Marinho-Chemical Sector Review

8/22/2019 Marinho-Chemical Sector Review

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THE CHEMICALS AND PHARMACEUTICALS SECTOR: A REVIEW

INTRODUCTION

Nigerian Manufacturing Sector - Past and Future

A strong and prosperous Nigeria will depend upon a vibrant and growing

manufacturing sector that can renew and create national competitive

advantages in the midst of rapid technological change and globalization of

markets production and innovation. The manufacturing sector provides the

greatest opportunity for the transformation of the Nigerian economy from a

mono-cultural economy to a diversified one. It is an antidote for

unemployment, a creator of wealth and the threshold for sustainable

development.

Several challenges have impeded the growth and competitiveness of theNigerian manufacturing industry over the last decades. These includegrossly inadequate physical and socio-economic infrastructure, inadequatelyskilled manpower, unfavourable trade policies and uncoordinated industrialpolicies. Currently, the cost of doing business in Nigeria is very high due tothe constraining factors of inadequate infrastructure (including power,telecommunications, transportation etc.). In addition, high fuel costs,security costs, business registration costs, interest rates, exchange rates andmultiple taxes from the various levels of government have resulted inincreased unit price of manufactures and low capacity utilization rates.Government must give priority attention to institutional reforms that canenhance the public sector delivery of different infrastructure componentsand reduce induced costs ofdoing business at the various levels of government.

Despite these vast challenges, there exist many opportunities that ifharnessed can propel Nigeria to the top league of manufacturing countriesworldwide. It will be necessary for the Federal Government to institutepolicies and initiatives that will enable the manufacturing sector capitalise onopportunities such as increased local and international demand formanufactured goods, availability of natural resources and cheap labour.

Increased efficiency and productivity are required to ensure competitivenessand growth of the manufacturing sector and the Nigerian economy as awhole. Hence, it is imperative that a host of factors, includingmacroeconomic stability, availability of stable power supply, innovation,technology, skills acquisition and quality infrastructure, are in place to drivethis growth.


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For Nigeria to attain the Vision 2020 intent of the FG, the strategy plan forthe manufacturing sector herein must be fully implemented and themonitoring framework defined in the sector implementation roadmap strictlyadhered to. This strategy plan is spearheaded by the vision and objectivesdefined for the manufacturing sector.

Historically, the macro-economic policy context underpinning

industrialization of Nigeria can be divided into six distinct periods marked by

significant shifts in economic policy management. These periods are:

1. Colonial Pre-Independence Period

In this period, nationalists saw industrialization as the key to economic

independence and the elimination of poverty and unemployment. Hence,

the Colonial Development and Welfare Acts and several Ordinances to

promote industrial growth were promulgated.

2. Immediate Post-Independence Period (1960-1966)

The immediate post-independence economy was characterized by

deterioration in terms of trade and the rise of the oil economy. The

manufacturing sector was dominated by a few European commercial firms

and it contributed only 4.8% of GDP in 1960. (Beran et al., 1999). While

agricultural production began to decline, manufacturing, oil health and

education grew in comparison to other sectors.

3. Post Civil War Oil Period (1970-1979)

The post civil war economy was dominated by the oil boom which enabled

expansion of infrastructure and public sector investment in large scale

manufacturing concerns. This expansion was aimed at achieving import

substitution of foreign consumer goods and consumer durables. Import

substitution policies were introduced which made the sector heavily

dependent on imported raw materials and capital goods, protection from

foreign competition and preferential treatment in foreign exchange

allocation (Adewuyi, 2006). This resulted in lack of competitiveness and thecreation of a manufacturing base that had insignificant backward and

forward linkage effects with the rest of the economy.

4. Transition to the Austere Economy (1980-1986)

By 1981, oil revenue had sharply declined resulting in a high deficit financing

that drained the external reserve and the piling up of foreign debt. In 1982,


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the loss of reserves and accelerating inflation prompted emergency

stabilization policy measures such as advance deposits for imports, increase

in import duties, review of import licences, upward review of excise duties,

interest rates and prices of petroleum products. These policy measures

brought a lot of stress on the productive sector of the economy and there

was a decline in performance of the manufacturing sector with dramatic loss

of production capacity resulting in gross losses in output and employment. It

was reported that the aggregate index of manufacturing fell by 26% in 1983

and average capacity utilization in industry declined from 73.3% I 1981 to

38.2% in 1986.

5. The Structural Adjustment Programme (SAP) Era

The Structural Adjustment Programme introduced in 1986, was a medium-

term strategic policy programme aimed at revamping the economy under

persistent recession and setting it on the path of sustainable growth. It wasacknowledged as a profound economic reform aimed at addressing the

inherent weakness of the economy and introduced measures such as

liberalized regulations governing the import of capital goods, raw materials

and components, the creation of import substitution industries, and

beginning in 1988, privatization and commercialization of industrial

concerns. There was evidence of deliberate shift to local raw materials

sourcing by industry as one of the ways to cope with some of the challenges

of this era. The increase in the cost of imports and pressure by government

resulted in the rise of local raw materials sourcing by industry from 38% in1985 to 50% in 1988.

6. The Regime of Further Economic Liberalization Resulting in

Emergent MACRO- Economic Stability (1999-date):

The decade of the 1990s was mostly a period of economic and political crisis

in Nigeria largely due to authoritarian military rule. The return to democratic

governance in 1999 introduced a new opportunity for political and economic

freedom, which enabled economic debate and planning for growth and

poverty reduction. The outcome was an emerging economy with relatively

stable exchange rate, fairly predictable macro-economic environment and

good prospect for growth. The GDP growth rate which was only 1.1% in

1999 recorded an average growth of 5.4% between 2000 and 2004 and rose

to 6.9% in 2005. Value added in manufacturing grew at an average of 8.8%

between 2000 and 2004. Capacity utilization rose from about 34% in 1999

to over 53% in 2007. In recent years, investment in the manufacturing


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sector has been very low- indigenous manufacturing firms, multinationals

and investors aiming to avoid the nations challenging social and

infrastructural landscape have shut down or relocated outside the country.

Nigerian Manufacturing Sector Assessment

Nigerias manufacturing sector is assessed on three interdependent levels -industry performance, economic and social contribution. The result of theseassessments show the sector performs poorly on all three fronts. However,due to the numerous linkages the manufacturing sector has with othersectors, it has the potential to boost economic growth and stimulate socialfactors of employment generation, wealth creation and poverty eradication.The manufacturing sector through its contributions to GDP, employmentshare and thus per capita income also has the potential to set Nigeria on thepath to achieving the 2015 Millennium Development Goal (MDG) goal oferadicating extreme hunger and poverty.

The sector has, however, performed woefully and failed to deliver on its highpotentials as reflected by present low capacity utilization, minimal economiccontribution to GDP and low employment share in comparison to othersectors.

The Nigerian manufacturing sector has failed to undergo the criticalstructural transformation necessary for it to play a leading role in economicgrowth and development. The sector is structurally weak and basicindustries such as iron, steel and petrochemicals are not fully in place. Thetechnological base for manufacturing is lacking, largely due to the near

absence or inadequacy of research and development efforts and lightmanufactures, which depend entirely on imports for machinery, equipmentand spare parts, are prevalent. These factors have led previousdevelopmental plans to describe the Nigerian manufacturing sector as one ofmere assembly plants. In addition, the skilled manpower necessary toguarantee competitiveness in the modern day, dynamic and globalised worldis lacking.

