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We overpay VAT to the government as manufacturers — MD, Fundamental Technology Limited



Tijanee AbdulGafaar Adeneye, a Fellow of Institute of Chartered Chemists, is the current Chairman, Chemicals Society of Nigeria, Lagos chapter, he is also the MD/CEO, Fundamental Technology Limited, the producers of Funda Paints: a rising on-demand coating Company with diverse subsidiaries. He bagged a Master in Business Administration from Ladoke Akintola University, Final Diploma in Chemistry and Biochemistry upstream from the University of Lagos and also studied Science Laboratory Technology in the now Moshood Abiola Polytechnic. In this interview with Omolola Adeyanju, he enumerates how the coating industry is travailing under the current economic downturn and ever increasing duty payment of manufacturers.

What conceptualised the name Funda?

When I joined the paint industry in 1993 at International Paint for West Africa (IPWA), we were taught the fundamental principles of paint making. Even though as at then I never knew I would become a paint manufacturer. I noted that whatever you want to do in life there are fundamental principles and steps to be followed, so all that gave me inspiration towards the name FUNDA when I decided to establish this firm.

What can you cite as the major challenges facing the coating Industry?

There are many but to cite a few I will highlight free entry as one. Many untrained people have delved into the production of paints. A professional colleague and I were discussing it recently and she said the paint industry has failed. I opposed that and gave tangible reasons why she shouldn’t generalize his submission.

This submission was based on her witness of low quality products used on a majority of projects round the country. A person who buys a low quality paint and hasn’t gotten hold of the quality paints manufactured in Nigeria will also generalise. Fine, people opt for cheaper products but they don’t bother about the quality and this challenge is birthed from the trend of free entry and no control. Hence, anyone can go on-site, mix anything of his choice and get a poor quality but cheap paint for public use.

We also cannot overemphasise economic challenges such as the high cost of materials, energy, duties on manufacturers, to name a few.

How have government policies affected your firm and which of the policies has affected this industry the most?

Despite our business falling under the small scale category, government doesn’t consider the levels of businesses. If you want businesses to grow, there ought to be certain opportunities or things that should be put under consideration for small businesses to leverage on for growth such as standards and waivers in some areas of operations.

Policies affect all manufacturers at different levels.  The policy on VAT is one that should be looked into. If you buy materials you pay VAT, you calculate your own VAT on your sales and try to pay the net value. Presently, the FIRS is charging you to get the VAT of other companies (suppliers) before they can deduct it from your VAT. It means where the suppliers have failed to remit the deducted VAT you will be responsible to effect another payment to the government again. Also if you don’t pay at the stipulated date you will have to pay a fine of N50,000 a day after the due date and subsequent monthly charges of N25,000 if you default payments.

Therefore, for small businesses that are trying to be patriotic, we realise that we are deep into our capital gain to pay the government while the government is being overpayed. This is one of the things the government needs to look into.

 Regarding raw materials sourcing, last year the Raw Materials Research and Development Council (RMRDC) revealed that they sourced out the production of carbonate in Nigeria and we understand that the five basic elements for producing paints are imported. How do you think we can improve in research and sourcing of raw materials for the industry in Nigeria?

Yes, the five major components of paint are not produced in Nigeria, only calcium carbonate is produced in the country and the volume of it is still very limited that it cannot meet the demand of the market hitherto, a bulk of calcium carbonate is yet being imported.

In respect to importation, since we now have a refinery in Nigeria for our crude oil, if the refinery is not centered on fuel production alone, it can be used to transform other components of the crude oil into materials for industrial use. Solvent, for instance, also can be gotten from crude oil.

Your opinion on Nigeria paint Industry in the Africa Continental Free Trade Area (ACFTA)?

Many paint manufacturers still buy materials from third parties, I mean the suppliers, so the suppliers get benefits more than the manufacturers. We can only start competing well enough in ACFTA when the issue of importation and other factors earlier mentioned are resolved.

What are your expectations for the Paint Manufacturers AGM this year?

