inescapable road to sustainable and
inclusive economic growth and human development. This is a period of
significant economic disruptions globally. It is not only in Nigeria.
But the central responsibility of leadership is to engage
and overcome these challenges. I believe this is what is taking place in our
country currently. We should stay the course. Moving on, in my opinion,
government’s policy in supporting manufacturing, which by the way is partly the
reason for creating the Bank of Industry (BOI), should be tweaked.
I believe this crucial policy would have worked more
effectively and efficiently if BOI will be redesigned and have more expertise
to be able to loan directly to manufacturing companies – in a quicker and
cheaper mode – thereby eliminating the unnecessary bottlenecks and further
charges occurring with the current system of routing it through commercial
banks.
Our biggest challenge has to do with unscrupulous business
folks importing very inferior products and foisting them on the market. They
are by so doing destroying the economy of Nigeria, as these doors do not last,
and these importers hardly pay any tax.
They are just out there to make a profit at the expense of
the people. Another challenge is the need for much enhanced government
patronage. That will enable us to employ more Nigerians and stimulate the
economy by enhancing more economic activity.
We understand SWISSTRADE is building a new facility at
Lekki, Lagos…
Correct. It is actually a $225 million-dollar ultra-modern
manufacturing facility.
This brings me back to the necessity of tweaking BOI’s
funding engagement template. SWISSTRADE is actually solely funding this massive
project. This total funding from our pockets without a single bank’s
involvement naturally puts enormous pressure on us. It’s almost inconceivable.
Imagine the employment boost this facility will provide and
the impact it will also have on the nation’s GDP. We are looking at completing
the project by the end of this year 2024.
But it could have been completed a year earlier and would have been up
and running with huge employment opportunities had it been we were supported
initially by the bank.
And mind you, we not only produce for local consumption but
also export directly to neighboring countries, such as Mali, Senegal, Ghana,
Benin, Togo, Cameroon, et cetera. As we expand further, our impact on the
economy of Nigeria will then even be greater.
What’s happening on your corporate responsibility front?
Every responsible organization should not permit grass to
grow under its feet on that front. Hence, our innate desire to meaningfully
impact the growth of the Nigerian economy and enhance the wellbeing of its
citizens has guided our corporate responsibility interventions.
In Anambra, Awgbu town, for example, we constructed 3.7
kilometers of nylon-tarred, high-quality road at the cost of N368 million.
The roads were so bad that market women and men fail to
bring their products to market for sale. All the farmers find it difficult to
bring their produce to market for sale. By fixing the road, the economy of the
benefitting localities, the state and by extension that of Nigeria are being
lifted.
We also constructed ultra-modern, very large school
buildings, and have thus far awarded scholarships to 63 students – males and
females. The beneficiaries are drawn from different parts of the country.
In Lagos State, we are also collaborating with the local
police to provide them with some of their basic needs, such as refurbishment of
operational vehicles and divisional office.
Education is a powerful tool for global transformation, as Nelson Mandela famously stated. In addition to the scholarships we provide, we foster healthy competition and a culture of excellence by recognizing the top students in both private and public schools with cash awards. Our most recent endeavor was with Chrisland Schools in Lagos, and we intend to expand this initiative to other regions of the country in due course.
Furthermore, we prioritize cleanliness and environmental sustainability. We contribute to national security by creating employment opportunities for Nigerians from diverse backgrounds.
It is important to note that we do not view Nigeria as a dumping ground for substandard products. As we progress, particularly with the completion of the aforementioned facility, we anticipate significantly increasing our contributions to Nigeria.