Consequently, the sector is unable to attract the necessary investment foreconomic growth and remains an insignificant player in the economy. Inrecent years, the sectors share of GDP has remained less than 5% of the

annual average, contributions to foreign exchange earnings have beenminimal and share of employment and government revenue generated havebeen low. In short, the manufacturing sector has failed to be recognized as amover of the nations economy.

Manufacturing by Year 2020Over the next eleven years, the manufacturing sector will remain one of theprincipal means by which wealth is created and the emergence of new


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manufacturing technologies, spurred by intense competition, will lead todramatically new products and processes. By year 2020, it will becomeincreasingly important for countries to focus on technologically drivenmanufacturing sub-sectors, such as electronics, automobiles etc, as a meansto drive national growth and productivity.

By 2020 it is expected that manufacturing growth rates will start to declinein developed countries while their service sectors grow. However, suchcountries will continue to remain competitive and add value to the industrythrough innovation, improved productivity and the ability to create highpaying jobs. Developing countries, on the other hand, will gradually shifttowards traditional manufacturing and mass customization.

The Chemicals and Pharmaceuticals Sector

The Chemicals and Pharmaceutical industry has a potentially large market in

Nigeria and the West African sub-region. There has been a significantincrease in the number of Nigerian companies participating in this sub-sector, which was hitherto dominated by foreign companies. The mission forthe Pharmaceuticals sub-sector is to produce at least 75 percent of thenations drug needs by 2020. To further harness the opportunities in thisindustry, the following are some strategies and initiatives for thedevelopment of the sub-sector:

Strategies and Initiatives for the Chemicals and Pharmaceuticals

Industry

Achieve World Health Organization (WHO) Good Manufacturing

Practice (GMP)

Certification for the top 25 Pharmaceutical manufacturers in Nigeria

Obtain special long term funds to build/refurbish plants CBN/Bankswith FGN subsidy

Hire global Consultants to lead the certification efforts FGN, NEPAD,

ECOWAS, WAHO to support

Increase local sourcing of raw materials to achieve at least 50 percentof total inputs

Establish primary production plants FGN subsidized funding,

multilateral agency funding

Strengthen local R&D facilities FMST to ensure pharmaceuticalagencies are focused on backward integration

Expand range of products, especially sterile

Obtain special long-term funding

Invest 10-25 percent of profits in R&D


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Enter into strategic alliances acquisitions and mergers, franchisesand partnerships

Eliminate unfair trade practices

Strengthen NAFDAC

Strategic alliance with border control Train, Immigration/Customs,

introduce intelligence surveillance, incentive security agents Restructure the distribution system

Adopt the new drug-mart concept

Encourage OPS investment in distribution

Strengthen key regulatory agencies PCN/NAFDAC

Provide at least 25 percent of all drugs supplied to the ECOWAS region

Push for regulatory harmonization WAPMA/WAHO intervention

Push for ECOWAS trade liberalisation protocols ECOWAS/Presidency

intervention

Remove all non-tariff barriers

Promote intra-regional transportation network airlines, shipping lines,road transportation

Upgrading of quality of locally sourced materials

Federal Government to institute and/or upgrade R&D/Quality Control

Institutions for the raw materials utilised in the industry.

Encourage pharmaceutical industrialists to invest in the production of

fine chemicals

Federal Government and Organized Private Sector (OPS) to form Joint

Ventures

Federal Government to provide tax and tariff relieves

The Petrochemicals IndustryCurrent PositionNigeria has a population of over 160 million people and an abundance ofnatural resources, especially hydrocarbons. It is the 10th largest oil producerin the world, the third largest in Africa and the most prolific oil producer inSub-Saharan Africa. The petrochemical industry is focused around the threeCentres of Kaduna, Warri and Eleme with eight oil companies and about 750independents all active in the marketing of petroleum products.

The Nigerian economy is largely dependent on its oil sector which supplies

95% of its foreign exchange earnings and the downstream oil industryhappens to be another key sector. However, the countrys four oil refineries- with a nameplate capacity of 445,000 bbl/d do not refine enough oil tomeet the demands of the growing domestic market. Problems such as fire,sabotage, poor management, lack of turn around maintenance andcorruption mean that the refineries often operate at 40% of full capacity, if atall. This has resulted in perennial shortages of refined products and theneed to increase imports to meet domestic demand. Also, irregular and


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infrequent Turn Around Maintenance (TAM) of refineries and award of TAMcontract to incompetent contractors have resulted in the deterioration ofexisting refineries.

Opportunities

The most promising development is the US$2.5bn Viva Methanol methanol-to-olefins (MTO) project will have a positive impact on the countryspetrochemicals sector. The facility is scheduled for start-up in 2012 withcapacity of 1.3mn tonnes per annum (tpa) of ethylene and propylene, 2.5mntpa methanol 400,000tpa of PP and 400,000tpa of HDPE. However, judgingby Nigerias past experience handling large petrochemicals developments,the MTO project will face delays may not come on stream over the forecastperiod to 2013. Poor infrastructure, political instability, labour militancy,sabotage, poor management and corruption will remain barriers toinvestment which raised the risks and start-up costs of downstream projects.Unless these are addressed, it remains doubtful that the government would

be able to expand the petrochemicals sector. Consequently, Nigerianpetrochemicals capacity will remain at current rates: 300,000tpa of ethylene,125,000tpa of propylene, 250,000tpa of PE and 80,000tpa of PP.

The petrochemicals sub-sector has been targeted for privatization in order toimprove efficiency and add value to Nigerias oil and gas output. There aredoubts that any serious investor would consider Nigeria a viable option fordeveloping and expanding its petrochemicals sector. This has been provenby the governments repeated failure to attract any interest in its proposedprivatisation of petrochemicals companies.

ChallengesThere are various challenges associated with investment in the downstreamsector in Nigeria. These can be summarised as follows:

High level of corruption: Strong cabal in government benefiting from the in-operation of the refinery

Lack of accountability: Over $200 million spent on turn aroundmaintenance of the refineries over the last two years with little or no sign ofimprovements yet no one has been held accountable

High level of government regulations: The fact that price of petrol isregulated by government has discouraged investment in the downstreamrefining sector as the current price is not profitable for investors.

Low approval limits of $50,000 for Managing Director of refineries. Approvalfor any expenditure above this must be sought from the Federal Government


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Pricing inflexibility in the Nigerian Market: High probability of industrialstrike actions by Unions and Civil Organizations if prices are deregulated orincreased in Nigeria

Poor security in oil region: Vandalising of pipelines resulting in irregular

supply of crude oil feedstock to refineries

Unstable investment environment in Nigeria- Policy instability in Nigeria as change in government may mean

change in policy- Militancy and host communities restiveness

Imperatives Full deregulation of the Nigerian downstream refining sector Establishment of private refineries - This may increase fuel prices in theshort term but will result in cheaper fuels in the long term

Provision of additional incentives by government to encourage investment Guaranteed crude feedstock as incentive to private refinery operators.