As it has always been; Training of members, presentation of reports and probably election of new excos. It is believed that a new concept that will project paint manufacturers will be discussed during the AGM.

What solutions would you proffer in light of present economic downturn, as it concerns the paint industry? 

We just had a change of government, hence, we can’t be too sure of what it will yield. Nigeria’s economy is driven by a global economy so in one way or the other, the effect will still surface. We are waiting on the newly appointed ministers. Let’s see how their policies and strategies will incite  change, and I trust that the Manufacturers Association of Nigeria will not stop giving their opinions on the way forward because we are more powerful collectively.

What is your advice to start-ups in the paint industry and people who have plans to venture into the coating business?

Whatever business you wish to venture into, ensure you get a vast knowledge of it first. The problem we have today is that majority of the people going into businesses today do not want to go through processes. In life there are processes, even God created processes for us before we came into this world and while in it. If you decide to boycott the processes you may likely cause havoc. If you come to learn from us, you will have to be acquainted with the theory and practicals, which is of course, not a day’s job.

What is your scope towards an expansion of Funda coatings? 

We are using our technical ability to woo clients. We have been awarded big contracts, we are producing for clients who are contractors to GTbank, Airtel. Our paint was used for the majority of LASUTH since 2019, and is still standing. This is the same for many other big brands we have worked with. Since we give quality, we are in for a lift in this industry.

Paint manufacturers versus wallpaper manufacturers. Is the wallpaper a discouragement to the paint industry? Will wallpapers phase out painting with time?

It is a business idea and a good innovation. Yes, it has, in a sense, taken a market share of paints. However, wallpapers can’t be used solely. Even for interiors there are so many places that wallpapers can’t be used, only paints. That is why as manufacturers, we don’t base our production on decorative products alone, we have industrial paints, marine and every other aspects of paints.

I believe that as a technical person you must be diversified in your innovations so we can reach any sector with our products. Notwithstanding, the wallpapers and aluminum bonds are taking the market share of the paint industry, the PVC, as well as tiles also have their share from the paint market.

We in the paint industry should not be complacent on the level we are now, we have to keep innovating. Most people use wallpapers to satisfy an urge for a combined pattern of decoration, don’t forget that people will also opt for that which will last longer and the crackle effect paint can fit into this to satisfy our clients perfectly, it can be used as against using the wallpaper. Some people also prefer the paint called stucco which is like a glassy paint with colourful design. So all these are birthed from creative innovations to best fit into our clients desire

On manufacturing viz-a-viz the application of Paints?

The application of paint is also a technical skill that needs to be learnt. As an applicator, you may not necessarily know the chemicals or the means of producing a paint but you must learn the skills as well as surface preparation technique so you don’t make a mess of a good product. For instance, when you want to coat a room with a switch box, you need to tape the box, if you are painting a room with frames you must tape the edges of the frame to give a good finish and so many other things to be learnt when applying paints.

What is your word to the government in respect to the paint industry?

People should be discouraged from importing finished paints into the country and encouraged to patronise our local brands. We keep complaining about increase in dollar but thatis part of the challenges that we are placing on our naira.

If we don’t patronise what we have, no one will patronise it for us. If the government wants to paint any of their structures or projects and they insist on using Nigeria made paints, it will also encourage the local manufacturers.

I remember when I joined the paint industry, PTF wanted to paint their projects and they insisted and clearly specified that they must use Nigeria made paints and such was used all through. Today, however, many brands when they have a project, they tell us they are importing the paint which will be used.

In addition, the duties on materials too should be reduced so that our paints can be affordable, not for paint manufacturers alone but for all manufacturers. At least they do waivers for some imports of raw materials. So if not total waivers, we can have a reduction of duties.


Forex speculators are hurting the economy — ASHON Chairman



In this interview, the Chairman, Association of Securities Dealing Houses of Nigeria (ASHON) and a Fellow of Chartered Institute of Stockbrokers (CIS), Mr Sam Onukwue, spoke on a range of issues that need to be addressed to boost activities in the Nigerian capital market, including how the government can strengthen the value of the Naira.

