Raw materials and their uses

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RAW MATERIALS SOURCING FOR MANUFACTURING IN NIGERIA
(4TH EDITION)
RMRDC SURVEY SERIES 061
NOVEMBER, 2009
Editors:
Onwualu, A.P., Abdullahi, A.K
Jolaoso, M.A., Mbuk, M.I., Olife, I.C.

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Publisher
Raw Materials Research and Development Council (RMRDC)
No 17, Aguiyi Ironsi Street
Maitama District
P.M. B. 232, Garki
Abuja
Tel: 07098213090, 07098213091
e-mail: ceo@rmrdc.gov.ng
website: http/www.rmrdc.gov.ng
Copyright
 RMRDC, 2009
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means of electronics, mechanical, photocopying, recording or otherwise without prior permission in writing from the copyright owner.
Typesetting and graphics
Desktop Publishing Unit
Documentation and Publishing Division
Raw Materials Research and Development Council, Abuja.
ISBN: 978-978-50868-1-2

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EDITORIAL COMMITTEE
1. Prof. Onwualu A.P.
2. Dr. Abdullahi A.K.
3. Dr. Jolaoso M.A.
4. Mrs. Mbuk M.I.
5. Miss Olife I.C.

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TABLE OF CONTENT
Title page i
Table of content iii
Foreword vi
Acknowledgement vii
List of tables viii
List of abbreviations xi
CHAPTER ONE
1.0 Introduction 1
1.1 Structure of the Report 2
1.2 Members of the Committee 2
CHAPTER TWO BASE METAL, IRON & STEEL AND ENGINEERING SERVICES SECTOR
2.1 Introduction 4
2.2 Raw Materials Requirements in the Sector 4
2.3 Raw Materials Requirements on Sub-Sectorial Basis 4
2.4 Specifications of Raw Materials for Iron and Steel Production 12
2.5 Coke Blend/Coke/By-Products 13
2.6 Oxide Pellet/Sinter 14
2.7 Limestone/Dolomite 14
2.8 Specifications for Foudry Molding Sands 16
2.9 Investment Opportunites in the Sector 18
2.10 Research and Development in the Sector 19
2.11 Challenges and Opportunites 20
2.12 Government Policies Affecting the Sector 21
2.13 Conclusion 21
2.14 Recommendation 21
CHAPTER THREE CHEMICAL AND PHARMACEUTICALS SECTOR
3.1 Introduction 23
3.2 Raw Materials Requirements and Sourcing 24
3.3 Soap and Detergent Sub-Sector 24
3.4 Capacity Utilization Profile 24
3.5 Potential for Local Substitutes 43
3.6 Industries Operating in the Sector 44
3.7 R & D Activities in the Sector 45
3.8 Recommendations 45
CHAPTER FOUR ELECTRICAL AND ELECTRONICS SECTOR
4.1 Introduction 48
4.2 Raw Materials Requirement 48
4.3 Industries Operating in the Sector
4.4 R & D Activities and Facillities in the Sector 58

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4.5 General Observation 61
CHAPTER FIVE FOOD, BEVERAGES AND TOBACCO SECTOR
5.1 Introduction 64
5.2 Sugar 64
5.3 Quality Specifications of Raw Materials 65
5.4 Bakery 71
CHAPTER SIX MOTOR VEHICLE AND MISCELLANEOUS SECTOR
6.1 Introduction 74
6.3 Installed Capacity and Capacity Utilization 76
6.4 Raw Material Sourcing/Local Availability 77
6.5 Potential for Local Substitution 77
CHAPTER SEVEN NON METALLIC MINERALS SECTOR
7.1 Introduction 80
7.2 Raw Materials Requirement 80
7.3 Specification of some Non-Metallic Mineral Raw Materials 93
7.4 Capacity Utilization 99
7.5 Industries in Operation 105
7.6 Additional Industries Required to Meet the Existing National Demand 105
7.7 Research and Development 106
7.8 Summary of Processing Technology of some Non-Metallic Minerals 106
7.9 Fiscal Policy 106
7.10 Problems and Challenges 106
7.11 Conclusion 107
CHAPTER EIGHT DOMESTIC AND INDUSTRIAL PLASTICS, RUBBER AND FOAM SECTOR
8.0 Introduction 110
8.1 The Plastic Sub Sector 110
8.2 The Petrochemical Industry 111
8.3 The Tyre Sub-Sector 112
8.5 Industries that could be Established 115
8.6 Raw Materials that could be Developed or Sourced Locally 116
8.7 Raw Materials Specification 116
8.8 R & D Activities in the Sector 122
8.9 Raw Materials Process Technology, Machinery and Products 122
8.10 Fiscal Policies Affecting the Sector 127

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Appendix 132
CHAPTER NINE PULP, PAPER, PAPER PRODUCT, PRINTING AND PUBLISHING SECTOR
9.2 Primary Paper Mills 134
9.3 Raw Materials Used in the Sector 134
9.4 Industrial Specifications of Raw Materials in the Sector 139
9.5 Capacity Utilization Profile 142
9.6 Short Fall for Major Raw Materials in the Sector 144
9.7 Potentials for Local Substitute 146
9.8 Investment Opportunities 147
9.9 Research and Development Activities in the Sector 149
9.10 Machinery/Equipment Engaged for Processing Raw Materials in the Sector 151
CHAPTER TEN TEXTILE, WEARING APPAREL, LEATHER AND LEATHER PRODUCTS SECTOR
10.2 Raw Materials Requirement and Utilization 160
10.3 Products 162
10.4 Cottage Tanning/Footwear and Leather Goods Industries 165
10.5 Machinery 166
CHAPTER ELEVEN WOOD AND WOOD PRODUCTS SECTOR
11.3 Sources of Roundwood (Logs) 177
11.4 Adhesives 178
11.5 Basic Chemicals used in Resins 179
11.6 Industrial Chemicals 179
11.7 Overlays 179
11.8 Availability of Local Raw Materials that could be Developed and Used by the Industries in the Wood and Wood Products Sector 180
11.10 Investment Opportunities in Wood and Wood Products Sector 185
11.11 Research and Development Activities in the Sector 186
11.12 Machinery and Equipment Required in the Sector 188
11.13 Conclusion 190
11.14 Recommendation 198

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FOREWORD
When in the middle of the 1980’s Nigeria discovered that the national economy was experiencing some difficulties, the Structural Adjustment Programme was introduced in 1986 to diversify the nation’s economy and make it less dependent on petroleum whose price in the international market was unpredictable. This brought about some challenges, among which was the devaluation of the naira, that made importation of the needed raw materials and machinery difficult. In response to these challenges, the Council was established by the Act. No. 39 of 1987 to expedite industrial development through optimal utilisation of local raw materials as inputs for our industries.
In order for the Council to achieve its mandate of “reviewing from time to time raw materials resources availability and utilisation with a view to advising the Federal Government on the strategic implication of conservation, exploitation, depletion or stockpiling of such resources”, techno-economic survey of Nigeria’s natural resources was introduced in 1989, with a view to identifying gaps in raw materials sourcing, utilization and development. The 1989 survey report was updated in 1992, 1996, 1999/2000, 2003 and 2006 so as to provide periodic and current data on raw materials development and utilisation.
Over the period, the information collected was always analysed, produced and disseminated to prospective investors, researchers and the general public through the Raw Materials Information System (RMIS) and website (http/www.rmrdc/gov.ng). The reports, which are based on the ten sectors of the Manufacturers Association of Nigeria (MAN), are usually synthesized into a single publication titled” Raw Materials Sourcing for Manufacturing in Nigeria”. The 1st, 2nd and 3rd editions of the publication were produced in 1990, 1993 and 1997 respectively.
This edition is the fourth in the series. The objective of the publication is to provide vital information on raw materials sourcing for existing industries in the ten sectors, their capacity utilization, raw materials specifications, potentials for local substitutes in the sectors, industries operating in the sectors, research and development activities, among others. The report differs with the previous editions in that raw materials specifications in the sub-sectors were added to assist raw materials suppliers. Also the report focused on only 3 sub-sectors in each of the ten sectors. This is aimed at giving more detailed information on the sub-sectors of MAN.
It is hoped that the information in the publication would assist existing manufacturers and prospective investors with necessary information that would enable them make informed decisions on the use of local raw materials to enable the Country save its scarce foreign exchange.
Engr. (Prof.) P. A. Onwualu. FAS
Director General/Chief Executive Officer

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ACKNOWLEDGEMENT
The Committee wishes to express deep appreciation to the management of the Raw Materials Research and Development Council (RMRDC) for the opportunity given to its members to participate in this very important assignment. Our sincere gratitude particularly goes to the Director-General for his total support throughout the duration of the assignment.
The Committee alsi extends its gratitude to all those who gave their secretarial contributions, especially Mr. Mike Dimkpa for typesetting the work. Our appreciation also goes to all those who contributed in one way or the other to make this project a success.
Dr. A.K. Abdullahi
Committee Chairman