Hydro-Carbon Based IndustriesSignificant investment is required in the hydro-carbon based industry tostimulate growth in the chemical and other sub-sectors. This will accelerateproduction of basic raw materials such as polypropylene, poly-vinyl chlorides,linear-alkyl benzene, resins and other polymers used in paints, plastics,pharmaceuticals, LPG, foam, printing and publishing and other industries,etc. Strategies for the hydro-carbon based industry are as follows:

Establishment of private refineries and privatisation of existingpetrochemicals and oil refineries Resolution of the petroleum products pricing/subsidy issue Phased import deletion of chemicals that can be produced locally Partnering with R&D institutes and energy companies to increaseavailability of basic raw materials The setting up of national plastics engineering and tooling Centres Funding of organised research for plastics and foam industries in relevanttertiary institutions

The Pharmaceuticals IndustryCurrent PositionThe Pharmaceuticals Manufacturers Group of the Manufacturers Associationof Nigeria (PMGMAN) estimates that, the Nigerian pharmaceuticals marketmay be valued at approximately N150.0bn (US$1.3bn) employs about


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500,000 people and is responsible for up to 60.0 percent of production in theEconomic Community of West African States (ECOWAS) region. According toPMGMAN data, the local market of pharmaceutical producers (accounting foran estimated 35.0 percent of market size) is a highly fragmented one. Theindustry consists of 128 registered local pharmaceutical manufacturing

companies, 292 registered importers, 724 registered distributors as well as alarge number of unregulated manufacturing, importing and distributionbusinesses. The size of this unregulated market is difficult to accuratelyquantify as these operators hardly make returns to industry associations orregulatory bodies.

OpportunitiesVast potentials exist in the Nigerian and West African markets. The ability tosource materials locally will also make a big difference in increasing ourcompetitive advantage. Local production of pharmaceutical goods is a goodincome diversification strategy, however, the Federal Government needs to

sponsor local R&D in Universities and research institutes. The future is inresearch and development and if developed, this offers an avenue throughwhich to increase our global competitiveness and other areas of competitiveadvantage. Local manufacturers need to partner with local manufacturersand R&D institutions in order to promote the sector, thus making theindustry competitive, based on its present strengths.

ChallengesThe Pharmaceuticals sub-sector has sufficient capacity for meeting Nigeriasrequirement but capacity utilization in the sub-sector is low. Issues such asthe following have brought about this problem:

Distribution is a key challenge as the present systems are not standardizedor modern and hence not up to international standard. In addition mostgoods are still sold in the open market With respect to Herbal Manufacturers, very few meet set standards and thequality of their products is very poor Adulterated and counterfeit goods are flooding the market and infringingon the available domestic market There is an influx of chemicals and pharmaceuticals despite the ban onsuch products. This results from the penchant for importation of productsdespite the fact that a lot of similar made in Nigeria products meet similar

standards. Some drugs require significant upgrade and investment to be competitive The high cost of doing business as a result of lack of infrastructure, highfinancing charges, lack of some of the requisite raw materials andinefficient/obsolete technology is another challenge. Distribution is another acute problem. Due to size of country and lack of anadequate, modern and fully developed distribution network, drugs are stillsold in the open market, in gross contravention of best global practices.


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People who cannot afford quality medication tend to patronize quack/ sub-standard products. Environmentally sensitive policies are required in order to reduce the levelof environmental degradation from the industry.

ImperativesOur goal of being in the top 20 by 2020 can only be made by leapfroggingother economies and instituting drastic value change as opposed to simpleincremental growth. Hence the following are recommended: Smuggling and dumping of sub-standard products into the country need tobe stopped to ensure a level playing field for local manufacturers. Counterfeiting of drugs needs to be prevented by putting in place localIntellectual Property (IP) laws. This will provide legitimate manufacturers withadequate protection and encourage innovation, research and development. The poor state of infrastructure in Nigeria (especially with regards topower, water and transportation infrastructure) needs to be improved.

Relevant agencies, e.g. SON, NAFDAC etc., should work together to ensureNigerian pharmaceutical products are globally certified and meet WHOstandards. Sources of new market opportunity e.g. United Nations (UN) assistedprograms on health, and international donor organizations need to beutilized. These corporate bodies typically purchase drugs that are globallycertified and they spend millions of dollars annually to deploy health servicesto the poverty stricken regions of Africa. Participants in the industry need to be more forceful in dealing with thepublic sector. Lobbyists might help in this case. Relevant associations shouldemploy lobbyists who will speak with the Senate and House of

Representatives regularly to encourage them to see our point of view.* A private organization should be created to liaise with government and theprivate sector to ensure that the needs of the industry are met andconstantly on the front burner with the government.* MAN should also increase their ability to convince government on the needfor incentives and should reorganize itself for lobbying and advocacy toinfluence policies and their implementations. Government must pay consideration to this sector when developing theeconomic stimulus package. This will promote and encourage participation inthe sector. Government must institute a policy of inspections and verification to

ensure that incentives are granted to companies that qualify. People ororganizations that violate such policies should be amply sanctioned. Dependence on imported chemicals must be reduced and the chemicalindustry must be promoted to the aromatic phase as this will help Nigeriaattain the next level in chemical products manufacture.


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The Paints Industry in NigeriaAn OverviewThe Paint Industry in Nigeria has been in existence for a number of years andplays a major role in the economy. There is free entry and exit due to the

rather friendly capital required to set up a business. Additionally, operatingcosts are relatively low, thereby increasing the number and longevity ofplayers that exist. With over 1,000 operators, the industry can beconsidered as saturated. Inefficient regulatory monitoring has inevitably ledto the lowering of standards as fringe players produce more competitive sub-standard paints. Many new entrants get attracted to paint making businessdue primarily to inefficient regulatory practices as well as the attractivecapital requirement. This has inevitably led to the lowering of standards asmost of the fringe players produce sub-standard paints, albeit at relativelycheaper cost which enables them to sell at a lower price.

Over the years, the paints industry has experienced large scale neglect withcapacity utilization of not more than 40% due to unfriendly manufacturingvariables and heavy dependence on imported basic chemicals whileneglecting the nations abundant raw materials. The country thus losesbillions in foreign exchange annually through the importation of the rawmaterials. Innovation and R&D which are important characteristics of thesector as it is in developed nations, are still at the embryonic stage inNigeria. This is mainly due to lack of investment in R&D by industries in thissector.

A major characteristic of the industry is the existence of various tiers which

are determined by criteria such as market share, product quality, averageturnover and reputation. Industry players can be placed into three broadcategories: the first, second and third tiers. The first tier category consists ofmajor players which control a large share of the market and have been inexistence for many years. Some of the companies within this categoryinclude:

DN Meyer Plc

Premier Paints Plc

IPWA Plc

Nigerian German Chemicals

African Paints

Berger Paints

CAP Plc

There is a second category which consists largely of medium sized playerswith less control of market share. These companies are characterized byprivate ownerships with majority of the equity control in the hands of a fewindividuals. The third tier category comprises of companies with relatively


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larger customer patronage than their mid tiers peers (due to lower priceadvantage) but are restricted based on quality. Unlike the more successfulcompanies often regarded as premium paint makers, they concentratemore on emulsion (decorative).

