13 signs Nigeria’s economy is on the brink of collapse

Last week, the Nigeria’s President, Umaru Yar’Adua finally put the lie to the strident and persistent denial by the Governor of the Central Bank of Nigeria, Prof. Chukwuma Soludo of the nation’s economic susceptibility to the roiling global financial crisis.

President Yar’Adua, acknowledged, last week, the fact that the effect of the global economic malaise are already being felt in Nigeria, while announcing the names of members of a new broad based Presidential Steering Committee that will fashion out a strategic response to the impact of the current global financial meltdown on the country. The committee, which will coordinate a “new economic framework” is to be headed by the President himself.

In this review, we highlight 13 dangerous signs that are indicators of an economy on the brink of collapse even if Prof. Soludo thinks otherwise.

Nigeria at risk of down grade of sovereign rating which may balk foreign interests in debt issues

The slump in the prices of crude oil has created a desperate situation for the Central Bank of Nigeria as it limits its ability to defend the Naira, the currency of the continenet’s biggest crude oil producer.

Gunther-Kuschke, a sovereign-risk analyst at RMB, the investment banking unit of First Rand Ltd. in Johannesburg, wrote in a note to clients last week that the Nigerian Central Bank won’t be able to sustain its support of the naira in an environment of declining oil prices and falling export revenue.

“The Central Bank will have to reassess its strategy of using foreign reserves to support the naira,” said Kuschke. “They’ll want to keep their reserves intact in order to protect their credit rating.”

Nigeria is rated BB- by Fitch Ratings and Standard & Poor’s, three notches below investment grade. The nation’s foreign reserves slumped 11 per cent to $55.05 billion in the 3 1/2 months to Dec. 18, according to data compiled by RMB.

“A ratings downgrade would really hurt their ability to raise capital at reasonable rates, particularly through sovereign-debt issuance,” said Kuschke.

This would put at risk Nigeria’s approved plans to issue a $500 million 10-year sovereign bond to fund infrastructure projects in the country and part of the $5billion deficit budget financing it has to embark on to bridge the projected shortfall in income.

Miserable National Earning prospects

So many factors in the international environment are seemingly conniving to dampen any hope of buoyant earnings for Nigeria from its dominant crude oil export. Nigeria was literally smiling to the bank until September 2008 when the price of crude oil which had hit a high of $147 began a rapid retreat. Last week, the nation’s mainstay export earner had crossed the Mason Dixon line, selling at a price below $33.

One of the reasons oil prices continue to tumble, in the consideration of market experts, is that crude oil inventories have continued to build, suggesting that demand for oil and gasoline will not rebound anytime soon.

The United States of America’s Energy Department’s Energy Information Administration said last week that crude inventories grew by 1.2 million barrels for the week ended Friday, 9 January. Though this was below the expectation of three million barrels, according to the average of estimates in a survey of analysts by Platts, yet the department said in the report that oil stocks jumped 6.7 million barrels the previous week, meaning less and less crude is being used.

Gasoline inventories rose by 2.1 million barrels, 300,000 barrels ahead of analyst estimates, and distillates increased by 6.4 million barrels compared with the estimate of a gain of 1.7 million distillates.

The build in distillates – used for heating oil and diesel fuel – comes as blowing snow and frigid temperatures pound much of the country.

Prices have also continued to fall, according to experts, because there is growing evidence that a weakened global economy has eaten away at energy demand.

Besides, as the US, Nigeria crude oil main buyer, enters a corporate earning season which is expected to be fraught with bad news.

“Clearly, the focus is back on the macroeconomics, and the concern that the demand for oil is just not going to be there any time soon, and there’s going to be plenty of oil out there,” a US Department of Energy official, said last week.

Traders are buying crude and putting into storage in hopes that it will be worth more at a later date. Oil tankers are being leased at sea and storage space for crude on land is not easy to find as futures contracts expire, meaning the buyer must take delivery.

“Little wonder then why overall crude oil supplies have since jumped to a 35-week high,” Schork wrote in his daily publication, The Schork Report.

The US largest manufacturers have slashed spending on fuel and penultimate week, aluminum producer Alcoa said it was cutting 13,500 jobs and making deep production cuts.

Alcoa, chip maker Intel and biotech company Genentech will report fourth quarter results, giving investors a glimpse of how deep the current recession may be.

“Given that we’re likely to see quite a few rather poor fourth quarter earnings reports, downward pressure will continue to be exerted on oil,” said Victor Shum, an energy analyst with consultancy, Purvin & Gertz, in Singapore. “Worries about the macroeconomic outlook will continue to constrain oil.”

Oil prices have also fallen over fears that rising U.S. unemployment will undermine crude demand. The Labor Department said Friday that employers slashed 524,000 jobs in December and 2.6 million jobs for all of 2008. The nation’s unemployment rate jumped to 7.2 per cent, the highest since 1993.

Central Bank devalued the Naira for the wrong reasons

Even when it was obvious the naira was rapidly sliding against the dollar, the Governor of the Central Bank of Nigeria, Prof. Chukwuma Soludo, refused to make a public explanation as to what could have been responsible for the slide even as he had told the nation weeks before then that the nation’s economy was immune to the negative effect of the global financial melt down.

Despite the bank’s frantic efforts to allay the public fears, the value of the naira continued to plummet, yet, it was not until the members of the National Assembly demanded an explanation from the CBN Governor in person that the Governor availed the Nigerian public a morsel of explanation for the sliding naira.

The CBN Governor told the National Assembly that devaluation of the naira was a deliberate policy to increase the quantity of naira available for government in the light of dwindling income from the sale of crude oil.

Critiques of the policy said it would only lead to the degeneration of the nation’s economic sphere because the Nigerian government has no control over the price and quantity of crude that can be sold. They also dismissed the intension to devalue the naira so drastically it is impacting on cost of living of the average Nigerian.