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LIST OF TABLES
Table 2.1 Raw Materials and Status of Industries in Base-Metal Sub-Sector.
Table 2.2 Major Iron Ore Deposits in Nigeria.
Table 2.3 Raw Materials Available in the Country
Table 2.4 Raw Materials Imported
Table 2.5 Raw Materials Available Locally but Imported
Table 2.6 Some of the Additional Industries Needed to Make the Existing Industries Self Reliance
Table 3.2.1 Capacity Utilization of Raw Materials: Soap and Detergent Sub-Sector
Table 3.2.2 Capacity Utilization of Raw Materials: Agro-Chemicals and Fertilizers
Table 3.2.3 Capacity Utilization of Raw Materials: Pharmaceuticals Sub Sector
Table 4.1 Sub-Sector: Electrical Bulbs, Lamps and Accessories
Table 4.2 Sub-Sector: Electrical Power Control
Table 4.3 Sub-Sector: Cables and Wire
Table 4.4 Sub-Sector : Electrical Bulbs, Lamps and Accessories
Table 4.5: Electrical and Electronics: Basic Raw Materials Available in Nigeira and their Locations
Table 4.6 R & D activities in Nigerian Research Institute
Table 5.1 Import Duty Profile of Selected Raw Materials (2008-2012)
Table 5.2 Raw Material Requirements
Table 5.3 Average Capacity Utilization in Bakery Industries
Table 6.1 Vehicle Body Component & Technology Situation
Table 6.2 Summary of Component, Raw Materials and Technology Existing and Possible Manufacturers for Engine and Transmission
Table 7.1 Major Raw Materials Used by the Sub-Sectors
Table 7.2 Non-Metallic Raw Materials Used by the Sub-Sectors and their Source
Table 7.3 Raw Materials Requirement by the Industries
Table 7.4 Occurrence, Development and Proven Reserves of some Non-Metallic Minerals Raw Materials in Nigeria
Table 7.5 Product Specification for Kaolin in Industries
Table 7.6 Product Specification for Ball Clay
Table 7.7 Industrial Specifications for Barites
Table 7.8 Specifications of Feldspar for Ceramic Industry
Table 7.9 Specification of Gypsum in Chalk, P.O.P and Ceramics
Table 7.10 Industrial Specification for Talc
Table 7.11 Qualitative Classification of Quartz/Silica Sand
Table 7.12 Specifications for Marble/Limestone
Table 7.13 Industrial Specification of Calcium Carbonate for Cement, Fertilizer and Glass Production
Table 7.14 Average Operating Capacities of the Industries in the Non-Metallic Mineral Products Sector

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Table 7.15 Summary of Processing Technology of some Non-Metallic Minerals
Table 8.1 Raw Materials for the Plastic Sub-Sector
Table 8.2 Raw Materials for Rubber Sub-Sector
Table 8.3a Petroleum-Based Raw Materials
Table 8.3b Agro-Based Raw Materials
Table 8.3c Chemical-Based Raw Materials
Table 8.4 Raw Materials for the Plastics Sub-Sector Indicating Full Capacity Requirements, National Demand, Current Capacity, and Shortfall for 2006.
Table 8.5a Capacity Utilization for Plastic Products
Table 8.5b Capacity Utilization for Tyres and Tubes
Table 8.6
Table 8.7 Polystyrene Sheets
Table 8.7
Table 8.8 Summary of Processing Facts in the Plastic Industry
Table 8.9
Table 9.1 Raw Materials Requirement of Pulp, Paper, Paper Products, Printing & Publishing Sector
Table 9.2 Industrial Specifications of Raw Materials in the Sector
Table 9.3 Summary of Average Capacity Utilization in the Pulp, Paper, Paper Products, Printing and Publishing Sector.
Table 9.4 Capacity Utilization in the Pulp, Paper, Paper Products, Printing and Publishing Sector 2003 – 2006
Table 9.5 Most Important Raw Materials of the Pulp, Paper, Paper Products, Printing and Publishing Sector (demand-supply gap)
Table 9.6 Investment Opportunities in Paper, Paper Products, Printing and Publishing Sector
Table 9.7 Research and Development Activities in Nigerian Institutions/ Industries
Table 9.8 List of Machinery and Equipment for the Sector (Paper Industry)
Table 10.1 Raw Materials Requirement for Wearing Apparel Industry
Table 10.2 Livestock Population Figures in Nigeria
Table 10.3 Common Products of the Wearing Apparel Industry
Table 10.4 Major Leather Exporters in Nigeria for the Year 2005
Table 10.5 Production Activities of Cottage Tanning Industries in Kano
Table 10.6 Production Activities of Cottage Leather Retaining, Dyeing and Finishing Industries in Kano
Table 10.7 Production Activities of Cottage Leather Products Industries
Table 10.8 List of Raw Materials Requirements for the Tanning Industry
Table 10.9 List of Raw Materials Requirements for the Footwear and Leather Goods Industries
Table 10.10 Consumer Price Indices for Clothing and Footwear
Table 10.11 List of Industries with Linkages with Leather and Leather Products
Table 11.1 Research and Development Activities in Nigeria
Table 11.2 Major Raw Materials Utilized in the Sector
Table 11.3 Raw Materials and Industries

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Table 11.4 Wood Requirement of Industries
Table 11.5 Geographical Distribution of Forest Lands and Timber Stocking in Nigeria: 1988
Table 11.6 Kaolin Occurrence and Deposits in Nigeria

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LIST OF ABBREVIATIONS
AAD Agro and Agro-allied Deparment
AGOA African Growth Opportunity Act
ARCEDEM African Regional Centre for Engineering Design and Manufacture
ASW Augmented Spherical Wave
AT&P African timber & plywood
BOF Basic Oxygen Furnace
CBN Central Bank of Nigeria
CKD Completely Knocked Down
CPD Chemical & Pharmaceutical Division
CD Computer Division
D Director
DD Deputy Director
DRF Drug Revolving Fund
EAF Electric Arc Furnace
ECAC East and Central African Countries
EEG Export Expansion Grant
FDI Foreign Direct Investment
FBD Food & Beverage Division
FRIN Forestry research Inst. Of Nigeria
FSM Fixed Spin moment
GDP Gross Domestic Product
KRPC Kaduna Refinery and Petrochemicals Company
LDL large diameter logs
LNG Liquidified Natural Gas
MAN Manufacturers Association of Nigeria
MF melamine formaldehyde
MFA Multi-fiber Arrangement
MT Metric ton
MTF-EE Multidisciplinary Task Force – Electrical and Electronics
N/A Not Available
NIPRD National Institute for Pharmaceutical Research and Development
NIPP National Integrated Power Programme
NARICT National Research Institute for Chemical Technology
NIPRD National Institute for Pharmaceutical Research and Development
NMC Newsprint Manufacturing Company
NNMDA National Medicine Development Agency
NNPC Nigerian National Petroleum Corporation
NPM Nigerian Paper Mills Ltd
NISPRI Nigerian Stored Products Research Institute
OCIL Organic chemical Industries Ltd
OEM original equipment manufacturers
PKO Palm Kernel Oil

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PF phenol formaldehyde
PHCN Power Holding Company of Nigeria
PRODA Projects Development Agency
PPPPP Pulp, Paper, Paper Product, Printing and Publishing sector
RADAMA Refrigeration, Air conditioning and Domestic Appliances
SAP Structural Adjustment Programme
SKD Semi-Knocked-Down
SMEs Small and Medium Enterprises
SON Standards Organisation of Nigeria
TAM Turn Around Maintenance
UPS Uninterrupted Power Supply
UNIDO United Nations Industrial Development Organization
UBE Universal Basic Education system
UF Urea Formaldehyde
UDU Usmanu Danfodiyo University
VAT Value Added Tax
WTO World Trade Organization

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CHAPTER ONE
INTRODUCTION
1.0
The Raw Materials Research and Development Council (RMRDC) was established by Act No. 39 of 1987 with the broad mandate to promote, support and expedite industrial development and self-reliance through optimal utilization of local raw materials as inputs to the industries. Among the seven specific mandates of the Council, three, which are directly linked to the need for Techno-Economic Survey are:
 to draw up policy guidelines and action programmes on raw materials acquisition, exploitation and development;
 to review, from time to time, raw materials resources availability and utilization, with a view to advising the Federal Government on the strategic implications of depletion, conservation or stock-piling of such resources;
 to advise on adaptation of machinery and processes for raw materials utilization.
In pursuance of these mandates, the Council commissioned Committees on its first Techno- Economic Survey of Nigeria’s natural resources and their industrial potentials in 1988. The cardinal objective of the survey, which covered all the industrial sub-sectors of the economy, as classified by the Manufacturers Association of Nigeria (MAN), was to gather information on locally available raw materials, technology and raw material requirements and capacity utilization of the manufacturing industries. The survey also covered the conversion of locally sourced raw materials into industrial inputs and the dissemination of information to stakeholders.
In order to consolidate on the gains of this exercise and update the data collected in the first survey, which was concluded in 1989, the Council organized other surveys in 1992, 1996, 2000, 2003 and 2006. However, in 2007, the Council was restructured through which a new organogram emerged. The new structure placed the responsibility of conducting Techno- Economic Surveys on the various technical departments. Consequently, a Committee was constituted to review the Survey programme with a view to improving subsequent exercises.
The Committee was set up with the following Terms of Reference:
i. Review the Techno-Economic Survey/ Industrial Study Programmes of the Council
ii. Review previous modalities of the exercise
iii. Develop alternative modalities to enhance the quality of the exercise
iv. Redesign the programme to make it contribute to government policies
v. Recommend ways of reducing respondent apathy during surveys/ industrial studies
vi. Make any other recommendation to enhance the quality of the programme.