Standardization of Paints in NigeriaThe Standards Organization of Nigeria (SON) is the major regulatory body forthe Chemicals and Paints industry in Nigeria. They have been challenged bythe sheer number of operators especially the informal paint manufacturersthat fall into the third tier of paint manufacturers. SON has only been able toset standards for household products and they conduct inspection of localpaint factories just twice a year with little or no consideration for leadcontent in paint while the status of input on imported brands is not known.

Only 15 paint companies in Nigeria have met SON NIS product standard, fourhave been ISO 9000 certified, while others are in the process of certification.Most of these informal paint manufacturers are not register with the PaintManufacturers Association of Nigeria which is the umbrella body of paintmanufacturers in Nigeria and as such their activities especially in the area ofstandards cannot easily be monitored.

In a recent survey carried out by the Division to ascertain the number oflocal Paints manufacturers in Abuja, it was revealed that there exists of over90 informal Paints manufacturers located around Abuja and its environs.There is, therefore, the need for these informal manufacturers to be

integrated into the formal sector for proper monitoring and regulations oftheir activities.

However, a critical attention in the raw materials standard for themanufacture of paints is necessary and this falls under the purview of theCouncil which has a mandate in the research and development of rawmaterials for the industrial development of the Country. Therefore, if thecouncil is able to set acceptable standard for the raw materials needed in themanufacture of paint, this will in turn translate to the production of qualitypaints that meets with international and acceptable standard.

Demand and Supply of Paints in NigeriaThere are over 1000 companies producing paint in the Country. The biggerones which are less than 10% of the total numbers of companies producingpaint controls about 50% of the market while the remaining market shareare divided among the rest. About 40Million litres of paints are producedand used in the country annually (PMA). In Nigeria, decorative paints have60% of the market share, Industrial has 20%, refinishing 10%, wood finishingand Automative have 5% each of the market share.


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Importantly also, the uncontrolled level of product adulteration, faking andmerchandising of paints with high nuisance value has eroded the marketshare business turnover. Total investment in the industry is about N15billionwith an installed capacity in excess of 150million litres of assorted paints per

annum. In 2008, 40 million litres was estimated to have been produced andutilized in the country.

Status of the Paints Industry in NigeriaThe nations paint industrial sub-sector is at the brink of collapse. Accordingto the Paint Manufacturers Association of Nigeria, which raised an alarm overthe dismal output of the industry in recent time. The association some ofwhose members have closed shop said that with the recent problems facingthem, the industry might collapse if corrective measures are not taken tocurb the situation.

Over the years, the contribution of this industry has significantly dwindled,mostly due to lack of raw materials. Over 70% of raw materials for theindustry, especially the film forming, lipid based components, are importedand not readily available. In order to address some of the raw materialschallenges of the Sector, the Raw Materials Research and DevelopmentCouncil, (RMRDC) is currently sponsoring three research and developmentprojects which are domiciled in the Department. It is believed that whenthey are concluded, they would impact positively on the industry. Theprojects include:

1. Development of Calcined Kaolin as Partial Substitute for

Titanium Dioxide in the Paint Making Industry. As at now,Titanium dioxide is imported 100% for paint manufacture in Nigeria.The R&D work, with the objective to substitute TiO2 with locallyavailable calcined kaolin, has been able to meet 10% substitution.

2. Studies on the Physico-Chemical Properties of Natural Rubberand Poly/Vinyl Acetate Blend. Paints produced from the blendscompared favourably with Premium Quality (PQ) paints in the market.

3. Preparation and Characterization of Alkyd Resin using RubberSeed Oil. This project has recorded some success, in that the alkyd

resin produced was used in formulating dark-coloured paints.

In furtherance to proffering solutions to the problems of the industry, RMRDCcarried out a survey to update the report of the previous surveys and allowthe public to gain new insight into the problems and prospects regarding thesituation of the Paints industry in Nigeria. This is with a view to obtainingdata/information which will assist the Council to articulate policies that will


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direct the action on the way forward for improving the situation of Paint sub-sector in Nigeria.

The survey was carried out in the six geopolitical zones of the country by

distributing questionnaires to existing companies in the sub-sector. It was a

means of monitoring and assessing the needs of the paint companies. Thequestionnaire contained the following information:

Installed Capacity

Effect of Government policies on the Industry

Challenges facing the industry;

Researches and Development activities carried out in last five years;

Award for excellence (innovation and use of local raw materials );

Raw Materials demand.

Challenges

1. Raw MaterialsMost manufacturers complained about the following:

i. Irregular supply and shortage of raw materials which limitcapacity utilization;

ii. Lack of suitable raw materials and difficulty in importationiii. Adulteration of raw materials when bought from local importers;iv. Lack of foreign exchange to purchase raw materials;v. Long lead time for imported raw materials

vi. High rate of inflation which affects raw materials costs.

2. InfrastructureRespondent companies during the survey complained about poor

infrastructure. In almost all factories visited, there are complaints of

persistent shortages in power and water supply, poor situation of most

roads and inadequate post and telegraphic communications facility as

well as information and statistics difficulties. The problem of

intermittent power failure, especially leads to downturn and equipment

breakdown. The transportation infrastructure is also dilapidated

leading to high transport cost. Consequently, most organizationsspend the bulk of their capital in providing these infrastructures.

3. Operation/TechnologyApart from inadequate provision of infrastructure, lack of appropriate

technology has grossly affected the growth and development of the

manufacturing industries. The current survey has identified the


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absence of the required technology and lack of beneficiating plants to

process the sourced raw materials. Although there are blending and

processing plants, most of them have been operating below installed

capacity, often time using obsolete technology and equipment.

4. Equipment and MachineryThere are simple equipment and machineries fabricated locally some

of which are substandard. Consequently there is increasing the down

turn and production costs in addition to low quality products. These

include mixing and grinding vessels and simple reactors. Modern Hi-

tech equipment is still sourced outside the country as well as its

installation and maintenance.

5. FinanceThe issue of finance (fiscal regulations and measures, taxes, tariffs,

interest rate, credit, dividend policy, etc) is crucial to the sustenanceand growth of the paint industry sub-sector. Most respondents

complained about multiple tax system by the States, and the present

value of the naira. Small and medium scale indigenous manufacturers

experience the difficulty of procuring some basic raw materials, having

to compete with the more financially stable multinationals who

sometimes determine the prices at which such raw materials are sold.

High borrowing interest rate in bank debts owed to local contractors

and the high tariff on raw materials were also cited as bottle necks.

Government should address these complaints and create more

conducive investment climate.

6. Manpower and TrainingMost operators in the paint industry sector are semi-skilled. They are

recruited and trained in-house for their specific purpose. Companies

have complained of relevant skilled manpower for employment and so

a lot of man- hour is lost in the process of training new operators.

There are many institutions in the country especially, the polytechnics

where adequate training could be provided if the relevant facilities are

available.

7. Access to Funding FacilitiesUnlike in other industries, many chemical and paint manufacturers donot have established relationships with financial institutions. This limitstheir ability for organic growth with many of the firms limiting theirfinancing sources to internally generated funds. Also, many of thecompanies in the sector are not publicly quoted and as such cannoteasily generate funds from the Nigerian capital market when needed.