“The Central Bank of Nigeria cannot determine the price of a barrel of crude, this is dependent on so many factors in the international market. The government cannot also determine the exact quantity of crude that can be taken away from the largely Niger Delta area of the nation, which is engaged in a protracted running battle with the nation’s armed forces and creating substantive distraction for oil exploration and producing companies operating in the Niger Delta,” an oil sector consultant in Nigeria said.

“Over a period of four months we can see a near maelstrom scenario in the international oil circle. Prices of crude had plummeted. From projections in the users country a reversion to climbing price is not expected in 2009 except something dramatic happens.

“On output, the nation is constrained, recall that the Federal Government budget is predicated on $55 per barrel of crude and a production projection of 2.25million barrels a day. Even, before the ink dried on the projection, the 2.25million barrels per day projection was coming in a short pack of 1.8 million barrel per day. Weeks after, OPEC made a desperate price beating thrust to create a bulwark against falling prices of crude by cutting supplies to the world market. So, now, Nigeria’s production quota a day is about 1.7million barrels a day.

“This has dire consequences for the nation’s income flow. The CBN lost the initiative to stem the fall of the naira by acting proactively before the all out impact of the global financial meltdown started reflecting on Nigeria’s financial markets,” the consultant said.

Nigeria now ranked 18th on the most-at-risk country

From newly rich Russia to impoverished sub-Saharan Africa, social strains are threatening the established political order, putting some countries’ very survival at risk.

The disillusionment and spillover effects of the global recession “are not only likely to spark existing conflicts in the world and fuel terrorism, but also jeopardise global security in general”, says Louis Michel, the EU’s development aid commissioner.

It’s the failed or failing states that stand to lose the most. “The punch line: poverty does cause violence,” says Raymond Fisman, a professor at Columbia Business School in New York. Researchers led by Edward Miguel of the University of California have even quantified it: a 5 percent drop in national income in African countries increases the risk of civil conflict in the following year to 30 percent.

The frailest nations are those south of the Sahara. The region accounts for seven of the top 10 countries in a ranking of “failed” states compiled by the Fund for Peace, a Washington-based research group.

Nigeria, which has the continent’s biggest fossil fuel reserves, is staring into a $5 billion budget hole due to the oil price swoon. It confronts an emboldened guerrilla movement in the Niger Delta, the oil-producing region that has attracted the likes of Royal Dutch Shell and Chevron.

“The outlook is not optimistic,” says Pauline Baker, the president of the Fund for Peace, which ranks Nigeria 18th on the most-at-risk list.

“Unless Nigeria begins to pull itself together, I think, with the lowering oil price in particular, it is quite vulnerable.”

The crisis could undermine the development momentum. It would mean joblessness would increase, and that could undermine the stability of nations like Nigeria.

Foreign investors are not in a hurry to come to Nigeria

Emerging market equity investors last year withdrew a record $48.3 billion (R452 billion at yesterday’s exchange rate) from their funds as the global financial crisis and economic recession hurt demand for riskier assets, according to data from EPFR Global.

The Morgan Stanley Capital International emerging markets index, which tracks 746 companies in developing nations, dropped 54 percent last year, the worst annual performance since the measure was created in 1987. Foreign investors withdrew $321.4 billion from the equity and bond funds that EPFR tracked.

The question for 2009 is whether credit markets will continue to thaw and whether all of the fiscal stimulus to come and the expectation of a recovery in economic activity later this year will be enough to coax some of the cash back into equity and bond exposure,” said Brad Durham.

The direct implication of this is that the foreign funds that drove the Nigerian stock market by the admission of the Director-General of the Nigerian Stock Exchange, may be tied down in their home countries as the funds that could have been brought into Nigeria must have found save havens in less risky assets.

Low remittances from Nigerians living abroad

The financial crisis and ensuing economic downturn has significantly slowed the flow of global remittance to developing countries for the first time in almost a decade. The key reasons for the almost global decline are now widely accepted:

–Job losses. Many immigrants in key remitting countries (such as the U.S., Australia and Spain) lost their jobs in 2008.

–Cost of living. Rising inflation in many developed economies throughout much of 2008 is likely to have eroded some remitters’ capacity to maintain the value of their remittances.

This will have a major effect. The U.K. Overseas Development Institute’s Humanitarian Policy Group Report has cited household surveys in Guatemala, Ghana, Uganda, Bangladesh and Sri Lanka, which have demonstrated remittances, have helped people escape poverty.

There is a general sense of individuals being cash-strapped around the country as relatives abroad cannot send money to families here.

Banks lending slows down

Nigerian banks were at the head of the boom period between 2002 and mid 2008, just emerging from a consolidation exercise with money virtually brimming in their vaults, the banks liquidity position was highly enhanced with public sector deposits which had been boosted by increased earning s from skyrocketing oil prices.

The story and its details have since changed, however. Oil price had hit the dirt, the federal government has informed the component parts of the federation to forget sharing money from the excess crude account which translates to mean that there is a paucity of funds.

The impact on banks is already telling, compared to when the banks had money to lend out, the vaults are drying up, while those whose projects are considered auspicious enough to be financed have to pay hefty interest on the loan or overdraft.

This has led to a general slow down in the real sector.

Micro finance banks at risk

The operations of micro finance banks were just getting into top gear only to be slowed into a state of desperation as it were, from the effect of global financial meltdown. Some of the licensed micro finance banks had ambitiously used the commercial bank’s operating template as their standard of operations. Now, not a few are in a strait as they tried to tend to customers and live up the high class standard they set for themselves.

Those interviewed said their sub sector is peculiar because unlike banks that have the money market where banks can fill their liquidity short fall, the micro finance banks don’t have such platform so they are left to fend themselves.

On the last count, about 30 micro finance banks are said to be desperate for fund injection into their system.

Dollar credit line dries up

An immediate fallout of the global financial melt down is the close down of the window that allows Nigerian banks fund their dollar and other foreign exchange needs through funds made available by their accredited foreign correspondent banks. Not many banks in Nigeria can access this window any longer.