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In order to provide comprehensive information on raw materials sourcing covering all the ten sectors, the maiden publication tagged “Raw Materials Sourcing for Manufacturing in Nigeria” was produced in 1990. The publication was updated in 1993 and 1997. This edition, which is the fourth in the series, is synthesized 2006 reports of the ten sectors of MAN.
1.1 STRUCTURE OF THE REPORT
As in the 3rd edition, in this edition information is presented based on the ten sectors of MAN. However, the presentation is more concise and focused. Specifically the report is structured as follows:
 Introduction;
 Raw Material Requirements;
 Raw Material Sourcing;
 Raw Materials Specification;
 Capacity Utilization;
 Raw Materials Shortfall;
 Potentials for Local Substitutes;
 Industries operating in the Sector;
 Investment Opportunities in the sector;
 Research and Development Activities;
 Fiscal Policies; and
 Recommendations
1.2 MEMBERS OF THE COMMITTEE
1. Dr. A.K. Abdullahi D(AAD) Chairman
2. Engr. F. Folarin Okuribido DD(MVMD) Member
3. Alh. U.A. Hassan DD(TLD) “
4. Mr. B.A. Aluko DD(FBD) “
5. Mrs. M. I Mbuk DD(PRFD) “
6. Mr. E.A. Asanga DD(CPD) “
7. Engr. G. Ladan DD(IED) “

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8. Mr. K.O. Biliaminu DD(MD) “
9. Dr. M.A. Jolaoso DD(ICSD) “
10. Dr. A.A. Ogunwusi DD(WPPD) “
11. Dr. D.M. Ibrahim DD(NOC) “
12. Mr. C.C. Okeke DD(CD) “
13. Dr. M.L. Buga DD(FBD) Member/Sec.
14. Mr. S.S. Onjewu ACSO(FBD) Asst. Secretary
15. Miss. I.C. Olife SOI(FBD) Asst. Secretary

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CHAPTER TWO
BASE METAL, IRON & STEEL AND ENGINEERING SERVICES
2.1 Introduction:
The Industrial Studies on Base Metal, Iron and Steel, and Engineering Services Sector which was updated in 2006 was aimed at evaluating the availability of local raw materials in the Foundry and Iron and Steel sub-sectors. The studies were aimed at providing data on raw materials requirements for the existing industries, process technology, priority areas for research and development activities, resource-based investment opportunities, and areas required for capacity building in the fabrication of plants, machinery as well as production of spare parts. However, the data analyzed was affected by low return of administered questionnaires attributed to the following factors:-
 Apathy toward the study
 Obsolete equipment and machinery
 Lack of working capital and difficulty in accessing bank loans for long-term investment
 Fear of divulging trade secrets to other competitors in the sector
 High tariff on spare parts machinery and consumables
 Business closures as a result of hard economic environment
 In adequate infrastructural facilities.
As a result of these factors most of the key players in the Sector refused to appropriately respond to critical questions raised in the study. Therefore, most of the analyses carried out were based on scanty and secondary data obtained during the 2006 update of industrial studies on Base Metals, Iron and Steel, and Engineering services Sector. However in this synthesis an overview of the status of four (4) sub-sectors, viz. Base Metals, Iron and Steel, Foundary and Welding Electrodes is given together with the problems and challenges as they relate to raw materials, machinery and equipment, process technology, R&D activities and fiscal policy.
2.2 Raw Materials Requirements in the Sector:
The raw materials required in the sector are mainly metallic ores that were classified into ferrous and non-ferrous ores. Ferrous ores are usually utilized as primary raw materials for Iron and Steel production, while the non-ferrous are used as base metals for production of different types of alloys required in the sector.
Metallic ores include iron ores, columbite, nickel, casserite (tin ore), wolfram (tungsten ore), molybderite (molybdenum ore) galena (lead ore), vanadium, sphalerite tourmaline, chromite (zin ore), gold, zircon, magnesite, ilmenite, e.t.c. Most of these ores and other raw materials such as coal, fluxes and refractory required in the Iron and Steel production have been found to occur in commercial quantities in many parts of Nigeria. Reserve estimates of some of the mineral ores available in Nigeria are presented in table 2.1, while detailed raw materials

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required in the sector at full and current capacities from 2003 to 2006. And this shortfall of 6,178, 997 to 3,167, 726 3,011,271 respectively over a period of 4 years.
2.3 Raw Material Requirements on Sub-Sectoral Basis
More than ninety (90) percent of raw materials used in the Iron and Steel, Foundries and Welding Electrodes sub-sectors are imported, even though some of them can be sourced locally with appropriate technology and production methods. However, raw materials required by each of the sub-sector are presented as follows:
2.3.1 Base Metals sub-sector
Base metals are non-ferrous metals such as aluminum, copper, lead, zinc, tin, gold, manganese columbite, nickel, tourmaline, chromites, e.t.c, while some of these metals can be used in their natural forms, others are used as alloys. In recent times, non-ferrous metals and alloys are significantly contributing to global technological development. Focus of activities in this sub- sector had been mostly on tin, a metal for which Nigeria has attained international standing in the early ‘70s. Some of the available local raw materials and other activities are presented below:
Table 2.1: Raw Materials and Status of Industries in Base-Metal Sub-Sector.
S/N
BASE METAL
DEPOSIT [STATE]
PROVEN RESERVE [MT]
REMARKS
INDUSTRY AND STATUS
Name
Status
1
Aluminum
Benue, Delta, Ekiti, Enugu, Kebbi, Taraba,
N/A
Exploration
1. ALSCON
2. Private Mills
About to be rehabilitated after privatization
Functional
2
Tin
Bauchi, Cross River, Ekiti, Kaduna, Kano, Niger, Plateau, Nassarawa, Taraba, FCT
300,000
Mining in progress
Makeri Smelting Co. Ltd., Jos
Reorganization/ rehabilitation
3
Lead and Zinc
Bauchi, Benue, Cross River, Ebonyi, Imo, Kano, Plateau,
20,000
Legal/illegal mining in progress
-
-
4
Gold
Cross River, Edo, Kaduna, Katsina, Kebbi, Niger, Osun, Zamfara,
N/A
Organized gold mining going on
-
-
5
Copper
Bauchi, Edo, Enugu, Kano, Niger,
N/A
-
-
-
6
Silver
Ebonyi, Gombe, Osun
N/A
Associated with gold, lead and zinc
-
-
7
Manganese
Cross River, Kaduna, Katsina, Kebbi,
300,000
Illegal mining in progress
-
-
8
Titanium
Plateau, Kaduna
Associated with tin ore. Presently waste in tin extraction.
-
-
Source: RMRDC.

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2.3.2: Iron and Steel sub-sector
Most of the operators in the sub-sectors are process equipment fabricators, spare parts producers, welders, steel furniture, doors, windows and burglary-proof fabricators.
Some of the essential raw materials and consumables required in the sub sector are Iron Ore, Coking Coal, Limestone, dolomite, refractory bricks, Ferro-alloys, Iron and Steel Scrap, natural gas and billets. Major Iron ore deposits in Nigeria are presented in Table 2.2.
Table 2.2 Major Iron Ore Deposits in Nigeria.
STATE
LOCATION
% FE
PROVEN RESERVES [MILLION TONNES]
REMARKS
Kogi
Agbaja
Itakpe
Bass Nge
Agbado-Okuda
Ajbanoko
Chokochoko
Fatti
Koton-Karfe
45 – 54
38 – 45
43 – 49
38 – 43
40
35
46
43 - 53
1,159
200 – 300
4,000
60
60
20
37
803
UI
Mining in progress
-do-
-do-
-do-
-do-
-do-
-do-
Plateau
Muro Hills
32
N/A
UI
Bauchi
Rishi
Gamawa
10 – 19
40 – 45
N/A
N/A
G
UI
Kebbi
Darkin-Gari
37
N/A
UI
Anambra
Nsude Hills
43 – 50
65
UI
Source: Oyeyinka et al [1997]
KEY UI = Under investigation
N/A = Not available
G = Only geological confirmation of ore presence
2.3.3. Foundaries
The Foundry sub-sector provides base for production of industrial components, spare parts, equipment and machinery. Most of the foundries in Nigeria deal with iron castings, low quality aluminum, brass, bronze and copper. The main raw materials required are scrap, pig Iron, coke, ferro-silicon ferro-manganese, limestone, silica sand, bentonite and sodium silicate. Iron castings are made from scraps such as (engine blocks, crank shafts, etc), while for non-ferrous castings, usually aluminum, copper, brass and tin are required. The major material inputs for the foundry industry include:
 Feedstock for melting pig iron, cast Iron Scrap, Steel Scrap, ferro-alloys, copper and its alloys, aluminum scraps, ingot, fluxes, etc.
 Molding materials – foundry sands, bentonite, binders
 Refractory lining materials, crucibles and other consumables.
2.3.4. Welding Electrodes
Welding electrodes are widely used in Base Metal, Iron and Steel and Engineering Services Sector. Electrodes contain various minerals which remove impurities during welding and protect weld area from oxygen and nitrogen, etc. Some minerals used in its production which