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8. Concentration RiskMany producers run the risk of concentrating on a rather limitedincome stream with products such as paints, adhesives, wood finishesand other allied products making up a large portion of their product

portfolios. The companies are therefore not well diversified andtherefore cannot take advantage of risk spreading.

Table 1: Summary of Paint Companies that have Award for

Excellence

Award for Excellence Number of Companies

Companies that obtained

award

6

Companies that did not obtain

award

25

Companies that did not

respond

28


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Fig 1: Statistics of Companies that have Award for Excellence

Table 2: Summary of Paint Companies that Undertook Research

and Development Activities in the last five years

Research and Development

Activities in the Last Five

Years

Number of Companies

Companies that carried out

research

10

Companies that did not carry

out research

27

Companies that did not

respond

22


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Fig 2: Statistics of companies that carried out research in the

last five years

Table 3: Summary of Factors Militating Against the Paints

Companies Achieving Full Capacity Utilization

Factors Militating Against Full

Capacity Utilization in the Paints

Companies

Number of

Companies

Inadequate Capital 38

Energy supply problems 24

Dependence on imported raw materials 52

High cost of raw materials 22

Bank interest 8

Machinery and equipment 13

Poor quality of local raw materials 4

Economic situation/lack of 5


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incentives/government policies

Poor infrastructure 6

Market out let /Low patronage 15

insecurity 5

Not responding 6


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Fig 3 Statistics of Companies with Factors Militating against Full

Capacity Utilization


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Recommendations

Quality Control: The Standards Organization of Nigeria, (SON), is makingstringent efforts to maintain minimum standards for paint manufacturing.Such standardization should be intensified as it has served to improve theoverall quality level of paints in recent times.

Capital Adequacy: The bigger and more successful firms are the ones withmore ready access to financial capital either through internally generatedsources or via facilities from financial institutions and/or the capital market.Capital, if not readily available could lead to inability of producers to expandoperating and distributive capacities as well as meet up to the ever-growingdemand of the buying public.

Distributive Capacity: An effective and efficient distribution network is akey requirement for the success of paint manufacturers in Nigeria. Sincepaints are in high demand in virtually all areas of the country, it is pertinentthat the end product gets to the final consumer as at when needed.

The continuous importation of Paints has caused a reduction in jobs, taxesand revenue for the Federal Government in recent times. It is recommendedtherefore that Raw Materials Research and Development Council shouldstrive more in the area of paint raw materials development and encourageinvestors through stakeholders forum, Paints Summit, etc to invest in theproduction of Paints raw materials, and proffer solution to the challenges

being faced by the industry.


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APPENDIX 1

LIST OF PAINTS COMPANIES COVERED DURING THE SURVEY

S/

N

NAME OF

COMPANY

COMPANY ADDRESSES

1 Rainbow paints &

allied industries

Nig Ltd

B.A 23 Adagunodo, Imo quarters,

Osun State

2 Askar Paints Nig.

Ltd

Askar paints close off Eleyele-

eruwa road, Ibadan, Oyo State.

3 Seakat Global

Resources

Plot 16, Apete Industrial Area Papa

laogun, Oyo State.

4 Femo (West

Africa ) Limited

No. 2, Orita Road Eruwa,Oyo

State.

5 Finax Paint Co.

Nig. Ltd

Mbiabong Road Ipa Atai Street,

Akwa Ibom State.

6 Kingmos paints

(Nig) Ltd

Edemom I, Eket Uyo Road, Akwa

Ibom State.

7 Mystery Nig. Ltd No. 33 Udo Ekpo Street, AkwaIbom State.

8 Pacific Paints Ltd Suite U35, Gateway Hotel, Ota,

Ogun State.

9 Portland Paints &

Products Nig. PLC

4th floor, Elephant Cement House,

Alausa Ikeja, Lagos State.

10 Premier Paints

PLC

Km 2, Ifo Ibogun Road, Ifo, Ogun

State.

11 Betta Products

Ltd

77 Folagbade Street, Ijebu Ode,

Ogun State.

12 President Paints

Nig. Ltd

Km 15, Idiroko Road, Ogun State.

13 Mamek Opposite General Hospital Enugu -


23/56

International Ltd UKwu, Anambra State.

14 B Lux Industries

Ltd

No. 3 club Road, umuahia, Abia

State.

15 Nicen Industries

Ltd

Km 6, Old Asa/ Owerri road,

Osisioma, Abia State.

16 Saclux Industries

Nig. Ltd.

No. 10, Warri Street, Umuahia,

Abia State.

17 Korama Clover

Industries Ltd

Km 6, Old/ Owerri Road, Osisioma

Industrial layout.

18 Fideson Industrial

Company

T. I.C Federal Ministry of Science

and Technology, Industry Road,

Abia State.

19 Zelux Paints

Industry Ltd.

185B Faulks Road Aba, Abia State

20 Technetap Nig.

Ltd

No. 5, China/ Odo Lane, off

Kesiorlu Road, Rumuigbo Port

Harcourt, River state.

21 Rehoboth Holding Rumuaghalu village, pipeline

Area, Rivers State.

22 Sloak Paints Nig.Ltd

7, Dons Close, Orazi, PortHarcourt

23 Banex Industries

Ltd

15/17 Abimbola Street, Isolo

Industrial Estate, Lagos State.

24 Eagles Paints

(Nig) Ltd

Plot 5, Lateef Jakande Road,

Agidingbi Lagos

25 DN Meyer Plc Plot 34, Mobolaji Johnson Avenue

Oregun Industrial Estate, Alausa

Ikeja, Lagos State

26 Camel Paints &

Chemical Ind. Ltd

1, Yana Close Off Imudia Street,

Delta State

27 Akose (Nig) Ltd 1, Isah Road Ogwashi uku, Delta

28 Kris Painter & Coy No. 15, Nozomi Road, Kogi State


24/56

29 Danys Chemical Behind Beach Layout, Kogi State

30 Nulux Paint & Co. No. 365, 200 Housing Unit, Lokoja,

Kogi State

31 Katsina Paint

( Safana Branch)

Batsari Road (sabuwar Kasuwa)

Batsari Road

32 Katsina local Govt

Paint factory

Kabir Usman Road, No. 16 kabir

Usman Road, Katsina State

33 Alheri Chemical

Com (Nig) Ltd

Dikko Road Dutsinma, Katsina

State

34 Digital Paint (Nig)

Ltd

No. 4, new Market Timbershed

Gusau

35 Katsina Paint

Cottage Industry (

Gambarawa)

iBb way kofar Guga, Katsina

State

36 Katsina paint

Chemical & chalk

( Individual

WTC Road Katsina, Katsina State

37 Katsina Paint

(Funtua Factory)

Zaria Road, Funtua Town, Katsina

State

38 Katsina Paint

( Mashi Cottage

Industry)

Mani Road, Mashi Town, Katsina

State

39 Katsina Paint

Cottage IND.

