National Daily

Petrochemical is crucial to housing sector Paints manufacturers

MR. Bola Olayinka, the Managing Director DN Meyer Plc and Chairman, Paint Manufacturers Association of Nigeria, has urged the Federal Government to develop the country's petrolchemical sector. According to him, there is the urgent need for concerted effort to build local capacity in the petrochemicals sector. This is in order to reduce dependence on foreign inputs by manufacturers of paints, plastics and related products.

It was unfortunate that paint producers had to source about 70 per cent of manufacturing inputs from abroad despite Nigeria's position as the eight largest producer of oil. He said,” Close to 70 per cent of raw materials used in a standard paint quality company are been imported and that is a very sorry situation for us, that is a terrible thing we are living with.

”In most cases, we end up surrendering our future to foreign companies, including importing inflation to our country, because we have to buy at those high prices, and we are using offshoot of petroleum products, which will only come out after processing. ”If on a daily basis, we produce two million barrels of oil and we have not made provisions on what kind of industry that will give value back to our country, then, there is a big problem.

Olayinka, who pointed out that about $50billion worth of oil and gas investments were expected in the Gulf of Guinea Region in the next 10 years, said Nigerian firms must be positioned to absorb a significant portion of the investments by developing capacity and investing in cutting edge technology. He, however, said that the company had developed a portfolio of products, including coatings and anti- corrosion products that would ensure its participation in the oil and gas upstream in line with the local content policy of government.
He expressed regrets that the plastics, paints and other polythene industries relied on oil-based raw materials yet Nigeria did not have adequate processing facilities after over 50 years of oil exploration. He said the situation only gave rise to a massive supply chain comprised of traders, who did not add much value to the Gross Domestic Product.