Why do you think the issue of leveraging the capital market to fund infrastructure by the government has continued to be a focal point of discussion in the financial market ?

The capital market remains one of the best sources of medium and long term finance for the government to bridge infrastructure gap in Nigeria. We at ASHON have always canvased that government at all tiers should take advantage of the market to float fixed income securities to fund infrastructure projects. The continuous oversubscription of SUKUK Bonds signifies investors’ appetite for safety of their capital in a recessionary period.  The capital market has absorptive capacity to fund most of the infrastructure and this will reduce the government’s dependent on borrowing.

ASHON has just held its Annual General Meeting (AGM), can you provide an insight ?

It was a very successful Annual General Meeting. The Governing Council, through my Statement, informed our Members, the series of ASHON’s engagements with some critical stakeholders as part of our market development functions. The Council and Management, were commended on the prudent management of resources, especially, the downward trend in the budget for transportation, despite the hike in the pump price of petroleum  and allied products. We shall continue to collaborate with other stakeholders to build investor confidence in the market.

What is uppermost in your mind with the current state of economy in Nigeria?

The Federal Government should address the macroeconomic vagaries such as exchange rate volatility and rising inflation rate. These amongst others have   continued  to  affect business decisions. We have limited sources of foreign exchange. The Federal Government has announced its plan to boost the supply side. The implementation should be accorded utmost urgency. The concern is the source of the demand pressure  for forex. Is it from genuine business people and organisations or speculators? Speculators are hurting the economy by buying Dollar to keep as a store of value for speculative purposes. Government can reverse the ugly trend by addressing the supply side. If there is stability in the exchange rate, it will have multiplier effects on other economic activities  and boost the value of the Naira. ASHON has at several times urged the federal government to tap into an array of investment in the commodities space to generate employment opportunities, boost export trade and grow the Gross Domestic Products (GDP). Solid mineral is a cash cow. Government should direct its searchlight  to the sector to take control of the revenue and protect the revenue from going into private pockets.

What is the nexus between the Capital Market and the economy?

At the basic level, the capital market, especially the stock market, is the barometer that gauges the economy. Its array of statistics show the direction of an economy. This is why it is often said that there is a linear relationship between the development of a capital market and the economy. The capital market provides a platform for the government to mobilise long term funds to finance infrastructure. Companies utilise the market to raise funds for a series of projects while retail and institutional investors need the market for capital formation and other benefits. Studies have shown that there is correlation between the development of an economy and its capital market.

What should be the pre-occupation of ASHON in the rapidly changing dynamics in the market?

ASHON has always been at the forefront of ensuring that its members operate professionally while the Association collaborates with the capital market regulators, operators and other stakeholders in the ecosystem. Our members played pivotal roles during banks’ recapitalisation and demutualisation of The Exchange among others.

How would you respond to the new short term measures that the Committee on Tax Reform has announced to make Nigeria a tax-friendly environment ?

The Tax Reform Committee, chaired by Mr Taiwo Oyedele has come up with some laudable quick wins to address the nagging issues of taxation, militating against investments in Nigeria. The fact is that while official taxes in Nigeria are 60, people contend with over 200 different types of taxes. The Committee’s recommendations will go a long way in restoring some level of sanity into taxation in Nigeria and that will enhance the government’s revenue drive from the sector without inflicting pains on the majority of Nigerians. We are all awaiting  the implementation. ASHON had at different fora canvassed the need to take a second look at Capital gain Tax (CGT) to reduce transaction cost and attract all cadres of investors into the capital market. This is consistent with the need for the government to implement market-friendly policies to encourage more companies to seek quotation on the securities markets. A conducive tax environment will make our market more competitive .

Would you encourage investors to take a position in the market at the moment?