( Matazu L.G.A)

Musawa Road Matazu Town,

Katsina State

40 Luck Paints No. 27, Challawa Hausa/ Ibo Road,

Kano state

41 Jisal paints Behind TIC, Farm Centre, Kano

State

42 Gaskiya General

Marchants

119, Murtala Muhd Way, Kano

State


25/56

43 Fatima Paints Ltd France Road, S/Gari, kano State

44 Sky Paints 17, Murtala Muhd Way, Kano

State

45 Asilux Paints Off Hadejia Road, Yankaba, Kano

state

46 Freedom Paints Mallam Kato Motor Park, Kano

State

47 Brilliant Paints Ltd Aminu Kano Way, Kano State

48 Dove Paints Gwammaja Quarters, Opp. DOH,

Kano State

49 Senate Paint Shops No. 117, Murtala Muhd

Way, Kano State

50 Fruitful Paint

Company

L33 Mallam Madori Rd. Old/

Panteka, Kaduna State

51 Small Scale IND.

& Farmers

Association

29, Water Depot Mallam Madori

Road, Old Panteka Market, Kaduna

State

52 Century

Merchants &

Chemicals Nig.Ltd

No. 10, Gamagira Road By Nnamdi

Azikiwe, Kaduna State

53 Viccalux Paint No. 1, Bida Bidi Zaina Road Jos, Jos

North Plateau State

54 Neatlux Paint &

Chemical Industry

42, Church Street, JOS. Jos North

Plateau State

55 Diamond Paint

Nig. Ltd

No. 10, Tafawa Balewa Street Jos,

Jos North Plateau State

56 Swan Paint Nig.

Ltd

Bauchi Road Opp Dogon Agogo,

Jos North. Plateau State

57 Kokamas IND.

CO. Ltd

25, grace Ball Road Eket, Akwa

Ibom

58 Domk Services No. 4 Emco lane off Nwamba road


26/56

United Nigeria Uyo, Akwa Ibom

59 Caltex Paint No information

APPENDIX II

S/

N

NAMEOF

ORGA

NISAT

ION

RAWMATERI

ALS

QU

A

N

T

I

T

I

E

SR

E

Q

U

I

R

E

D

A

TF

U

L

L

C

A

P

A

CI

T

Y

(

K

G

AC

T

U

A

L

QU

A

N

T

I

T

I

E

S

US

E

D


27/56

)

20

06

2

0

0

7

2

0

0

8

2

0

0

9

1. DN

MEYE

R PLC

ALAUS

A

IKEJA

Titanium

dioxide

3

5

0,

0

0

0

1

6

0,

0

0

0

Clacium

carbonat

e

1,

2

0

0,

0

0

0

9

7

7

1

0

0

Texanol 4

0,

0

0

0

2

3

8

0

0

Xylene 6

5,

0

0

0

4

0

8

3

5

Ealcarb 6

0,

00

0

5

8

00

0

Almmex 2

0,

0

1

2

0


28/56

0

0

0

0

Araldite 2

0,

00

0

1

4

30

5

Driers 2

5,

0

0

0

1

6

7

0

7

Resins 1,

5

0

0,

0

0

0

8

6

6

8

0

0

2 KINGM

OSPAINT

S

(NIG)

LTD

UYO

AKWA

IBOM

STATE

Calcium

carbonate

3

00

0

5

00

0

Natrosol 90

0

16

0

0

Titanium 9 1


29/56

dioxide 0

0

8

0

0

PVA 18

0

0

18

D

r

Deforme

r

1

2

6

0

1

4

D

r

3 ZELUX

PAINT

S IND.

LTD

ABA-

ABIA

STATE

Titanium

dixoide

1

4

1

2

Resin 1

0

8

Red

oxide

7 6

Kaolin 1

5

1

4

4 PACIFI

C

PAINT

Calcium

carbonat

e

7

9

2

13

2

1

1

8.

1

0

5.

7

9.

2


30/56

S LTD

OTA

OGUN

STATE

0

0

0

2 6

Kaoline 63.

4

m

t

10.5

6

9.5

0

8.4

5

6.3

4

Titanium

dioxide

2

6.

7

2

mt

21

.1

2

1

9.

0

1

6.

9

0

1

2.

6

7

Ammoni

s

4.

7

5

m

t

0.

79

0.

7

1

0.

6

3

0.

4

8

Sedd oil 3

1

2.

8l

t

0.

71

0.

7

1

0.

7

1

0.

7

1

PVA 1

5

8.

4

m

t

26

.4

2

3.

8

2

1.

1

1

5.

8

Bioxides

(actides)

4.

7

5

2

m

0.

8

0.

7

0.

6

0.

5


31/56

t

5 FEMOL

(WEST

AFRIC

A)

LIMITE

D

ERUW

A OYO

STATE

PVC

Resin

2

1

6

0

23

28

1

9

6

8

1

8

1

2

1

5

8

4

Calcium

carbonat

e

9

2

0

87

3

8

2

8

6

7

9

5

9

4

Dioctyl

phthalat

e

2

1

6

0

0

23

28

0

1

9

6

8

0

1

8

1

2

0

1

5

8

4

0

Kerosen

e

4

50

0

0

48

500

4

60

0

0

3

77

5

0

0

2

95

0

0

PVA

Resin

7

5

0

0

0

14

40

0

1

3

0

0

0

5

6

7

0

4

9

0

0

Titanium

dioxide

7

6

0

0

0

11

20

0

1

1

0

5

0

5

1

7

5

6

0

2

5


32/56

Ammoni

a

1

8

5

24

0

2

0

0

1

1

0

1

3

0

Formaldehyde

36

3

720

60

0

45

0

27

0

Aluminiu

m

Hydroxid

e

3

7

0

72

0

6

0

0

4

3

0

2

9

0

6 ASKAR

PAINT

S NIG.

LTD

IBADA

N OYO

STATE

Titanium

dioxide

2,

0

0

0

N.

A

N

.

A

N

.

A

Yellow

oxide

2

0,0

0

0

50

,000

4

0,0

0

0

3

5,0

0

0

3

5,0

0

0

Acrylic

styrene

9,

6

0

0

N.

A

N

.

A

N

.

A

N

.

A

Redoxide 5,4

0

0

N.A N.

A

N.

A

N.

A

Mixed

drier

1

6

N.

A

N

.

N

.

N

.


33/56

0 A A A

7 EAGLE

S

PAINT

S NIG.

LTD

IKEJA

LAGO

S

STATE

Titanium

dioxide

N

.

A

N.

A

N

.

A

N

.

A

2

0

0,

0

0

0

Polyvinyl

acetate

N

.

A

N.

A

N

.

A

N

.

A

4

5

0,

0

0

0

Calcium

carbonat

e

N

.

A

N.

A

N

.

A

N

.

A

1

5

0

0

0

Kaolin N

.

A

N.

A

N

.

A

N

.

A

2

5

0,

0

0

0

Actinide N

.

A

N.

A

N

.

A

N

.

A

2

5,

00

0

Deforme

r

N

.

A

N.

A

N

.

A

N

.

A

8,

0

0


34/56

0

8 MYSTE

RY

NIG

LTD

UYO

AKWA

IBOM

STATE

Calcium

carbonat

e

3

2

0

0

30

00

4

5

0

0

6

0

0

0

1

8

7.

5

Titanium

dioxide

8

0

0

75

0

1

6

0

0

2

0

0

0

2

5

0.

0

Pigment

s

9

0

0

12

00

1

7

0

0

2

0

0

0

2

2

2.