Prices of goods are in flight

Inflation has no other name than general and persistent increase in prices of goods and services. Government officials always find a way of redefining the essence of rising prices away from its practical implication. The Governor of the Central Bank, in his characteristic Economic theorization told a bewildered nation that inflation cannot be domiciled as part of the effects of the global financial meltdown.

Whatever may be the case may be, the truth is that prices of goods are growing wings and flying out of reach of even the very buoyant. Our survey of wholesale and retail products shows that manufacturers are engaged in revaluating the prices of products to recoup possible losses to the crashing naira. Most retail prices have gone up by more than a hundred percent in the last six weeks.

No hope of reversal of fortunes for the Nigerian Stock Market

Regulators and stock market operators had assured the investing public of speedy revival of the stock market as the market began to founder in the early days of March 2008. Some more observant market operators and commentators had canvassed the need for a Federal Government bailout plan for the stock market. Recall that the then Minister of Finance, Shamsudeen Usman had reviled that option as unnecessary, the CBN Governor aligned his position with the then Minister of Finance.

Unfortunately, the management of the Stock Exchange and the Securities and Exchange Commission opted to remain silent in the face of the illogicality the Federal Government was canvassing to justify it non involvement in the revival of the stock exchange.Last week Monday, Prof. Ndi Okerek Onyuike, Director-General of the Exchange muster enough courage to inform the nation that the government got it wrong by not intervening in the market.

“Government pronouncement that it would not bail the market, even before the stakeholders concluded their meeting on the way forward showed that it did not appreciate the problem in the capital market.” Okerek-Onyuike said at a press briefing to review the activities of the market in 2008.

The Director General of the Exchange disclosed that foreign portfolio investments dropped by over 41 per cent to N150bn, while record of sales by foreign investors puts the figure at N550bn, representing a net outflow of N400bn.

The NSE DG used the occasion to express her personal frustration over how certain forces and interests in government had short circuit efforts at reviving the market for their own selfish end.

“Nigerians are parochial in their approach to national issues, especially on the true situation in the Nigerian capital market. It is our usual approach that once we are not in charge we make every effort to pull down people for selfish reasons,” Okereke-Onyuike.

The present dilemma is that some experts have estimated that the Nigerian stock market needs about one trillion naira to experience a rebound, only the Federal Government can dare pull that kind of money but as it turned out the federal government is cash strapped.

It is a hopeless situation for the stock market.

Massive jobs cut imminent

Already, there are indications that the banking industry would soon experience massive job cuts as banks have concluded plans to lay off thousands of workers as part of strategies to cope with the impact of the global financial crisis. Concerned economists said this won’t be limited to the banking sector as cost of production increases across board for manufacturers and the operating environment becomes inclement.

CBN losing battle to save the naira

The Governor of the CBN, Prof Chukwuma Soludo may pass as a congenital optimist. It would now seem that rather for him to engage in proactive policy direction to save an obviously crashing naira, the professor of economics would rather grandstand and postulate positions derived from nomadic logic.

It was not until this past Wednesday 14 January, after a Monetary Policy Committee meeting that the Governor of the CBN abandoned his long talks on optimism to reel out emergency measures to secure the value of the naira.

The Naira had depreciated by N7.25 from N146.20/US$ on Friday, 9 January to N153.45/US$ on Monday at the Interbank market largely because the CBN, the only major source of supply, could not meet local demand that has been increasing in the last few weeks as a result of speculative trading.

After the Monetary Policy Committee meeting the CBN announced that strict foreign exchange management measures will be utilized to forestall; the continued decline in the local currency. The CBN then announced the reintroduction of the Retail Dutch Auction System (RDAS) with effect from January 19,2009. Bids under the RDAS will be on cash basis; currencies purchased shall be used for transactions stipulated in the required documen-tations, purchases made by banks on customers’ behalf shall be published in the dailies fortnightly, foreign exchange Net Open Position (NOP) of banks shall be reduced from 10 per cent to five per cent effective January 19,2009 among others.

Experts said the harm had been done before the CBN introduced its belated naira saving measures. By Friday, 9 January, the naira had depreciated by N18.73 or 14.3 per cent in the official market since the beginning of the year. Last week, from N131.27, the naira depreciated to N144 in the official market, losing N12.73 to the dollar.

Most hit are importers that enjoyed credit financing from their suppliers. Most had secured their supplies at the rate of N118 to a dollar, those that have their payment due in January have accumulated the difference between the exchange rate in November and now with significant impact on their cash flow.

The Nigerian Employers Consultative Association (NECA), the Nigeria Labour Congress (NLC), Manufacturers Association of Nigeria (MAN), and other members of the organised private sector warned that the continued fall of the Naira would lead to widespread increases in prices of goods and services, unemployment, and increases in costs of capital projects across the country.


The United States of America Export-Import Bank (Ex-Im Bank) is the official Export Credit Agency of the United States. Ex-Im Bank assists in financing the export of U.S. goods and services to international markets. This enables large and small U.S. companies to turn export opportunities into real sales that help to maintain and create U.S. jobs and contribute to a stronger national economy.

The Ex-Im Bank provides Working Capital Guarantees (Pre-Export Financing), Export Credit Insurance, Loan Guarantees and Direct Loans (Buyer Financing) to beneficiaries in countries around the world. These beneficiaries are availed the opportunity to fund new business initiatives and to finance the expansion of ongoing business concerns through accredited agents of the Ex-Im Bank.

One of the accredited agents of the US Ex-Im Bank with special focus on Nigeria’s business environment is FinancialBridge, a Florida, USA Corporation providing Export Finance and Business Credit Consulting Services to U.S. and International Private Companies and Government Agencies. FinancialBridge is represented in Nigeria by Energy Industry Development Initiative. In this review, we highlight 20 business projects the US Ex-Im Bank is ready to finance in Nigeria.