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are locally available in Nigeria include rutile, fluorspar, limestone, silica, mica, feldspar, bentonite and kaolin. Although most of these raw materials required for production of welding electrodes are locally available, only limestone and feldspar are being commercially exploited in the Country. Most of other mineral deposits are either under investigation or yet to be quantified, and thus major raw materials required in the sub-sector are imported.
Table 2.3: Raw Materials available in the Country
SUB-SECTOR: IRON AND STEEL
S/N
RAW MATERIALS
UNIT OF MEASUREMENT
UNIT COST (N) 2006
1.
Stainless Steel Sheets
Mt
30,000
2.
Stainless Steel Bars
Mt
6,300
3.
Cast Iron
Mt
6,500
4.
Mild Steel Sheets
Mt
11,000
5.
Iron Rods
Mt
15,000
6.
Angle Iron
Mt
6,000
7.
Iron Pipes
Mt
-
8.
Iron Channels
Mt
-
9.
Mild Steel Rods
Mt
-
10.
Stainless Steel Rods
Mt
-
11.
Hot Rolled Coil
Mt
60,000
12.
Paints
Litres/Gallons
-
13.
U-Channels
Mt
-
14.
Iron Coil
Mt
110,000
15.
Medium Carbon Rods
Kg
32,000
16.
High Carbon Steel Rod
Kg
33,000
17.
Steel Pipes
Mt
-
18.
Electrodes
-
19.
U-Channels
Lengths
-
20.
Galvanized Iron Sheets
Mt
-
21.
Galvanized Wire
Rolls
-
22.
Oxygen/Acetylene Gas
M3
200/m3
23.
Galvanized Pipes
Mt
15,000
24.
Galvanized Steel Sheets
Pieces
3,500
25.
Bolts & Nuts
Pieces
-
26.
Steel Pipes
27.
Ferrous Materials
Pieces
7,500
28.
Non Ferrous Materials
Pieces
7,500
29.
Flat Bars
Lengths
6,000
30.
Iron Ore
Mt
-
31.
Copper Sheets
Mt
-
32.
Brass Plate
Mt
-
33.
Galvanized Iron Pipes
Mt
-
34.
Angle Iron
Pieces
2,250.00
35.
Flat Sheets
“
2,700.00
36.
Rods
“
1,850.00
37.
Channels
“
2,200.00
38.
Electrodes
“
1,800.00
39.
Steel Pipe
Kg
3.300.00
40.
Steel Pan
“
5,000.00
41.
Aluminum
“
5,550.00

8
42.
Mild Steel
Pieces
3,600.00
43.
Flat Bar
Mt
300
44.
Galvanized Pipes
“
1,200.00
45.
Angle Irons
Lengths/M
2000 – 3000/Length
46.
Square Pipes (sections)
Lengths
1800 – 2000/Length
47.
Metal Plates
Sheets
1500 – 2000/Sheet
48.
Aluminum Profiles (for doors & windows)
Pieces
2500 – 3000/Piece
49.
Glazing Bites
Pieces
1000 per Piece
50.
Round Mild Steel Pipes
Lengths
2000 – 2500/Length
51.
Iron Ore
Metric Tonnes
6,000
52.
Dolomite
“
5,800
53.
Limestone
“
4,850
54.
Heavy melting Scrap
“
18,000
55.
Steel Rods
“
100,000
56.
Plates (Iron)
Mts
3,500 – 60,000
57.
Angle Iron
“
350 – 10,500
58.
Plates Sheets
“
6,000 – 12,500
59.
U-Channel
“
1,500 – 4,000
60.
Channels
“
2,500 – 10,000
61.
Pipe Casing
“
1,000 – 3,500
62.
Shaft
“
500 – 1,800
63.
Rods (Metals)
Kg (Mts)
100 – 7,000
64.
Electrodes
Plits
-
65.
Cutting Disc
Pieces
150 – 350
66.
Oxygen
Ltrs
3,300 – 5,500
67.
Carbides
Kg
60 – 20,000
68.
Pipes Metals
Mts
600 – 40,000
69.
Gas
Ltrs
15,000
70
Aluminum Roofing Sheets
Mts
1,200
71.
Anodized Aluminum Profiles
“
600
72.
Flat Bar
“
800 – 1,700
73.
Metal Sheets
“
3,000 – 8,000
74.
Bearings
Kg
150 – 2,500
75.
Bolts
“
15 – 1,000
76.
H-Beam
Pieces
25,000 – 50,000
77.
Z-Poline (Iron)
Mts
3,500 – 5,000
78.
Saw Blades
Pieces
150
79.
CE Plastic Mould
Pieces
550
80.
Thermostat Amplifier ADC Converter
Nos.
4,000
81.
Smoke Detector
“
2,100
82.
Flat Metal Pan
Sheet
2,850
83.
Angle Iron
Metres
1,500
84.
U-Channel
“
6,500
85.
Flat Metal Sheets
“
2,600
86.
Mild Steel Bar
“
2,600
87.
Mild Steel Sheet
“
6,500
88.
Brass Rod
“
4,500
89.
Stainless Steel Bar
“
35,000
90.
Stainless Steel Sheet
“
29,000
91.
Aluminum Bar
“
3,500
92.
Aluminum Sheet
“
20,000
93.
Moulding Material
Mt
-
94.
Moulding Sand
Mt
-

9
95.
Lining Materials
Mt
-
96.
Iron Ore
Mt
-
97.
Copper Scraps
Mt
450,000
98.
Steel Scraps
Mt
18,000
99.
Aluminum Scraps
Mt
142,000
100.
Cast Iron
Mt
-
101.
Angle Iron
Mts
860
102.
U-Channel
“
8,000
103.
Mild Steel Pipe
“
10,000
104.
Tin Plates
“
145
105.
Steel Sheets
Metric Tonne
200,000
106.
Aluminum Circles/Spouts
“
450,000
107.
Springs
Pieces
300
108.
Rivert Pins
Metric Tonne
12
109
Aluminum Profiles
Mts
143
110.
Steel Coil
Tonnes
2,307,506
111.
Tin Plates
Mts
145
112.
Steel Sheets
Metric Tonne
200,000
113.
Steel Coil
Tonnes
2,207,506
114.
Aluminum Wire
Mt
-
115.
Aluminum Rod
Mt
-
116.
Aluminum Coil
Mt
670,000
117.
Aluminum Plate Sheet
Pieces
-
118.
Paints/Thinner
Ltrs
-
119.
Aluminum Handles
Pieces
-
120.
Meth Chloride/Silicon Oil
Kg
-
121.
Colour/Staneous Octate
Kg
-
122.
Adhesive
Ltrs
-
123.
TDI/Poly Oil Chem
Kg
-
124.
Coating
Kg
-
125.
Inks
Kg
-
126.
PVC
Kg
-
127.
Tin Free Steel
Pieces
-
128.
Corrogated Carton
Pieces
-
129.
Vanish
Litres
-
TABLE 2.4: RAW MATERIALS IMPORTED
S/N
RAW MATERIALS
UNIT OF MEASUREMENT
UNIT COST (N) 2006
1.
Stainless Steel
Sheets
30,000
2.
Stainless Steel
Mt
500,000
3.
Stainless Steel
Plate
3,500
4.
Mild Steel
Sheets
-
5.
Cast Iron
Lengths
-
6.
Iron Rods
Lengths
-
7.
Ferrous Materials
Pieces
-
8.
Non Ferrous Materials
Pieces
-
9.
Angle Iron
Pieces
-
10.
Electrical Motors
Pieces
-
11.
Gear Box
Pieces
-
12.
Pipes
Pieces
-
13.
Flat Bars
Pieces
-
14.
Electrodes
Pkts
-
15.
Stainless Steel Rod
Mt
-