Regardless of the state of uncertainties in the global financial markets, investors that take sound investment advice have opportunities for superior return on investment on a consistent basis. Many investors often lose huge amounts of money by relying on their own intuition or consulting unqualified investment advisers. Investment in any asset class requires a lot of variables, including an investor’s investment objective, risk tolerance, sources of funds and time horizon, amongst  others. Investment is a trade-off of risk and return, whereby an investor aspires to post the highest return at the lowest risk. This is achievable if proper analysis is done by certified investment advisers. Our members shall continue to engage investors on the need to work closely with stockbrokers for timely investment advice.

What is your advice to investors on risk management?

There is no asset without a risk element. The government bond is classified as risk-free, yet, it cannot be insulated from inflation risk, exchange rate risk and a host of others. What we are saying is that risk can be mitigated to ensure superior returns. In every risky situation, there are opportunities. The same applies to investment. It is all about understanding and deploying appropriate investment strategies. It’s not a game of one-size-fits-all. Contacting a professional investment adviser is in itself a risk-aversion measure. Investment professionals profile their clients as a precondition for advice on the appropriate investment opportunities.

How would you describe the relationship between the government and the stockbrokers?

We are partners in progress but the government can do a lot more by taking inputs from Stockbrokers whenever policy issues on the financial market are initiated. We expect a more cordial relationship with the appointment of two of our members at the heart of the economy- The Minister of Finance and Co-ordinating Minister of the Economy and Mr Yemi Cardoso, the new Central Bank (CBN) Governor. Stockbrokers play major roles in the capital market and they are the most visible operators. Every stockbroker is certified by the Chartered Institute of Stockbrokers (CIS) while at the corporate level, we have ASHON of which I am the Chairman. ASHON is  a registered Trade Group by the Securities and Exchange Commission (SEC). Market development is at the core of ASHON’s  and CIS’ activities.

Each group provides blueprints to the government annually on how it can utilise the market to grow the economy. The challenge is the failure of the government to utilise our inputs. Worse still, the Federal Government does not take inputs from the market operators on any capital market policy whereas the operators are the bridge between the Government and investors. This is one area that we believe that the new administration would make a difference in order to rejuvenate the economy.

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Nigeria’s focus on renewable energy is a misplaced priority — UN SDG Executive



HANNAH OSAYANDE BERE is a United Nations SDG Advocate, mental health ambassador, sustainability executive, and advocate for gender inclusion. She was born with a passion for humanity and sustainable growth. In an interview with OMOLOLA DEDE ADEYANJU, she discussed how Nigeria can achieve sustainable economic growth, a balanced level of gender inclusion, and reach the UN’s 2030 agenda for member states.

How did you become a mental health ambassador?

I am a born survivor, I lost my mum and my immediate younger brother in a house fire and that was the biggest house fire ever seen in my community at the time. It happened when I was thirteen years old so I didn’t know how to process it. I was more of frustrated, deppressed, and being from an African home, my dad did what he could do but what I needed at that time was a therapist, a counsellor, I needed someone to talk to but instead it was a case of ‘she will be fine, she is bereaving’.

So growing up I knew I should also help other people battle depression, I started researching on how I can help, what I can do to help people most especially in Africa, in Nigeria. I also remember someone telling me ‘you can actually pass for a mental health ambassador because of the way you talk to people, your level of empathy and your passion’. I was nineteen as at the time, hence I began receiving trainings and certifications. Being a mental health ambassador although started as a passion of mine but overtime it became a career.

Just before I had my first child I got my certificate on mental health training then after the birth of my second child I became a certified ambassador due to the different achievements I got. At this point I delved into focusing on mothers, it was so incredible that the niche became women battling postpartum depression. I became an advocate, an ambassador helping them come out of that and thenceforward different organizations started reaching out to me for public speaking and consultancy.

Being a mental health ambassador has helped me in my career in terms of sustainability, as we know ESG, the S stands for Social. My approach, feedback is based on empathy, getting to hear people’s stories and seeing ways to help them out.

What are your achievements as a mental health ambassador so far?