2

Natrosol 1

2

d

r

10

dr

1

8

d

r

3

0

d

r

2

3

3.

3

Ammoni

a

1

2

d

r

10

dr

1

8

d

r

3

0

d

r

2

5

0.

0

Deforme

r

1

0

d

r

10

dr

1

6

d

r

2

0

d

r

2

0

0.

00

9 NICON

INDUS

TRIES

LTD

OSISI

Titanium

dioxide

- 15

m

t

1

5

m

t

1

5

m

t

1

0

m

t


35/56

OMA

ABIA

STATE

Colouran

ts

1

5m

t

13

mt

1

2m

t

1

2m

t

8

mt

Resin 3

0

m

t

20

m

t

1

7.

5

1

0

m

t

1

0

m

t

Bioxide 5

m

t

4

m

t

3

m

t

1.

5

m

t

1.

5

m

t

Anti

fungi

2.

5

2

m

t

2

m

t

1

m

t

1

m

t

Alkyd 2

0

t

18

m

t

1

6

m

t

7.

5

m

t

7.

5

m

t

10 CAME

L

PAINT

S &

ALLIE

D IND.

(NIG)LTD

AGBO

R,

DELTA

STATE

Calcium

carbonat

e

5

0

t


36/56

Natrosol 2

5

t

Titanium

dioxide

1

2t

N A

Kaoline 5

0

0

t

Troxel

TN,

Pamotol

1

2

t

PVA

(557)

pigment

s

1

3

0

0

t

11 RAINB

OWPAINT

S &

ALLIE

D NIG.

(NIG)

ILESA,

OSUN

STATE

Resins 3

0

15 2

0

2

0

2

0

Acronal 50 20 30 30 30

Titanium

dioxide

1

5

5 5 7 7.

5


37/56

Additive

s

5 1 1.

6

2 2.

3

Calcium

carbonat

e

1

0

0

60 6 6 6

Kerosen

e/white

spirit

8 5 5 6 6.

5

12. CENTURY

MERC

HANT

S

CHEMI

CAL

NIGER

IA LTD

KADU

NA

RutileTio2

3.2

7

Kronos,

Tiona

6

1

3

Permetol

DF19/EPl

2.

7

N

.

A

Permetol35/k14 2.7

Natrosol 1.

4

9

Elentis 1.


38/56

4

9

13 KATSI

NA

PAINT

COTTA

GE

IND.

MATA

ZU

KATSI

NA

STATE

Solvent 3

0

0

1

6

8

1

6

8

Kaoline 3

0

0

1

6

8

1

6

8

Calgone 1.

5

0.

8

4

0

0.

8

4

0

PVA 50

33

33

Natrosol 3.

0

1.

6

1.

6

Ammoni

a

1.

5

0.

8

4

0.

8

4Dolomite 2.

5

0

1

3

4.

4

1

3

4.

4

Calcium 2 1 1


39/56

carbonat

e

0

0

1

7.

6

1

7.

6

Aluminiu

msilicate

1

5.0

8.

4

8.

4

Marble

dust

3

0.

0

1

6.

8

1

6.

8

Titanium

dioxide

1

5.

0

8.

4

8.

4

14 KATSI

NA

PAINT

(MASH

I

COTTA

GE

INDUS

TRY)MASHI

KATSI

NA

STATE

Calgon 1.

6

0.

5

6

0.

5

6

Titanium

dioxide

3

2.

0

1

1.

2

1

1.

2

0

Kaoline 4

0

0.

0

0

1

4

0.

0

1

4

0.

0


40/56

Calcium

carbonat

e

1

2

0.

0

1

6

8.

0

1

6

8.

0

PVA 80.

0

28.

0

28.

0

Marble

dust

8

0

0.

0

2

8.

0

2

8.

0

Natrosol 8.

0

2.

8

2.

8

Ammoni

um

4.

0

1.

4

0

1.

4

0

P44 - - -

Kerosen

e

4.

0

1.

4

1.

4

0

Water 8.0

2.8

2.8

0

15 KATSI

NA

PAINT

CHEMI

CAL &CHALK

(INDIV

IDUAL

)

KATSI

NA

Calcium

carbonat

e

3

0

0

1

4

4

1

8

0

2

0

0


41/56

Kaoline 1

5

0

5

0

7

5

9

0

Calgone(kg)

10

0

20

35

50

Natrosol 1

0

2 4 7

PVA 2

5

0

0

1

0

0

0

1,

5

0

7

5

0

0

2

4

0

0

Ammoni

a

2

0

0

0l

5

0

0

7

5

0

1

0

0l

Formalin

e

2

0

0

0l

5

0

0

7

5

0

1

0

0l

Solvent - - - -

Yellow

oxide

- - - -

16 KATSI

NA

PAINT

(FUNT

PVA 3

3

6

0

3

3

6

0


42/56

UA

FACTO

RY)

FUNTU

A

KATSI

NA

STATE

0 0

Natrosol 8

4

0

0

8

4

0

0

Ammoni

a

8

40

0

8

40

0

Calcium

carbonat

e

N

.

A

N

a

A 1,

1

7

6,

0

0

0

1,

1

7

6,

0

0

0

Kaoline 5

8

8,

0

0

0

5

8

8,

0

0

0

Dolomite 8

4

0

0

8

4

0

0


43/56

Yellow

oxide

8,

4

0

0

8,

4

0

0

P44 67

2,

0

0

0

67

2,

0

0

0

Marble

dust

17 KATSI

NA

PAINT

COTTA

GE

INDUS

TRY

(GAMB

ARAW

A)

KATSI

NA

Kaoline 1

0

0

60 6

0

6

0

6

0

Ammoni

a

1

2

5

0

1

0

0

0

1

0

0

0

1

0

0

0

Caco3 2

00

1

20

1

20

1

20

Dolomite 2

0

0

1

2

0

1

2

0

1

2

0


44/56

Formalin

e (P44)

1

2

5

0

1

0

0

0

1

0

0

0

1

0

0

0

Nitrosole(thicken

e)

12

5

0

10

0

10

0

0

10

0

0

Titanium

dioxide

1

2

5

0

1

5

0

1

5

0

1

5

0

Oxide 2

5

0

1

5

0

1

5

0

1

5

0

PVA 2

5

0

1

5

0

1

5

0

1

5

0

Calgone

PT

2

5

0

6

0

7

0

6

0

Kerosen

e

1

0

0

6

0

0

0

6

0

0

0

6

0

0

0

Water

(solvent)

1

0,

0

0

0

18 KATSI

NA

LOCAL

GOVT.

Kaoline 1,

2

8

6

1,

2

8

6


45/56

PAINT

FACTO

RY

KATSI

NA

Kerosen

e

1,

2

8

6

1,

2

8

6

Titanium

dioxide

N

.

A

N. A 5,

6

2

5

5,

6

2

5

Calgone

PT

4,

5

0

0

4,

5

0

0

Colours 2,

5

0

0

2,

5

0

0

Natrosole

6,5

0

0

6,5

0

0

Ammoni

a

2,

5

0

0

2,

5

0

0

Formaline 2,5

0

0

2,5

0

0

PVA 5,

5

0

5,

5

0


46/56

0 0

Marble

dust

4,

5

00

4,

5

00

Generat

or

4,

5

0

0

4,

5

0

0

19 KATSI

NAPAINT

(SAFA

NA

BRAN

CH)

SAFAN

A

KATSI

NA

STATE

Kaoline 3

0.0

1

3.0

PVA 1

5.