10
16.
Hot Rolled Coil
Mt
-
17.
Induction Gears
Mt
-
18
Saw Blade
Pkts
-
19.
Pulleys
Pkts
-
20.
Iron Coil
Mt
-
21.
Petrol Engine
Pieces
-
22.
Diesel Engine
Pieces
-
23.
Medium Carbon Steel
Mt
320,000
24.
High Carbon Steel
Mt
330,000
25.
Mild Steel Rod
Mt
230,000
26.
Aluminum Wire
M3
-
27.
Aluminum Handles
Mt
-
28.
Aluminum Coil
Mt
450,000
29.
PVC
Mt
-
30.
Reduction Gears
Pieces
-
31.
Tin Free Steel
Kg/Mt
-
32.
Aluminum Scrap
Kg
160.00
33.
Grinding Disc
No.
-
34.
Mild Steel Angle Iron
Kg
100.00
35.
Mild Steel 1-beams
Kg
100.00
36.
Mild Steel U-channels
Kg
100.00
37.
Welding Electrodes
Kg
300.00
38.
Screws
Packets
450.00
39.
Bolts and Nuts
Pieces
8.00
40.
Ferro Alloys
Mt
-
41.
Refractory
“
-
42.
Pig Iron
“
-
43.
Silicon
Kg
-
44.
Aluminum Alloys
“
30,000/Kg
45.
Steel plates
Metric tons
115,000.00
46.
Steel pipes
Metric tons
120,000.00
47.
Steel rods
Metric tons
100,000.00
48.
Angle bars
Metric tons
105,000.00
49.
Channels
Metric tons
100,000.00
50.
I – Beams
Metric tons
100,000.00
51.
H – Columns
Metric tons
100,000.00
TABLE 2.5: RAW MATERIALS AVAILABLE LOCALLY BUT IMPORTED
SUB-SECTOR: IRON AND STEEL
S/N
RAW MATERIALS
UNIT OF MEASUREMENT
UNIT COST (N) 2006
1.
Electrode
Pkts
1200
2.
Nuts & Bolts
Mt
From N5.00
3.
Iron Rods
Mt
1100
4.
Flat Sheets
M2
5500
5.
Flat Bars
Lengths
800
6.
Mild Steel Plate
M2
3500
7.
Galvanized Steel Plate
M2
3500
8.
Stainless Steel Plate
M2
3500
9.
Channel Angle Iron
M2
3500
10.
Industrial Motors
Pieces
15000
11.
Reduction Gears
Pieces
15000
12.
Saw Blade
Pieces
200

11
13.
Pulleys
MM
2500
14.
Angle Iron
Lengths
600
15.
Aluminum Coils
Mt
670,000
16.
Stainless Steel
Sheets
30,000
17.
Stainless Steel Rods
Mt
-
18
Tin-Free Steel
Kg
-
19.
Cast Iron
Lengths
-
20.
Angle Iron
Mt
-
21.
Electric Motors
Pieces
15,000
22.
Industrial Motors
Pieces
15,000
23.
Gear Boxes
Pieces
-
24.
High Carbon Steel
Mt
330,000
25.
Steel Pipes
Mt
-
26.
Saw Blades
Pieces
200
27.
Bolt and Nuts
Pieces
-
28.
Hot rolled steel
Mt
101,708.00
29.
Cold rolled steel
Mt
111,587.00
30.
Tin sulphate
Kg
350.00
31.
Colouring agent
Kg
250.00
32.
Nickel acetate
Kg
200.00
33.
Aluminum fluoride
Kg
150.00
34.
Aluminum silicon
Kg
260.00
35.
Alkaline additive
Kg
240.00
36.
Hinges and Bolts
Pieces
-
37.
Mild Steel Flat Bars
Lengths
-
2.4 Specifications of Raw Materials for Iron and Steel Production
2.4.1 Iron ore
2.4.2. Chemical Requirements
DIRECT REDUCTION BLAST FURNACE
PROCESS PROCESS
Parameters Composition %
Fе total 66.8min 63.8+ 54.82++
Fe203 95.5min 88.9+ 74.50++
Fe0 0.5 1.0+ 3.50++
Ca0 0.1 0.15+ 4.0++
Gangue (Sio2+A1203) <2.7 9.60+ 12.0++
Mg0 0.1 Trace+ 1.0++
P 0.003max 0.03+ 0.044++
S 0.003max 0.004+ 0.08++
Loss on Ignition (L.O.I.) 1.2max 0.21+ 43.575++

12
2.4.3 Physical Requirements
DIRECT REDUCTION BLAST FURNACE
Parameters PROCESS PROCESS
Grain Size 0-8mm 90% 0 – 1mm+25-25mm++
8-20mm 10%
≤45 30%max
(Limit of dedusting system)
Moisture Content 10%max
Work Index (Grindability) 18Kwh/t at 45
324 mesh
14Kwh/t at 74
200 mesh
+ Iron Ore Concentrate
++ Lump Ore
2.5 Coke Blend/Coke/By-products
BLAST FURNACE PROCESS
2.5.1. Coal blend
(i) Chemical requirements Composition%
Volatile matter*
Moisture total 27.7-30.3
Ash** 5 – 9
Sulphur 10
0.5 – 0.9
(ii) Physical Requirement
Vertical shrinkage 5 – 7%
Bulk Density 0.69 – 0.96t/m3
2.5.2 Coke
(i) Chemical requirements Composition%
Volatile matter*
Humidity 1.5
Ash** 1.0
Suphur 1.3
1.2 max
(ii) Physical Requirements
Strength ISO M40 78 min
Abrasion ISO M10 9 min

13
2.5.3 By-Products
Gas yield (4600k Cal/Nm3) 320 – 335 Nm3/t coal
Ammonia yield 1.5 – 2.5 kg/t coal
Benzene yield 25 – 35g/m3
Sulphuretted Hydrogen 12g/Nm3
Tar yiel
2.6 Oxide Pellet/Sinter
Parameters DIRECT REDUCTION BLAST FURNACE
PROCESS PROCESS
2.6.1 Chemical Requirement Composition%
Oxide pellet Sinter
Fetotal 66.8 min 52.7
SiO2 – Al2O3 < 2.7 10.43
CaO 1.6 – 2.0 12.09
MgO 0.04 – 0.1 2.12
P 0.030 max 0.036
S 0.004 max 0.011
Basicity 0.6 – 1.0 1.36
Fe203 95.8 min 60.29
Fe0 0.3 13.55
2.6.2 Physical Requirement
Cold Compression Strength 3450N/Pellet min
Tumble Index (6.3 – 19mm) 93%min
Abrasion Index ( - 1mm) 5% max
Grain Size 9mm – 15mm 95% min
15mm – 19mm 1%max
6.3mm – 9mm 4% max
< 6.3 mm Nil
2.7 Limestone/Dolomite
Parameters DIRECT REDUCTION BLAST FURNACE
PROCESS (EAF Route) PROCESS (BOF Route)
2.7.1. Chemical Requirement Composition%
CaO 53.0 min 53.0 31.02+
R2O2 = Al2O3 + Sio2 3.0 max - 4.33+
MgO 0.6 max 0.64 20.76+
P - 0.013 0.013+

14
S 0.03 0.052 -
Fe total - 0.15 0.20+
Fe2O3 - 0.21 0.28+
MnO - 1.81 0.005+
Humidity (0.5% max in dry season)
5% max in wet season 2.05+
Loss on lgnition (L.O.I) 43.76 43.575+
2.7.2 Physical Requirement.
Grain Size Grain Size
25 – 60mm 100% 25 - 50mm 25 - 50mm+
25 – 55mm 90% 0 - 80mm 0 - 80mm+
At Kiln inlet (sinter plant) (sinter plant)
<25mm (fines) 5%
Hardness Coefficient - - 7%
Bulk density - - 1.40 t/m3
Dolomite
EAF - Electric Arc Furnace
BOF – Basic Oxygen Furnace
2.8. Specifications for Foundry Molding Sands.
2.8.1. Silica Sand
(i) Chemical Properties Composition %
SiO2 9
Fe2O3 0.6
Al2O3 2.0
CaO = 0
MgO = 0
SO3 = 0
Melting Loss 0.7
PH 7
(i). Physical Properties
Granulometry
Particles 20 microns = 3% to 6%
Fineness No. A.F.A. = 60 to 66 (RO-TAP Strainer)
Distribution on strainer = More than 80% on strainer

15
50 – 70 and 100
14000C
28.2 Zircon Sand
(i) Chemical Properties Composition%
ZrO2 60
SiO2 30
Al2O3 3
Fe2O3 1
L.O.I. 2
2. Physical Properties
mesh sizes
0.25 – 0.5mm 0.5
0.10 – 0.25mm 98.0
0.10mm 1.0
Sintering temp. 14000C mm
2.8.3 Chromite Sand
(i) Chemical Properties Composition%
Sio2 0.8
Al2O3 1.3
Cr2O3 42.5
Fe2O3 47.0
(ii) Physical Properties
Particle Size 0.13 – 0.60 mm 90
Sintering temp. 12500C.
2.8.4 Bentonite
Chemical Properties Composition %
SiO2 40 - 45
R2O3 (Al2O3 + Fe2O3 + Mn2O3) 23 - 28
CaO + MgO 6 - 8
H2O 10 - 15
L.O.I 17 - 23
Montimorillonite 70 - 75

