How forex challenge aids local production of raw materials —RMRDC boss

The present scenario of forex challenge can be termed  “a blessing in disguise” as it affords industry players the perfect opportunity to partner with government, academia and research institutes for local production of raw materials from available natural resources.

This was the submission of Dr. Hussaini D. Ibrahim,

Director-General/CEO Raw Materials Research and Development Council (RMRDC), at  the 2017 Paint Manufacturers Association of Nigeria coating show, held in Lagos last week.

Speaking during the event, Dr. Ibrahim noted that this year’s show is quite apt as the country faces the challenges declining infrastructure and foreign exchange for importation of raw materials for the manufacturing sector.

According to him, every sector has a part to play if the country must make a head way in the circumstances that it has found itself, especially, in the face of challenges posed by forex regulations, expressing the belief that with collective resolve and determination as a nation, it’s possible to rise above this challenge through a robust research and development (R&D) policy that is in consonance with the global R&D competitiveness

“The global trend in the coating industry has remained healthy in many regions of the world, with growth continuing at a modest pace. However, the following factors created uncertainty in the global coating supply:

“The slow down of key emerging economies, fluctuating value of United State’s dollar, the positive and negative impacts of lower oil prices, the rate of growth of the automotive and construction industries”, he said.

He also noted that while many of these factors are beyond the control of formulators and raw material suppliers, the industry’s ability to rapidly respond to changing market conditions with innovative technologies and processes helped in  mitigating any potential negative impacts and maximized the opportunities they created.

“Production and consumption are parallel in each country. Generally, the coatings industry grow in correlation with the economy of any nation, so growth is mainly focused on the developing world.

“The coatings industry in the United States, Western Europe, and Japan is matured and generally correlates with the health of the economy, whereas, the annual global rate of coating demand in the next five years is expected to be about three percent, with about two percent in Europe is expected to slow in Japan because of the lack of growth of major markets such as the automobile industry”, he said.

Dr. Ibrahim also posited that production and consumption are parallel in each country, but generally, the coatings industry grow in correlation with the economy of any nation, so growth is mainly focused on the developing world, stating that the coatings industry in the United States, Western Europe, and Japan is matured and generally correlates with the health of the economy. He believed that scarcity of forex has giving impetus to research and development, which he said is good for the economic development of Nigeria.

Explaining the challenges the paint industry has been facing, especially, in the last two years, PMA chairman, Mr. Rotimi Aluko noted that one of the major challenges facing the industry was scarcity/high cost of raw materials, majority of which are not locally available.

“However, we in the paint industry are always proactive by not allowing the economic situation to put us down. Though, it wasn’t easy, but all what we did was to ensure that we weren’t compromised on quality and also ensured that reasonable prices attached to our products.

“Besides, we used the opportunity of recession to engaged in serious research to make sure that we will reap maximum post-recession opportunities, knowing fully well that business goes through certain cycles. Hence, the determination by the association to do the needful by keeping the business going”, said Aluko, noting that, though, not as every thing is now rosy, but as of reality, the gain or proof of post recession may not be instantaneous, but gradual.