AGRO-BUSINESS Farming, Food Processing & Distribution Projects

1. Fish Processing, Cold Storage & Distribution Project: The project estimated to cost about $5.75 million, will be capable of processing 10-12 tons per 12 hour day of Fresh Fish (Tilapia, Grouper & Catfish), Pink & Grey Shrimps and Crawfish.

The overall goal of the project is to establish a Pre-Engineered Processing Facility in Coastal Fishing Communities that will be capable of processing Fresh Fish, Crawfish and Shrimps purchased from local Fisherman and Fishing Cooperatives for processing and distribution through a Network of ten (10) Fish Shops to be located throughout various markets. The project will also incorporate Smokehouse Equipment capable of producing Smoked Fish & Crawfish Products for International and Local sales.

The project will not be involved in fishing or fish trawling but will provide opportunity to Fishermen that are compelled to smoke dry the day’s catch as a means of preservation, while leftover fresh fish are normally sold in local markets at give away prices to avoid spoilage. The project will ensure proper care in cleaning, handling and packaging the fish, thereby eliminating the fish from spoilage and supply a consistent source of high quality fresh fish free from contamination.

Main Processing Facility:

14,000 sq. ft. Pre-Engineered Project Building with 6,000 sq. ft. Refrigerated Warehouse, Cold Storage and Refrigeration System, Fish, Crawfish & Shrimp

Packaging & Processing Equipment, Standby Power Plant, Industrial Ice Production Equipment, 5 x 2.5 Ton Refrigerated Trucks, Tools and Accessories and 3,500 sq. ft. Wholesale & Retail Fish Market attached to the facility.

Ten (10) x 1,500 sq. ft. Pre-Engineered Fish Shops, each complete with 20 ft. containerized Cold Storage, Refrigerated Counters & Industrial Freezers, as well as portable Power Generators

Smokehouse Equipment

Delivery Support Boats.

Industrial Walk-in Coolers and Freezers

Walk-in Coolers, Freezers and Refrigeration Units:

2. Meat Processing and Packing Plant: The Meat Processing and Packing Plant will process a mixed quantity of Cattle, Goats and Pigs to be sourced from the local heads. The project’s main products line will include Processed Beef Cuts as primal and sub wraps, showing different parts of the meats like Steaks, Middle Meats, etc. Other meat products to be produced will include Goat Meat Cuts, Pork and Pig Meat Cuts, Bacon and Sausage Products, Tenderized and Smoked Meat Parts, etc.

The meat products will be packed in preprinted vacuum-sealed packages under modified atmospheres to retard microbiological spoilage and prevent discoloration of products. The products will be stored in the Plant’s Cold Storage and Refrigeration Systems and distributed to supermarkets utilizing three (3) 20-ton Refrigerated Delivery Trucks initially.

The Plants, Machinery and Equipment list include:

Pre-Engineered Administrative Building

Pre-Engineered Metal Factory Building, complete with Slaughter & Processing Equipment

Bone Grinding – Boiler Building.

Cold Storage and Refrigeration Systems

Smokehouse, Sausage and Bacon Processing Equipment

Tenderization & Sterilization Equipment

Processing and Freeze Packing Equipment

Meat Packaging Equipment & Accessories

Pre-Printed Packing Materials and Sanitation Equipment

1,000KVA Standby Electric Power Generators

2×1 Forklift Truck

3 x 20-ton Refrigerated Trucks

Water Bore Hole Pumps & Tanks, etc.

Estimated Cost: CIF of Plant, Machinery and Equipment, Installation and Start-up: From $4.85 million.

3. Fruit Juice Processing Plant: A 20-30 ton per day Fruit Juice Processing Facility can process and package up to 3,000 liter/hr. of various Juices and Spring Grade Water, bottled and packed in PET and or Pouch Systems.

The system will be designed to wash, prepare and juice a range of citrus and tropical fruits, blow heat set bottles from pre-forms, blending of fortified water and juice based products, flash pasteurization and sanitizing of the filling system, bottles and caps. The system will accommodate 0.5 and 0.75-liter PET bottles with 28mm screw caps or Pouch Drinking System.

Juice Processing Equipment:

2 x 60 Hl raw Juice Holding Tanks with agitators, glycol jacket and cladding and Juice concentrate drum handling and dispensing system.

In-line blending system complete with 15 Hl. batching tank and two 30 Hl. packaging holding tanks.

Single tank CIP/SIP system with Oxine activation unit for cleaning and sanitizing process lines and tanks.

Product transfer hoses for the juice processing area.

Stainless steel hose and bottle cap sanitizing bath.

“PurePass” “Hot Fill” pasteurization system rated at 30 Hl/Hr for non-carbonated products complete with feed tank, filler supply tank and CIP/SIP system.

Oxine activation units to allow the high strength, activated Oxine (4,000 ppm plus), to be used throughout the plant at different concentration levels for sanitizing.

Stretch blow moulding machine for 6,000 BPH with automatic pre-form feeder and hopper, heat exchanger, chiller, compressors, air distribution and filter package.

Two sets – Moulds for 0.5 and 0.75 liter PET bottles with 28mm caps.

PET Bottle Rinser, Filler and 28 mm. screw capping system for juice hot fill and non- carbonated water packaging.

Filler frame and shroud for sterile filling operations.

Pre-rinse unit and Rotary feed table & Slat band chain infeed conveyor

Slat band chain discharge conveyor & Glue wrap around labeler

Shrink wrapper, Tray conveyors, and Ink jet printer

In-feed and discharge interface and build back control.

Pouch Packaging System and Equipment capable of producing up to 7,200 pouches an hour at 100% efficiency:

Pouch filling system for 250 ml. plastic film pouches for water and juice products.

Discharge conveyor and full pouch hopper.