16
2.8.5 Mould Character ties
(i) Physical Properties
Green Compression Strength 8.50 - 9.50 N/Cm2
Splitting Strength 1.50 - 1.70 N/Cm2
Dry Compressive Strength 19.00 - 21.00 N/Cm2
Moisture (Compactability) 45%
Hardness >75
Permenbility 150 - 180 Cm3/Min
(ii) Chemical Requirement Composition %
MgO 57 - 58
SiO2 2 - 4
Al2O3 4 - 6
Fe2O3 9 - 10
CaO 2 - 4
MnO 0.3 - 0.7
R2O3 10 - 11
LOI 10 - 11
(iii) Physical Requirement
Grain size >2000SSA
Sintering temperature 15000C
Sticking temperature 14500C
2.9 Investment Opportunities in the Sector
The Iron Steel industries operated at very low capacity utilization (0-5%) with the major industries (ASCL & DSC) not producing at all. It was observed that the main products of metal fabrications and manufacture sub-sector were doors and windows. For any meaningful increase in subsectoral capacity utilization, ASCL and DSC must statistically increase their capacity utilization up to 45%. However emphasis should be on the development and production of flat and alloyed steel which if fully developed would encourage greater activity in the foundry, metal (manufacture, and fabrication) sub-sectors, etc.
Table 2.6: Some of the additional industries needed to make the existing industries self reliance are presented as follows:-
Raw Materials
Estimated Planned Production /annum
Estimated Capacity of Existing Industries.
Estimated Capacity of Additional Industries
i) Iron ore concentrate
9,000,000
2,500,000
3 units of large scale capacity of 2,500,000 tons/annum. 1 unit of capacity 2,500,000 tonnes/annum already in place but yet to start

17
ii) Iron casting
iii) Steel casting
iv) Flat steel sheet
v) Alloy steels
vi) Steel forgings
vii)Refined zinc
viii) Aluminium
ix) Tin flat sheet
200,000
100,000
10,000
100,000
100,000
10,000
200,000
3,000
40,000
10,000
0
0
5,000
0
0
0
production.
4 units of medium scale plants of capacity 50,000 tonnes/annum.
9 units of small scale plants capacity 5,000 tonnes/annum.
10 units of small scale plant capacity 10,000 tonnes/annum.
1 unit of medium scale plant capacity of 10,000 tonnes/annum.
1 unit of medium scale plant capacity of 200,000 tonnes/annum.
1 unit of small scale plant of capacity 3,000 tonnes/annum.
2.10 Research and Development in the Sector
The utilization of Research and Development as a veritable tool for the growth of this important sector has not been embarked upon by most of the stakeholders. Thus, the traditional method of design and fabrication of proto type process machines and equipment. The inability of the promoters to recognize the importance of research and development is informed by inadequate knowledge/lack of basic training in their professions, financial constraints, cultural disposition and long gestation period between the application and actualisation of the research findings as captured during the analysis of the received questionnaires.
There has been belated attempts by some of the promoters to embark in rudimentary research and development in recent times, especially in the in the south West Zone. Thus, eleven (11) respondents out of 46 indicated that they conducted research and development, ranging from the design and fabrication of process machines, veneering of steel doors, reflex shadow forming to design and evaluation of machinery.
Periodic workshop and seminars should be organized to sensitze stakeholders on recent scientific findings in the country.

18
Recommendations
1. Regular training/workshop on modern fabrication techniques and technology transfer;
2. Regular supply of electric power and marking alternative energy source such as LPFO, gas, biogas, HPFO very affordable;
3. Removal of inherent bottle-neck to bank loan;
4. Proactive political will in project implementation viz: timely completion of Ajaokuta steel complex, Itakpe Iron Ore, Aluminium smelting and ban on export of aluminium scraps and copper scamps;
5. Transfer of research and development findings to the sector and setting-up R&D centres in each of the geo-political zones.
6. Ban on import of similar goods produced in Nigeria
7. Reduction of tariff (example removal of the additional increase on VAT);
8. Abolish multiple taxation and encourage tax incentives; and
9. Increased patronage of products from government and private organization.
2.11 Challenges and Opportunities
Based on the analysis of the collected questionnaires, most of the problems in the sector were related to the following items:
Raw materials
Main raw materials as listed in the Annex are available but getting costlier by the day because they are all imported. The capacity to produce some of them locally is available but not being put to use due to import dependent syndrome
Infrastructure
The state of infrastructure – electricity, water, roads, etc is very poor and frustrating in the sub- sector.
Operation and technology
Most of the respondents use inadequate tools and methods in their operations. The technology in practice at the plants is significantly outdated. Thus efficiency is very low and product quality doubtful in some cases. The main problem here is capacity building.
Equipment and machinery
Due to low funding, most of the respondents lack modern equipment that aid engineering work. This affects the quantity and quality of their products.

19
Finance
Though this is a serious problem of the sector, we believe that unless where a – c above are addressed, any financial intervention will yield less than optimum success. Consequently, any intervention in direction must be preceded by serious and comprehensive capacity building.
Political climate
This does not pose much threat to operators. Most of them are apolitical. They think and breathe on their business.
Government reform policies
The sector is yet to feel the impact of the policies in terms of lower cost of doing business, high local patronage particularly from the public sector or capacity building.
Power supply
Iron and steel business relies so much on electricity for heating, melting, cutting, fabrication etc. Operators in the zone are seriously under-supplied with power. PHCN supply is erratic and unreliable while the cost of providing alternative power source continue to rise all the time.
Cost of raw materials
More than 90% of raw materials used in the iron and steel and foundry sub-sector are imported. Most of them are however obtained locally through direct importers who ensure that these products are highly priced. A good number of operators are not performing optimally because of the continuous rising cost of raw materials and inputs.
Executive capacity
It was observed that most of the respondents do not have the required skilled and experienced workforce to drive their vision. They are populated by low class but talented workers whose skills and expertise fail when intricate and complex problems show up. There is great need to upgrade the capacity of workers in the sub-sector.
2.12 Government Policies affecting the Sector
1. Beneficial Policies
* Importation of capital goods – equipment and accessories are on zero duty.
* Export of finished good attracts Export Expansion Grant of up to 45% of values of products exported.
* Metal scrap export has been banned.
2. Adverse Policies
 Scraps are still being exported illegally

20
 Clearing process is yet to be shortened
 Cheap iron rods are imported which drive local producers out of business.
 Local fabricators of equipment and machinery are not protected from cheap imports.
2.13 Conclusion
The iron and steel sector is fundamental to the development and growth of the economy. It is therefore, imperative that the sector should not be allowed to deteriorate further. Obviously, the fall of the sub-sector will have a “falling effect” on such sub-sectors as real estate, automobile, furniture, simple machine, construction, basic office equipment, marine and many others.
We therefore recommend its resuscitation and nurturing in order to benefit maximally from the sub-sectors.
2.14 Recommendations
a. Efforts should be made by Government and its agencies to encourage local development of needed raw materials in order to reduce cost of inputs and ultimately create market for local fabricators and other operators.
The steel plants at Ajaokuta, Aladja, Oshogbo, Jos etc should be made to work by putting pressure on the concessionaires. Those that are yet to be privatized should be put to the market soonest.
The Iron Ore Plant at Itakpe should be streamed to feed the rolling mills.
b. Production capacities
i) The production capacity in the sub-sector is very low. In order to improve on this, the
operators should be trained and mentored;
ii) Locally-fabricated machines should be patronized by Government.
iii) Financial institutions should be encouraged to provide easier access to funds.
c. Research and development
Research institutions should be refocused to accord high priority to commercialization.
a) Finance

21
While many respondents have installed equipment, they lack the necessary working capital to operate at optimum level. Thus, there is need to design a policy that attracts finances to local fabricators and foundries.
b) Training
d. There is need to design a training programme for this sub-sector. Leading operators should be co-opted as facilitators in the training programme.