As little as a smile on a child’s face is, it’s a great achievement for me. A smile that comes from something positive I have done, like giving food to them is an achievement for me no matter how little and that’s why this career is a very passionate path to me. The impact my job has is real time that changes lives and I do not take it for granted.

What are those sustainable policies you think our leaders should adopt to change this consequent stories of negative leadership in Nigeria?

Well, unfortunately that is a very exhausting question to answer but I will say that the Nigerian government is neglecting the S in ESG, the S is Social and Social is People. The Nigerian government is neglecting its people, I understand the current government said we are going to let the market handle prices, float prices and currencies and let the market decide.

There’s nothing in place, you can’t just make a decision without putting an option or buffers in place for your people to leverage on. The people are frustrated! Sustainability is not just about planet or profit but the people. The people have the same complain over and again, I think that’s where we have to revert to the United Nations SDG goals.

The goals were enacted so that the people could have a sense of prosperity, people, partnership, community, culture. There are 17goals stipulated and they are incredibly helpful and straight forward. The top eight of the goals are; zero poverty; zero hunger; good health and wellbeing; quality Education; gender inclusion; clean water; renewable energy; decent work and economic growth.

I don’t think it’s too much for a government to say, while we are making such a big change, let’s focus on a particular area. Food should be affordable, this is not negotiable, access to clean water, these basic things. People should have access to decent jobs, industrialization at the grass root levels.

The United Nations have given the blueprints of the top 8 SDG goals that if you focus on achieving them, by 2030, your country will thrive, if not totally but there will be an incline, a growth process for your state.

Even giving out palliatives of ten thousand naira doesn’t make sense knowing the kind of community you have created where everything is so pricey. Such approach is an intentional one to make the people remain in abject poverty. Who are the President’s advisers and what are they advising? Every home, every community should literally have food, you need to restructure and restrategize. I

Do you think overpopulation is a major problem to getting a sustainable economy for Nigeria?

I can never say our population is a barrier because there are other countries with vast population than ours and they are doing very well to a particular level in respect to sustainability. This is a case of not having the right awareness, not having the right strategy to reach every community to every end, it’s all about the right strategy.

Can you pinpoint a strategy for the government?

Definitely I will to the right ears because if I give a strategy now, the execution may be given to the wrong person to execute. However, the ideologist of an idea should be the one vested with the responsibility of execution. Only who profers the startegy can give the right implementation of it.

What is your core interest from the 17 sustainability goals?

The people and the planet nevertheless I will say the people first because the people is life. Like I said earlier, I am a mom, I make moves on a sustainable impact for my kids to say my mom has done all these so that we don’t need to go through all that in future. For planet, what are we doing to protect our community, our environment, country, people? are key questions for me.

Therefore, the United Nations sustainability role is no longer a job but a lifestyle to me.

Since you started Advocating for gender inclusion, what have you realized or accomplished so far locally, globally or within your own space?

I have been Advocating for gender inclusion even before I knew what the word meant. I remember a time I went to a village in Benin city with my mom when I was about eight years old and we were speaking to the elders and some children but I noticed that the girls were not communicating with me. I asked my mom why and was told they couldn’t understand English because the girls in that community were not allowed to go to school. I asked my mom how I can teach them English language and she retorted that I have to be a teacher first. So growing up when my dad asked me what I wanted to become I told him I would like to be a teacher. Being an African dad, he told me I was either going to be a lawyer, engineer, or a doctor, howbeit, I have an incredible dad, when I told him I actually want to return to that community to empower a lot of girls he gave me his support and indulged me. I studied English education in Benin city and I was able to fill that vacuum of my heart.

I wear the shoes, I am a woman and no gender can tell better what is faced by women than women. I have seen some places in Nigeria where a woman doesn’t attain a certain position, where the women get lesser pay than men, and so many even think that the role of a woman starts and ends in the bedroom and kitchen. That’s the kind of community Nigeria has built which is very unfortunate.