Utilities & QC Equipment:

1x 40 ft. reefer box and 3 Ton chiller unit for raw juice storage tanks to chill the juice for storage

50 HP Steam Boiler With condensate returns and blow down tank

Utilities pipe work and fittings for connecting to the process and packaging plant

Laboratory equipment for in-plant QA for bottled water and juice analysis

Control and Spare parts for 1 year operation

Estimated Cost – CIF, Installation and Start-up: From $6.5 million.

4. Water Bottling & Soft Drink Production Plant: The Plant will be capable of bottling 56,000 Gallons of Processed Water per day packed in .5, 1 & 5 Liter Bottles as well as produce Carbonated Soft Dinks in different flavors, packed in 12oz & 24oz PET Bottles.

Water Bottling Plants, Machinery and Equipment List:

Water Treatment Equipment with State-of-the-art Reverse Osmosis System & Bottling Line

Water Bacteria Protection System

5 Liter + Washer and Filler

Dual Tank Commercial Multimedia Filter:

Dual Tank Commercial Carbon Filter & Anti Scalent Injection System

Purified Water Storage Tanks & Ozone Disinfections Systems:

Small Bottle Packaging System & Shrink Wrapping System

Automatic Bottle Unscrambler & Case Packer

Cleanroom Air Filtration and Pressurization System

Blow Molding System & Standard Test Equipment Package

PET Plastic Bottle Production Line – .5, 1 and 5 Liter Bottles

Water Bottle Molds:

Soft Drinks (Soda) Production Line:

Carbon Dioxide Carbonation Machine:


Modular Steel Factory Building – 80’x 100’x25’

1,000 KVA Caterpillar Standby Power Plants.

Estimated Cost- CIF, Installation of Plants, Machinery and Equipment, Training and Start-up: From $3.6 million.

5. Micro Brewery Plant: Micro Brewery Plant with annual capacity of 15,000 Hectoliters designed to produce Lager Beer, Malted Beverages, Bottled Water and Soft Drinks (soda), with minimum consolidated daily production broken down to:

2,982/22 oz Bottles of Beer per day

5,352/12 oz Bottles of Beer per day

3,894/12 oz Bottles of Malt per day

1,200/12oz Bottles of Mixed Soft Drinks per day 1,200/12oz Bottles of Mixed Diet Soft Drinks per day.

Production Plants, Machinery & Support Equipment List:

Malt Handling and Milling Equipment:

Brewhouse Equipment

Cellar Equipment , Valves and Fittings

Packaging/ Racking System

Lab Equipment

Bottle Filling Equipment

Keg Filling and Cleaning Equipment

Tunnel Pasteurizer

Glycol System Piping and Control

Steam System Piping and Controls

Keg Washing & Filling Machines

Fermenting and Storage Tanks

Water Filtration Equipment

Level Gauge and Air compressor

Yeast Propagation Plant, Tank and Control System

K Mash & Wort Kettle

Kettle Drive (Overhead Drive) & Steel Furnace

Natural Gas or Diesel Burner & Conical Kettle Dome

Inner Light Fixture & Sprinkling Pipe

Whirlpool & Accessories , Steam Condensing Pipe

CIP-Unit , Hot Water Tank ,Steam Heated Heat Exchanger

12-Head Bottling Line

Power Plant

Project Building

Estimated Cost: CIF, Installation, Training and Start-up: From $5.5 million.

6. Commercial Cassava Farming and Processing Project: The Integrated Cassava Cultivation and Processing Project will be designed as a viable commercial enterprise to utilize available farmland to cultivate Cassava, which has very high secondary product demand as industrial raw materials, apart from domestic consumption demand of various Cassava Food Products.

A Processing Unit will be designed to process 100 to 500 Tons per day of Raw Cassava into Industrial / Commercial Starch and other mixed products of Flour, Garri, Chips, Pellets, Animal Feed and or Glucose Syrup/Powder. The Cassava Farming aspect of the project will be capable of employing over 3,000 workers and cultivate from 500 through 1,000 hectares of farmland.

Applications of Cassava (Tapioca) Starch in Food and Non-Food Industries include:

Filler – Increasing the content of solids in canned soups, ice creams, fruit preserves, pharmaceuticals, etc.

Binder – Binding the products and preventing drying during cooking as in sausages and meat preserves, etc.

Stabilizer – Using the high water-holding capacity as in ice creams, baking powders, etc.

Textile – Size for warp threads to reduce warp breaks and shredding on looms. Printing Starch to thicken dyes and act as carrier for color. Finishing Starch to improve stiffness and weight (Native or Oxidized Starch).

Thickener – Using the paste properties, as in soup, baby food, sauces & gravies.

Paper – To improve strength, increase resistance to folding, etc, and on surface to improve appearance and resistance. For corrugated and laminated paper and paper board box.

As Binder For Industrial Uses – Ceiling board, Gypsum board, Feedstuff (Aquafeed and Livestock Feeds).

Other Industrial Uses – Decomposable Plastic Bags, Tire Industry, as Glue for Plywood Industry and Detergents.

Processing Plants and Machinery include:

Weighing Scales

Root Washing , Burner and Automatic Washing Machine

Chopping & Rasping Equipment & Washing Tower and Desanding Equipment

Cassava Peeling Machine & Automatic Chipping System Machine

Starch Extraction and Pulp Dewatering

Starch Concentration and Fine Fiber Sieving

De-Hydrating Line & Pulp Dewatering Sieve; Washing Tanks and Packaging Bags

Grinding Machine & Extraction/pulp dewatering Unit

Concentration Line & Starch washing & Dewatering Equipment

Drying and Bagging – Pneumatic Flash Dryer

Concentration & Refining Unit , Feed hopper & Discharge belt conveyor

Inclined belt conveyor , Dry cleaning drum & Peel Water Pump

Horizontal, Screw Chopper, Inclined belt conveyor & Feed hopper

Estimated Cost: Cassava Farming Project (Cultivation of +500 Hectares): From $5.75 million.