22
CHAPTER THREE
CHEMICALS AND PHARMACEUTICALS
3.1 Introduction
The chemicals, cosmetics and pharmaceuticals sector was dominated by multinational companies in the pre-independence period and up to the 1970’s. The major players in the sector included Glaxo, Pfizer, Sterling, Wellcome and PZ. By 1980, the sector witnessed phenomenal growth due mainly to Nigeria’s economic growth occasioned by the oil boom. This led to the establishment of more industries such as Smithline, Beecham, Afrab Chem, Vitabiotics, May and Baker, Ranbaxy, Bayer, Hoechst e.t.c.
With the indigenization decree of 1978, which required that 60% of the shares owned by multinational companies be retained by Nigerians, many multinational companies were affected and by the mid 1980’s when the Structural Adjustment Programme (SAP) was introduced, most of the companies sold their stakes. However, some of the multinational companies are still operating in Nigeria. During these periods average capacity utilization fluctuated between 50% and 75% but it is currently below 50%.
The low capacity utilization could be attributed to a number of factors amongst which were shortage of petroleum products, scarcity of local raw materials, erratic power supply, high interest rate, low purchasing power, devaluation of the naira, e.t.c.
The chemicals, cosmetics and pharmaceuticals sector consist of the following sub-sectors:
- Agrochemicals and fertilizers;
- Basic chemicals;
- Automotive and Dry cell Batteries;
- Candles and crayons;
- Cosmetics and toiletries;
- Printing and writing inks;
- Insecticides, aerosols and pesticides;
- Petroleum and Petrochemicals;
- Pharmaceuticals;
- Safety matches;
- Soaps and detergents; and
- Paints and allied products.
The previous publications covered these 12 sub-sectors. However, in 2006 only 3 sub-sectors namely Agro-chemicals and fertilizer, pharmaceuticals and soaps and detergents were covered in the survey. Consequently, this synthesis will focus on raw materials sourcing in these sub- sectors.

23
3.2. Raw Materials Requirements and Sourcing
The raw material requirement for these sub-sectors are presented in Tables 3.2.1 and 3.2.3 respectively. The 2006 survey revealed that the demand for most of these raw materials were not met locally. However, as compared to the previous exercise, the per centage utilization of most of the raw materials increased even though the demand for the raw materials were not met locally.
Table 3.2.1: Capacity Utilization of Raw Materials: Soap and Detergent Sub-sector
S/N
Raw Materials
National Demand MT
Percent Utilization
Average utilization for this survey
Percent utilization from last survey
2003
2004
2005
2006
1.
Oils and Fats
1,200,000
51.8
62
66.5
66
58.68
57.47
2.
Caustic soda
124,000
718
76
78
78
75.95
70.57
3.
Sodium silicate
147,000
33.5
42
46
45
41.63
33.67
4.
Industrial salt (chloride)
105,000
47.5
51
52.5
60.5
52.88
47.45
5.
Glycerin
30
26.2
25
25
26
25.55
26.17
6.
Dyes (pigments)
8,540
250
42
41
41
37.45
25.82
7.
Kaolin
56,000
25.7
86
86
92
74.93
35.65
8.
EDTA
30
43
43.5
45
46
44.45
45.27
9.
Perfume
163,184
88.9
86
86
90
87.73
88.9
10.
Magnesium sulphate
4.1
80
70
70
62
70.50
79.57
11.
Flush/soap stock
300
60.3
71
72
75
71.15
60.32
12.
Sulphuric acid
24.012
66.5
71
72
75
63.40
71.45
13.
Sodium carbonate
14,629.07
66.6
65
62
60
63.40
71.64
14.
Sodium carbonate
82,000
3.2
40
56
62
40.30
20.9
15.
Sodium toluene
(sulphnate)
1,800
24
42
40
36
35.50
28
16.
Sodium carboxyl methyl cellulose
1,800
46
42
47.93
66.2
33.4
17.
Optical brightening agent
1,200
4.7
46
56
42.93
38.7
18.
Sodium Tripoly phosphate (STPP)
165,960
16.7
46
42
56
42.93
38.7
19.
Marble dust
150
27.8
87
42
82
83.45
70.5
20.
Phosphoric acid
12.6
80.8
42
84
41
35.43
38.1
21.
Titanium dioxide
1,200
16.7
35
42
24
26.25
33.3
22.
Nervan acid
2.7
20
42
26
40
51.00
82.9
23.
Tinpal
2.7
80
30
42
32
22.23
30.1
24.
Calcium carbonate
900
16.9
86
20
82
30.73
72.2
25.
Fuller earth
432
68.9
70
86
70
69.75
72.2
26.
Hydrochloric acid
750
69
46
70
43
40.56
50
27.
Ferric chloride
150
33.3
20
40
35
18.90
59.5
28.
Aceto Diphosphoric Acid (ADPA)
2.7
66.7
70
24
62
67.18
72
29.
Sulphur
120,000
33.3
46
70
72
52.83
33.3
30.
Sulphuric Acid (sodium alicyclic Benzene sulphate)
140,000
55.6
50
60
60
37.40
51.9

24
31.
Pure petroleum jelly
10
42.9
42
64
43
94.23
29.9
32.
Glycerol
30
50
48
46
46
74.5
50.00
33.
Ethanol
3,250
50
46
52
48
40.13
30.00
34.
Active Detergent Paste (ADP)
25,500
92.9
96
46
92
41.55
89.2
35.
Nivolak 0898
4,500
50
82
96
80
46.1
51.6
36.
Fatty Acids
125
38.5
40
86
41
51.30
35.1
37.
Colourant
220
40.2
38
41
46
69.55
39.8
38.
Dxtrin
8.4
42.4
48
42
46
38.90
46.8
39.
Talc
-
45.2
56
48
52
68.13
42.7
40.
White tallow
25,000
22.2
90
52
80
34
41.
Photine
172.8
38.6
40
86
39
36.7
42.
Soda Ash Light
40,000
62.5
68
38
70
62.9
Table 3.2.2: Capacity Utilization of Raw Materials: Agro-Chemicals and Fertilizers
S/N.
Raw Materials
National Demand (MT)
Average Percent Utilization Present Survey
Average Percent Utilization Last MTF Survey
1.
Alumina (hydrated)
12,400
45.8
45.8
2.
Amproluim
21.4
49.9
45.9
3.
Bone meal
2,525
72.2
69.2
4.
Breeder mix
1200
54.7
51.9
5.
Brewers spent grains
1300
52.8
45.9
6.
Broiler premix
1400
48.2
45.9
7.
Chick premix
1200
72.3
70.1
8.
Coating oil
900
62.9
62.9
9.
Copper oxide
4200
80.1
79.9
10.
Cotton cake
5800
78.9
69.9
11.
Fish meal
5209
72.4
63.7
12.
Furazolidone
5
43.2
41.6
13.
Groundnut cake
42,000
48
18.0
14.
Grower premix
1000
49.2
45.8
15.
Kaolin
7200
74.2
69.9
16.
Layer premix
2050
84.2
78.9
17.
Lime
200
74.5
71.3
18.
Limestone
210
82.5
78.9
19.
Lysine
1800
68
71.3
20.
Maize
78,000
78
78.4
21.
Maize offals
14,000
92
61.0
22.
Meat meal
1000
92.5
71.9
23.
Mentholine
2050
61.2
88.3
24.
Methionine
40
68.1
91.5
25.
Nitrovine
4.5
52.4
99.9
26.
Oxytetracycline
2.8
43.4
67.5
27.
Oysershell
4200
54.5
51.3
28.
Palm Kernel Cake
5412
92.2
39.9
29.
Phosphate rock
2,000
23
49.9
30.
Phosphoric acid
2500
5
72.9
31.
Potash
16500
84
81.8

25
32.
Rice
50
92
89.6
33.
Rice shaft
7200
93
69.8
34.
Sodium chloride (salt)
520
84.5
78.9
35.
Sorghum
14,000
95.6
94.0
36.
Soyabean
42000
98
93.1
37.
Spent grain
62000
98.9
98.5
38.
Sulphur
19,200
79.3
79.3
39.
Vitamins/protein/Mineral/Concentratetes
6214
98.5
78.5
40.
Wheat offal/Brain
7200
92.4
89.9
41.
Yeast
5
54.2
45.9
Table 3.2.3: Capacity Utilization of Raw Materials: Pharmaceuticals Sub Sector
S/N
Name of Raw Materials
National Demand MT
% Utilization
Average % last MTF Survey
Utilization Present survey
2004
2005
2006
1.
Paracetamol
7332.5
67.7
87.2
88.5
57.5
81.1
2.
Ascorbic acid
1006.4
83.2
75.2
88.3
70.6
82.2
3.
Phthalyl sulphathiazole
955.0
44.1
46.4
46.3
33.7
45.6
4.
Promethazine
100.1
43.1
43.6
56.2
47.5
47.6
5.
Sulphamerazine
12.3
33.6
34.1
35.2
26.2
34.3
6.
Sodium dihydrogen phosphate
50.8
46.1
47.2
50.6
25.8
47.9
7.
Sodium sulphite (anhydrous)
18.6
45.2
48.1
55.2
35.7
49.5
8.
Lactose
817.3
50.3
50.0
53.6
45.3
51.3
9.
Ammonium chloride
200.2
92.5
90.3
88.1
88.9
90.3
10.
Chloroquine phosphate
2635.2
84.0
84.2
89.9
79.6
86.0
11.
Metronidazole benzoate
44.9.7
66.0
68.1
76.6
60.3
70.2
12.
Pregelatinized maize starch
201.7
88.6
83.7
89.8
71.5
87.4
13.
Granulated sugar
30070.0
79.2
78.1
79.8
71.6
79.0
14.
Aspirin
716.8
45.2
35.5
36.1
20.9
38.9
15.
Sodium benzoate
31.4
32.0
28.1
38.0
28.0
32.7
16.
Benzoic acid
320.6
84.3
72.5
87.7
66.2
81.5
17.
Lemon oil
156.3
48.1
46.9
52.6
35.6
49.2
18.
Propylene glycol
927.6
44.0
42.0
46.1
38.7
44.0
19.
Peppermint oil
80.3
44.5
56.1
88.6
70.5
63.1
20.
Veegum
600.6
55.5
50.1
42.1
38.1
49.2
21.
Orange oil (Terpenless)
875.0
43.1
50.0
41.0
33.3
44.7
22.
Ethanol 96%
1125.7
84.2
84.8
90.1
82.9
86.4
23.
Grape extract
622.1
36.7
38.3
43.5
30.1
39.5
24.
Calcium glycerophosphate
30.2
76.8
71.5
72.6
72.2
73.6
25.
Dextrose
15242.0
86.2
84.4
88.7
72.2
73.6

