Business
RMRDC Plans Business Clusters In 774 LGAs
The Director General, Raw Materials Research and Development Council (RMRDC), Professor Peter Onwua1u, said lastThursday that the council would develop business clusters in the 774 Local Government Areas of the Federation.
Onwualu said this in an interview with newsmen in Abuja that the council had already started the process of technologically developing those clusters.
“If you look around the country, there are so many naturally existing clusters in Nigeria, like the furniture cluster in Abuja, the leather cluster in Kano, the shoe and bag cluster in Aba.
“Our idea is to look at these clusters, study them, find out their challenges and see how we can assist them to function better and make them produce competitively.
“The whole idea is to inject technology into existing clusters and see how we can solve the challenges they have, using technology and in some cases, establish new clusters,” he said.
Onwualu added that the council was looking at finding research centres with developed technologies and injecting such technologies into clusters that require them, thereby making them competitive.
He said that the council in 2010, began the mapping out of the clusters, which involved a scientific identification and analysis of the existing clusters.
The director general said that the RMRDC had conducted a baseline study in all the states of the federation to identify such clusters.
Onwualu said that the council had already conducted an international training programme in collaboration with the Swedish International Development Agency and Pan-African Competitive Forum with him as the Chairman.
He said that it was difficult to start the development in all council areas and as such, two clusters were selected from each geo-political zone for the training, which a total of 30 clusters were trained.
“The concept of the cluster programme is to see to the emergence of one viable technologically based cluster in every local government area; it is a tall order but it is part of our vision 20:2020.
“Canadian International Development Agency (CIDA) is now collaborating with us to inject technologies into these clusters and fund all projects on a 50-50 basis,” Onwualu said.
He said that the trainees were given templates and told to go back and analyse their problems, especially technologically based ones and come back with intended projects,
Onwualu added that the clusters had submitted their intended technologically-based projects and that the council was synthesising them for submission to CIDA.
He said that a pilot project had begun with the establishment of a technologically based Cashew processing cluster in Kogi, adding that four more would spring up in other states this year.
Onwualu added that one of the clusters to be developed was the organic fertiliser cluster in Enugu State and sheer butter processing plants in Kebbi State.
The director general said that the development of the clusters was going to be of economic importance to the country.
“When these clusters move into full production, they will begin to pay tax to the government.
“One of the aims of assisting them is to know exactly what they do and the quantity they produce with a view to accurately taxing them,” Onwualu said.
He said that the required technologies were not going to be totally imported as the council was partnering with some agencies in Nigeria, which could provide some of the technologies.
“We are already partnering with some agencies in Nigeria, which can have some of the technologies fabricated, it is when we cannot source them locally, that we will resort to importation,” Onwoalu said.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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