Estimated Cost: Cassava Processing Plant of 100 tons to 500 tons per day covering CIF, Installation, Training, & Start-up: From $4.8 million through $11 million.

7. Plantain, Cassava and Potato Chips/Flakes Production Plant: The Plant will be designed to process up to 6,500lbs/hr of mixed Raw Materials of Plantain, Cassava and Potato into Chips and Flake Products, packaged in 6oz to 20oz Pre-Printed Packs.

Plantain Chips: Estimated Cost: CIF, Installation, Training and Start-up: From: $2.82millio

8. Canned Tomato Paste Manufacturing Plant: Canned Tomato Paste Manufacturing Project capable of processing between 2,500 to 6,000 metric tons of Tomato into Canned Tomato Paste Products.

A small scale plant capable of producing 30-40 (12oz/340grams) Cans of Tomato Paste per minute is estimated to cost $5.7 million, including Processing Plants & Machinery, Pre-Engineered Factory Building and Standby Power Plant

A medium scale plant capable of producing 90-100 (12oz/340grams) Cans of Tomato Paste per minute is estimated to cost $9.25 million, including Processing Plants & Machinery, Pre-Engineered Factory Building and Standby Power Plant.

The Tomato Paste Making Machinery includes:

Washing & Sorting Line

Elevator for Fruit, Crusher

De-Pulper & Pre-Heating Unit

Buffer Tank & Vacuum Evaporator

Storage Tank

 Hot Kneader Rotary tank & Automatic Filler

Can Making Line:

Automatic Sheet Feeding Machine

Automatic Tandem Slitters

Cutter Grinder Machine & Outside Lacquer Coating Machine

Automatic Flanging Machine & Automatic End Seamer

Magnetic Elevator & Automatic Body Conveyor

Body Welder , Generator, Exhaust Box

Auto-Seamer, Automatic Can Pasteurizer

Coller Empty Can Feeding Equipment

Pipe for Juice Conveyor , Hygienic System, Conveyor System

Small Tomato Packing System

Automatic Sheet Feeding Machine with Oiling Device

Automatic Gang Slitter & Automatic Strip Feed Pres with Mould

Automatic Curling Machine & Connecting Conveyor

Automatic Lining/Drying Machine & Horizontal End Stacker

9. Fish, Shrimp & Crawfish Trawling Project: Available U.S. manufactured and Pre-Owned fully refurbished Fish, Shrimp/Crawfish Trawlers are in average of 8-15 years old and powered by engines of various models, max speed of 20-40 knots, complete with Navigation / Radio Equipment, GPS Fish/Shrimp Finders, Crew Cabins, Refrigerated Fish/Shrimp Holds and Fiberglass Work Area on Deck. Estimated Cost: Including Cost of Pre-owned Vessel, Refurbishing & Training From $950,000 through $7.1 million.

10 Solid Mineral Mining and Processing Project: Plants and Machinery for use in mining and processing a wide range of solid minerals into commercial and processed exportable raw materials, including Limestone, Clay, Kaolin, Dolomite, Silica Sand, Pyrite, Bauxite, Gypsum, etc.

The Plants and Machinery for a typical solid mineral mining and processing plant will include Crushers, Screens, Machine Feeders, Washing Equipment, Conveyors, Scales, Power Plants, Wheel Loaders, Loader Backhoes, Skid Steer Loaders, Dozers, Excavators, Scrapers, and Cranes, capable of processing up to 20 100 tons per day of related solid mineral products.

Estimated Cost – CIF, Installation and Start-up: including CIF, Installation, Training, & Start-up from $1.2 million through $7.5 million.

A Solid Mineral Processing and Milling Project can also be established to process the lumps and chips of various solid minerals and milled into various export grades of industrial powders of 250 mesh to 1,000 mesh and bagged in 25 kg bags for marketing, depending on local and international buyers’ requirements.

Units of Hammer Mills and Ball Milling Machines will be installed to mill crushed lumps of Dolomite, Granite, Marble, Limestone, Kaolin, Mica and Gypsum into dust range of between 0-20 and further reduced to very fine industrial powder of 250 mesh to 1,000 mesh. By varying the screen size, shaft speed or configuration, the mills can dramatically alter the finished size of the product being ground. Faster speed, a smaller screen and more hammers and addition of ball grinders will result in finer end products of 250-1000 mesh quality. Each component can be changed individually or modified to produce the precise grind required.

Estimated Cost – CIF, Installation and Start-up: $5.25 million.

11 Dredging and Commercial Sand Production Project: Fully equipped Dredger capable of excavating approximately 300 cubic yards of commercial grade sand per hour, utilizing 8′ x 10′ dredge pump. The Dredger uses a hydraulic, submersible 12″ radial fan pump mounted at the end of the boom behind a shrouded, horizontal cutterhead. The pump is rated at 3,500-gpm slurry with a maximum T.D.H. (slurry s.g. 1.25) @ 881 rmp w/2,000 feet discharge length.

Dredge functions are controlled by a diesel/hydraulic power unit driven by a turbo-charged diesel engine with 325 hp at 2,200 rpm. The operator’s cab comes complete with Air Conditioning.

Estimated Cost CIF, Training, Operation and Start-up: $559,000.

12. Portable Sawmill and Wood Processing Project: A typical Wood Processing Project incorporates 4 Portable Sawmills with advanced hydraulics, each with industry-leading 62HP diesel engine for primary sawing of various sizes and types of log into sawn timber products. The plant will be capable of processing wood into export grade Boards, Plywood, Casings, Baseboards, Crowns, Standard Moldings, Chair Rails, Dentils, Mantels, Accessory Blocks, Flooring, Doors and Accessories.

The project will also have three (3) integrated Solar Drying Kiln Systems with solar collectors, three insulated walls, aluminum flashings, drip cap, clear plastic roofing, passage doors and air intake door, distribution and circulation fans, each with a capacity of 3000 bd.ft. Solar energy enters through clear plastic roof, hits the black painted surfaces of the interior walls, baffles and is converted to heat. Three fans circulate dry air drawn from adjusted vent to pickup moisture from lumber piles. Temperature of over 20 degrees is easily achieved for drying.