0

6.

7

Dolomite 1

5

0.

0

5

3.

7

Titanium

dioxide

1

2.

0

3.

4

Calgone 1.

0

0.

3

3


47/56

6

P44 2.

0

N

.

A 0.

6

7

Natrosol

e

2.

0

0.

6

7

Ammoni

a

1.

0

0.

3

4

Solvent 1

0

0.8

3

3.

6

Marble

dust

1

4

1.

0

4

7.

0

20 BETTA

PRODUCTS

LTD

IJEBU-

ODE

OGUN

STATE

N

.A

21 SLOAK PAINT

S NIG

(LTD)

ORAZI

PH

Caco3(dolomit

e)

60

38 49

41

51


48/56

Binder

(Acrylic)

2

5

0

N.

A

2

0

0

2

0

0

2

1

0

22 DIGIT

AL

PAINT

NIG

LTD.

GUSH

U

Kaoline 1

5

Caco3 6

0

0

Titanium 1

8

0

b

a

g

s

PVA 36

0

0l

it

.

Yellow

peace

N

.

A

Sodium 6

0

0

0

N

.

A

Meg N

.


49/56

A

Deforma N

.

A

Marble

dust

N

.

A

Nitrosol N

.

A

Formalin

e

N

.

A

23 FINAX

PAINT

CO.

NIG

LTD

UYO

AKWAIBOM

Cacium

carbonat

e

3

2

0

0

16

00

3

5

0

0

4

0

0

0

5

5

0

0

Natrosol 9

0

0

60

0

9

0

0

1

2

0

0

1

7

0

0

Titanium

dioxide

9

0

0

80

0

1

2

0

0

1

5

0

0

1

8

0

0

Deforme

r

1

1

d

m

s

5d

r

1

0

d

r

1

5

d

r

2

0

d

r


50/56

PVA 8

d

m

s

4d

r

1

0

d

r

1

2

d

r

1

5

d

r

24. MAME

X

INTL

LTD

ENUG

WU-

UKWU

ANAM

BRASTATE

Kaoline 2

4,

0

0

0

Marble

dust

6

0,

0

0

0

Alkyd

resin

6

4

8

0

N A

Acrylic

polymer

1

0

0

0

PVA

Polymer

2

0

00

Natrosol

(thickner

)

3

0

0

0


51/56

Oxides

of

Metals

3

0

0

0

25 KORAMA

CLOVE

R

INDUS

TRIES

LTD

Calciumcarbonat

e

24

0

0

0

1000

12

0

0

0

15,

0

0

0

20

0

0

0

Marble

dust

2

1

00

0

10

00

0

1

1

00

0

1

4,

50

0

1

8

00

0

Red

oxide

pigment

9

0

0

0

40

00

4

5

0

0

6

0

0

0

7

5

0

0

Titanium

oxide

9

0

0

0

40

00

4

5

0

0

6

0

0

0

7

5

0

0

0

China

clay

2

0

0

0

0

12

00

0

1

3,

5

0

0

1

5,

5

0

0

1

8

0

0

0

Colanylblue

paste

70

0

0

1800

2,3

0

0

3,5

0

0

5,5

0

0

26 Portla

nd

Resin 8

4

50

4,

6

5

7

5

8

4


52/56

Paint

&

Produ

ct Nig

PLC

0,

0

0

0

00

0

5,

0

0

0

6,

0

0

0

0,

0

0

0

Calcium

Carbona

te

6,

3

0

0,

0

0

0

3,

78

0,

00

0

4,

9

1

4,

0

0

0

5,

6

7

0,

0

0

0

6,

3

0

0,

0

0

0

Pigment

Titaniumdioxide

4

20,

0

0

0

25

2,00

0

3

27,

6

0

0

3

78,

0

0

0

4

20,

0

0

0

Natrosol 5

0,

0

0

0

30

,0

00

3

9,

0

0

0

4

5,

0

0

0

5

0,

0

0

0

C. F. X 3

0,

0

0

0

18

,0

00

2

3,

4

0

0

2

7,

0

0

0

3

0,

0

0

0

D. F. X 1

8,

0

0

0

10

,8

00

1

4,

0

4

0

1

6,

2

0

0

1

8,

0

0

0

Kerosine 1

8

0,

0

10

8,

00

1

4

0,

4

1

6

2,

0

1

8

0,

0


53/56

0

0

0 0

0

0

0

0

0

Toluene 7

2,

00

0

43

,2

00

5

6,

16

0

6

4,

80

0

7

2,

00

0

Carbon

Black

1

2,

0

0

0

7,

20

0

9,

3

6

0

1

0,

8

0

0

1

2,

0

0

0

Texanol 6

0,

0

0

0

36

,0

00

4

6,

8

0

0

5

4,

0

0

0

6

0,

0

0

0

27 Koka

mere

Indust

ry Co

Ltd

Calcium

carbonat

e

1,

0

0

0,

0

0

0

1,

50

0,

00

0

2,

0

0

0,

0

0

0

1,

5

0

0,

0

0

0

1,

5

0

0,

0

0

0

Titanium

Dioxide

Natrosol

Bioxide

Genapol

Deforme

r


54/56

NA = Not Available

It was observed from those that responded that approximately 1,682,000kg

of calcium carbonate is required at full capacity annually in the paint

industry while 1,456,170kg of titanium dioxide is required;.1,617,400kg of

kaolin

APPENDIX III

List of Paint Companies List of Research and

Development Activities Carriedout in the Company in the Last

Five Years

Seakat global resources 1. Sun resistance paint.2. Texture of art dolopaint.

Betta Products Ltd 1. Instant powered emulsion


55/56

paint.

Technotap Nigeria limited 1. Trying to know the length of timethe paint can last out door forcolour.

2. The type of paint most durableexterior.

3. The coverage of paint relative tocost.

4. Consumer behavior of quality vsprice.

5. Colour preference and itsrelationship to persons/areas.

6. Effects of fungus, bacteria, mouldson the fence relative to antifungus.

Sloak paints Nigeria (ltd) 1. Stability test on raw materials.2. Improvement of sheen of glossyemulsion.

3. Replacement of kaolin withdolomite.

4. Effect of aluminum silicate onwhite emulsion paint.

Korama clover industries (ltd) 1. Use of cellulose extract fromcassava as thickening agent inpaint production.

2. Use of locally made dyes as

colorants in paint production.3. Research and development ofHITECH three components coatingsystem.

4. Research and development ofwater based gloss paint

5. Research and development ofmarine coating.

6. Use of water (cheaper solvent) inoil based system.

Eagle paints (Nig) Ltd 1. Development of anti fungi, biocide

for salty pron topographicareas of Lagos.

2. On going developmental efforts forpigment extender.

DN Meyer Plc 1. Poly urethane high gloss paint water based.

2. Epoxy pigmented paint.Diamond Paint Nig Ltd 1. Improvement of paint quality.


56/56

Swan Paint Nig Ltd 1. Improvement of paint quality.

Documents

Marinho-Chemical Sector Review