I remember when I was in the job hunting world, I told myself any organization I will be sending an application to, I will have to go through the list and profiles of the board of directors, if there are no women or no black women, or minority groups represented, such is not fit for my consideration. This is because if your managements are not diverse in the UK, a nation that is very diverse, then you are indirectly telling me there’s no way I can rise to that level no matter the impact.

Also, in Nigeria we have a long way to go, there should be a sustainable engagement of both genders in the system. The nation is changing notwistanding the change is not loud or major enough. Women can be tender and still be very productive. Nigeria will do better with women as leaders in higher authorities. Organizations that practice the EDI- Equality, Diversity and Inclusion do better than those who just stick to the norms. If the government can bring up a gender inclusion policy for organizations, there will surely be a change in that aspect. More people will speak up and see it as human right if there is more campaign and awareness around ESG and EDI.

As a renewable energy expert, let’s talk about barriers to a sustainable economic growth and draw our case study from energy and its impact on the manufacturing sector.

When people have not eaten, the last thing they will be thinking of is how to draw resources for power supply. How many people can afford solar systems even when we say it is affordable. What do we mean by affordability. Before we start looking at renewable energy, why don’t we ensure diesel, gas, eletricity is as affordable as a sachet of water? Before we get to investing in renewable energy we should have subsidized a whole lot on various items, then people would of necessity welcome the idea of renewable energy. It shouldn’t be our focus for now.

When I learnt that renewable energy is getting big in Nigeria I did a market survey and realized that only a minute number of our population can afford to have solar systems in their homes. That’s an avenue that is concentrated on profit alone, it is not an industry that cares about the average Nigerians but the rich alone. This is not and should not be our focus now. The focus should be zero poverty, jobs for people, quality education. There are other things that takes precedence over renewable energy.

But energy affects cost of production which directly also affects the cost of commodities coming to everyone at every level

The government should just ensure the diesel and other gasoline being used presently are affordable and this will positively also affect cost of production. The government needs to step up to make affordability their goal.

How far have we gone with the UN’s 2030 Agenda? and how has UN supported Nigeria in respect to its claims to support member states for the achievements of this agenda?

An average Nigerian is not even aware of UN and what they do because they haven’t even gotten awareness of policies and the agenda of the Nigerian government and I can tell you for sure that United Nations actually support member states and are also rendering supports to Nigeria however the question is, does the system ensure that every Nigerian benefits from it, even to the grassroot level?

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How NGOs, religious bodies can utilise technology to maximize impact — Emmanuel Ogbewele



The just concluded RCCG’s Minister’s Conference 2023 was indeed a memorable event which took place on the 21st of October, 2023. This yearly national event attracted thousands of Ministers of the gospel of The Redeemed Christian Church Of God with various eye opening sessions empowering Minister’s to take on the gospel more prepared.

At this year’s event, Lagos Province 65, trained hundreds of Minister’s under various sections CSR, Hospitality,  Tech and Digital space and a lot more. 

We were able to seize a moment with Emmanuel Ogbewele, the Tech speaker at this year’s event who trained well over 200 live attendees at the House of Praise, Lagos Province 65 Headquarters on “Digital World and Virtual Space – A Panacea for Church Growth Today (Focus on IT and Social Media).

What has the experience been like at today’s event?

It has indeed been awesome, all sessions before the tech training was indeed a build up and an eye opener for all Ministers.

Can you briefly tell us what you trained on today?

Yes, as a tech expert, I spend some time showing people how to adapt and use technology to their advantage and this is what the Minister’s learnt at the tech conference.

– Understanding the Digital Space and Virtual World

– Practical steps to run digital campaigns with a view to attract more members in line with the Vision 2032 mandate of the RCCG.

– Steps to implement this even at smaller church levels.

It was an hour most of the participants did not want to end.

What is that major take home you want all participants to remember?

The Digital Space is open for everyone to explore, religious bodies, NGOs and everyone is not left out. Start small implementing the processes learnt but never stop. Thank you.

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