Estimated Cost – CIF, Installation, Training and Start-up: From $710,000.

13. Portable ConcreteRoofing Tiles Plant: The Portable Concrete Roofing Tiles Plant will be supplied in manual, semi-automated and fully automated models, capable of producing complete range of Roofing Tiles, Ridges and Caps, with capacities of minimum 60 tiles per minute or 2,000 – 50,000 roofing tiles per 16hr/day, with fully Acrylic Painting and Stretch Wrapping.

Estimated Cost – CIF, Installation, Training, & Start-up, from $100,000 through

$4.5 million.

14. Corrugated Long Span Aluminum Roofing Sheets & Allied Product Project: The Plants & Machinery will have two lines, with one line producing 16,335 Feet/Day of Corrugated Aluminum Roofing Sheets in 0.35 mm, 0.45 mm, 0.55 mm and 0.70 mm as well as 1,900 Feet/Day of Roofing Ridges, Gutters, Claddings and Roofing Accessories.

The second line will produce Profiles, Aluminum Door & Window Frames as well as Pre-Fabricated Panels and Accessories for construction of Factory, Commercial Buildings and Private Homes.

The project can be expanded into a second phase that would incorporate additional equipment to produce a wide range of aluminum products including Cooking Utensils, Pots and Pans, Liquefied Petroleum Gas (LPG) Cylinders (12kg & 4kg), Ladders, Automobile Parts and Components, etc.

The raw materials for the manufacture of Corrugated Long Span Aluminum Roofing Sheets, Cladding, Roof Gutters, Ridges and Roofing Accessories, as well as Pre-Fabricated Panels and Accessories for Factory/Commercial Buildings and Private Homes will include Painted Mill Finish Aluminum Coils with dimensions of 0.014″(0.35mm) x 49.213″ through 0.028″ (0.70mm) x 49.213″), while Cold Rolled Mill Finished Aluminum Coils of various sheet thicknesses will be used in the production of Windows and Doors Frames as well as Profiles for Railings, Partitioning, Cashers Cubicles and Roof Gutters.

Estimate cost: CIF, including Installation, Start-up Pre-Painted Raw Materials (Coils), Pre-Engineered Factory Building, Standby Power Plant and Lift Trucks: From

$5.5 million.

15. General Electronic Products Assembly Plant: The project will involve supply and installation of Plants & Machinery to assemble Complete Knock Down (CKD) Components into E-Commerce and General Electronic Products, including GSM Phone Sets, Desktop / Laptop Computers, Central, Window, Wall and Splits Air-conditioning Units, expandable to assemble other products in the future depending on market demand.

Project Implementation will also cover supply of 3 months CKD Stock of the products to be assembled as well as installation of Support Facilities including 80’x100’x25′ Pre-Engineered Steel Factory Building, 600 KVA Standby Caterpillar Power Generator, Satellite Based Wireless Internet System and Walking 4500-Lb Pallet Truck / Rider 6000-Lb Pallet Trucks. Estimated Cost – CIF, Installation and Start-up from:

$2.75 million.

16. Fertilizer Blending Plant – 60 Ton/hour – packed in 50 kg. Bags: The Plant will produce Multi-Nutrient Fertilizer known as NPK Fertilizer by blending raw materials of Nitrogen (N), Phosphorus (P) and Potassium (K). The Plants, Machinery and Equipment of the 60 tons per day Fertilizer Blending and Bagging Project, estimated to cost from $5.85million.

Equipment: Self-Contained Lump Buster with 304 stainless steel housing and 3′-6” (1.06M) x (4.12M) wide charging hopper with low lip and mounted over elevator intake. Complete with 30 horsepower (22 Kw) totally enclosed fan cooled motorized speed reduction drive. Unit is shipped completely assembled.

Bucket Elevator- 20” (508 mm) x 52” (1320.8 mm) x 73′-0” (22.3 M) discharge height having stainless steel boot with clean-out door. Intermediate and head section of type 304 stainless steel. Elevator is supplied with gravity take-up assembly, including boot sprocket with shaft and double seal take-up bearings. Elevator also includes double interlock pillow block bearings, head shaft, split flanged rim head sprocket and combination chain with attachments ever 3rd link, and 16” (406.4 mm) x 8′ (203.2 mm) Bucket

Heavy Duty 8-Way Distributor, complete with motorized controls. Distributor Housing and internal spout are fabricated of type 304 stainless Steel. Complete with indicator switches to indicate spout position. Spouts to hopper compartments and one spout direct to mixer. Spouting of all 304 stainless steel construction.

Compartment Hopper consisting of: (6) 15 metric tons compartments of all 3/16” (4.76 mm) and ¼” (6.35 mm) steel plate construction. Total hopper capacity is 90 metric tons. Also included are access doors for each compartment. It is recommended that hopper be sandblasted inside and out and coated with coal tar epoxy paint or fabricated of stainless steel. Hopper to be knocked down match-marked and welded in the field to minimize shipping cost.

14” (355.6 mm) Pneumatically Operated Totally Enclosed Salem Valve of stainless steel construction with pneumatic cylinders with Stainless steel rods to be mounted on bottom of hoppers; stainless steel solenoid valve sets for the operation of valves: Canvas Socks and stainless steel clamp bands, provided for dust tight connection to weigh Hopper. Gates extra heavy duty.

17. Hydrated Lime Plant: The Hydrated Lime Plant will process locally available Limestone into Commercial and Export Grade Hydrated Lime Products packed in 50kg Bags. Hydrated Lime (calcium hydroxide, Ca(OH)2), also known as slaked lime, is a dry powder manufactured by adding water to quicklime, converting the oxide to hydroxide. To produce lime, crushed limestone is burned in a kiln at temperatures ranging from 8900 to 13400C. A dissociation reaction takes place when the limestone is broken down, releasing CO2 and producing CaO or CaO.MgO (quicklime).

Hydrated Lime has a wide industrial application in the Paper, Polymer, Healthcare, Paint, Water Treatment and Asphalt. Hydrated Lime is commonly used as a softeningagent in water treatment as well as a mineral filler and stiffener in binding hot mix asphalt. Estimated Cost – CIF, Installation and Start-up: From $15.8million.

18. Waste Collection, Processing and Recycling Project: The Waste Collection, Processing and Recycling Project is designed to collect Household and Industrial Wastes, including Plastics, Scrap Metals, Paper and Tires, etc., and processed into reusable and marketable raw materials.

The plant is structured as an integrated viable commercial unit, operating three levels of Waste Collection, Sorting and Processing, with a capacity of 50-100 tons per day. The Project content will include Waste Processing & Recycling Plants, Front and Side Loading Garbage Trucks, Handling Equipment & Materials, Home and Office Outdoor Rollout Waste/Garbage Containers, Utility & Support Equipment, etc.

Estimated cost: From $5.75million, covering CIF, Installation, Training & Start-up.

19. VSAT Wireless Telephone and Internet Network Project: The project will involve the utilization of Small Aperture Terminal (VSAT) equipment to develop a Wireless Telephone and Internet Network Project capable of utilizing the Network to provide between 1,000 domestic and 10,000 commercial VoIP Telephone Lines, complete with Cordless and Desktop Handsets and Wireless Receiver Units for rural and urban subscribers communities.

The VSAT Wireless Network System can also be configured to facilitate establishment of Digital Wireless Network Centers as Digital Community Resource Cafés to additionally provide Commercial Internet Services, Commercial E-mail Accounts, Web Design and Hosting, Telephone Interlink, Commercial Pre-Paid Calling Card Services and Bandwidth Leasing. Other services will include LAN Administration, Corporate and Commercial Internet and E-mail Access Services to other standard ISP Accounts, Set up of LANs for Corporate Clients, VSAT Point-to-Point Links, Pre-Paid Pay Phone Services and Computer Training for schools, employees of Government agencies, private companies and local communities.

The project will start with the deployment of a high-speed satellite link that will feed a series of transmission towers in turn connected to the end users. The Network Architecture will be fed with a 3.7 satellite link via a satellite dish located on the top of an antenna structure and connected to a Network Operation Center (NOC).

Estimated Cost: CIF, Installation, Training & Start-up and Network Management:

$7.5 million.

2. Portable VSAT Satellite Internet & VoIP Telephone Systems: Commercial IT Projects can be established involving development of Digital Communications Cafes utilizing High-Speed Wireless Internet Satellite Systems, each connected 24 hr/day to provide private IP address on a leased or shared line of up to 2Mbps in download and 512Kbps for upload. The portable system can also provide Voice, Fax and High Speed Internet to remote domestic homes or commercial offices where local telephone carriers are not available.

Each portable unit will be capable of providing Web Access, E-mail Services, Prepaid VoIP Telephones and Fax by Satellite Service. The units can be configured for network solution and will not require local ISP connectivity and come ready-made for easy deployment within a multiple Digital Communications Cafes, which will be housed in Pre-Engineered Steel Buildings shipped along with the equipment.


Africa and the Middle-East

Central and Eastern Europe

European Union

Russia, Kazakhstan, Turkmenistan, Takjikistan, etc.

India, the Caribbean and Pakistan

The development of a Digital Communications Café complete with Portable Satellite Internet System, Accessories, Desktop Computers, Software, One (1) Year Prepaid Access Fees, Backup Generators, etc. Estimated Cost: From $100,000, while portable units for single homes or offices cost from $15,000.

20. Professional Skill Outsourcing Support Facility: The Professional Skill Outsourcing Support Facility has capacity to utilize over 1,000 local Professionals from locations in developing economies to provide services to European and American Companies seeking cheaper Telecom, IT Networking, Insurance, Banking, Financial, Software and Retail Services. Companies from developed economies turn to developing countries with English speaking educated workforce to grow Telecom infrastructure capable of providing Back-Office Support.

The Center will be designed, equipped and fitted with IT and Telecom Facilities as a Business Service Provider and up to the standard of similar Offshore Back-Office Service facilities around the world. Some developing countries have large IT-workforces that can easily be retrained to standards acceptable to companies in the United States and Europe, to serve as Internet and E-commerce Applications and Database Administrators, Software Engineering/Programmers/Analysts, Network Specialists and Communication Engineers.

Other retrained skilled professionals can provide services in Bookkeeping, Inventories, Data Entries, eAccounting, Payroll Processing and Management, Data Conversion, Call/Contact Services, Drawing Conversion, Component Procurement Services, Accounting, Insurance Claims Processing, E-commerce Transaction Support, Live Online Enquiry Handling, Customer Support, Tele Marketing, Transaction Processing, Travel and Hospitality Services, etc.

Many Foreign Banks engage employees at India -Bangalore Centers to process transactions for the banks’ offices in New York, Frankfurt, Tokyo and London. A company in India provides call center and claims processing services for about 25 major corporate clients, mainly financial services companies such as U.S. Credit Card Firms. American CPA Firms and other Corporations in the U.S. outsource preparation of Financial Statements, Payroll Summaries, Income-Tax Returns or other Accounting Outputs to companies in countries that have skilled English speaking manpower.

Estimated Cost of Installation of Pre-Engineered Building to house the Professional Skill Outsourcing Support Facility complete with IT, Telecommunication and Support Equipment capable of training and utilizing over 1,000 Professional for Back Office Support From: $7.5 million.

Next week we continue the highlights of business projects the US Ex-Im Bank is ready to finance in Nigeria and review the process for accessing the funding by Nigerian entrepreneurs.

To be continued.