26
monohydrate
26.
Vitamin D3 beadlets
100.5
56.2
56.1
76.3
50.0
86.4
27.
Acacia gum
2125.4
90.1
88.1
91.1
57.5
62.9
28.
Silicon dioxide
300.6
80.6
82.7
88.1
72.0
89.8
29.
Kaolin
1002.0
34.6
42.0
63.3
33.3
83.8
30.
Corn starch
637.2
50.2
56.1
58.4
51.9
46.6
31.
Folic acid
67.8
42.0
48.3
49.4
29.9
54.9
32.
Thiamine HCI
100.6
52.8
60.8
60.1
50.0
46.6
33.
Riboflavin
180.1
85.0
56.2
58.0
50.0
57.9
34.
Nicotinamide
257.0
81.6
94.2
90.8
89.1
66.4
35.
Chlorpheniramine
500.7
65.7
76.2
78.4
51.5
88.9
36.
Aspartame
300.7
35.8
33.4
43.3
35.1
73.4
37.
Magnesium trisilicate
1867.4
73.1
60.9
72.5
39.8
37.4
38.
Magnesium carbonate
5214.1
64.2
62.1
68.5
46.8
68.8
39.
Sodium bicarbonate
5612.7
50.0
61.6
58.3
42.7
64.9
40.
Microcrystalline cellulose
500.6
86.5
96.7
90.4
34.0
56.6
41.
Magnesium stearate
2216.1
72.6
73.3
84.9
36.7
91.2
42.
Penicillin potassium
50.3
68.4
72.5
64.2
62.9
76.9
43.
Gentamicin sulphate
102.2
53.2
50.6
56.6
57.3
68.4
44.
Benzoic acid
69.2
40.6
59.2
68.1
49.5
53.5
45.
Sulphur
235.2
64.8
71.249.8
59.7
60.5
55.9
46.
Methyl salicylate
331.0
60.1
53.0
66.4
46.1
65.2
47.
Clotrimazole
85.6
54.0
55.6
55.4
48.1
58.8
48.
Tioconazole
101.1
50.0
84.5
60.1
58.8
54.1
49.
Clotrimazole
80.5
72.1
96.5
80.0
34.6
55.2
50.
Neomycin sulphate
3032.6
90.2
82.6
96.8
35.8
78.9
51.
Prime thamme
12322.3
53.2
55.2
81.7
65.3
94.5
52.
Sodium chloride
518.0
40.6
75.6
60.1
61.9
81.6
53.
Dextrose monohydrate
2652.0
64.8
42.4
82.1
45.2
59.8
54.
Sodium chloride
822.3
60.1
31.4
35.1
45.7
79.4
55.
Potassium chloride
625.1
54.0
72.9
36.5
23.9
37.0
56.
Polyvinyl-pyrolidone
627.4
50.0
88.6
66.0
54.1
36.8
57.
Ammonical lead
825.0
72.1
60.1
92.7
57.8
73.1
58.
Leadoxide
311.5
90.2
67.1
59.2
79.9
91.9
59.
Microcrystalline powder
217.2
80.5
67.1
52.6
54.6
58.3
60.
Talcum powder
89.3
64.2
52.1
64.3
34.1
54.9
61.
Acetaminophem
640.0
80.5
64.9
72.4
45.2
55.2
62.
Chloroquine sulphate
18.0
33.6
30.0
33.1
45.2
65.5
63.
Glucose
14.2
42.5
35.9
44.3
34.1
31.1
64.
Ferric ammonium Citrate
184.9
80.5
30.2
32.0
41.1
40.3
65.
Diphenyl hydrazine HCL
480.3
94.5
50.1
54.5
19.9
31.1
66.
Diphenyl hydramine HCL
2680.0
55.6
84.2
84.0
56.9
40.3
67.
Tetracycline powder
1100.3
45.2
72.4
73.0
45.9
32.4
68.
Real liver extract
660.1
49.2
65.6
70.2
56.7
49.6

27
69.
Tincture of auranthe
191.8
59.2
70.2
70.6
29.5
81.0
70.
Oleum morrhue
130.2
30.2
80.5
82.6
34.7
70.6
71.
Styroper
80.3
40.6
62.4
60.1
45.1
68.3
72.
Acctaminophen
48.4
35.0
42.4
40.5
49.8
70.3
73.
Sodium hydroxide
2403.4
44.2
80.1
80.0
34.9
81.2
74.
Sodium citrate
50.2
74.8
78.9
79.2
41.0
56.3
75.
Citric acid
36.5
66.5
59.4
70.3
29.9
39.6
76.
Menthol
32.2
69.2
49.3
50.1
57.7
77.5
77.
Sodium carbonxy methyl cellulose
36.1
70.1
42.6
40.8
34.1
76.9
78.
Colour amaranth
18.4
80.5
42.8
64.2
23.9
65.4
79.
Essence mixed fruit
192.0
46.5
56.3
60.3
43.0
48.3
80.
Sorbitol
135.7
35.9
79.2
84.5
28.8
41.2
81.
Niposal
500.8
72.4
70.2
76.4
42.6
45.7
82.
Sucrose
72.6
72.6
56.4
60.1
40.3
63.4
83.
Polysorbatetween
219.8
66.6
50.0
51.2
51.9
81.4
84.
Colour etrazine
300.6
45.6
62.2
60.0
39.9
73.1
85.
Copour ponceav
284.1
40.2
55.8
60.1
18.9
54.1
86.
F.A.C
61.6
30.1
72.9
70.6
39.9
50.4
87.
Sorbic
12.7
64.2
60.0
59.8
23.8
60.9
88.
Ampicillin trohydrate
12.5
80.4
82.7
90.6
43.1
55.4
89.
Chloroform
16.6
72.8
22.8
40.5
39.9
69.9
90.
Iodine crystal
31.3
45.8
49.2
64.5
23.9
59.9
91.
Potassium iodide
132.1
50.1
72.2
65.3
46.3
82.1
92.
Chloroxylenol powder
86.1
60.5
62.0
60.3
89.9
32.2
93.
Calam
5.2
50.2
82.0
79.2
59.9
54.7
94.
Zinc oxide
2.6
65.5
42.5
50.0
77.2
72.8
95.
Calcium photothenate
62.3
60.1
33.6
33.2
44.9
61.5
96.
Vitamin A
861.4
72.9
56.5
48.6
39.1
80.5
97.
Banana four
230.3
33.2
82.6
82.6
48.4
43.7
98.
Ephedrine hydrochloride
6777.6
50.4
80.5
95.0
45.9
32.3
99.
Chroramphenicol powder
380.8
80.9
85.0
90.0
44.5
48.4
100.
Phythalysophatiazol
3.4
62.1
30.4
29.8
29.9
81.7
101.
Methyl salicylate
26.8
80.4
80.6
72.0
18.9
84.9
102.
Turpentine oil
10.3
38.6
72.5
85.9
23.0
85.2
103.
Evcalyptos oil
11.4
30.2
70.4
84.0
23.7
75.1
104.
Camphor
68.1
40.1
28.6
30.1
18.9
74.7
105.
Paraffin wax
88.0
80.0
62.0
10.5
19.7
26.7
106.
Petroleum jelly
10.5
79.2
30.1
40.0
18.5
26.8
107.
Kaolin
80.6
52.0
62.8
19.5
30.9
108.
Pectin
3.4
22.6
70.2
58.9
34.1
53.7
109.
Glycerine
26.8
72.5
45.1
50.2
23.5
65.0
110.
Methyl hydroxyl benzoate
10.3
66.9
62.8
68.3
44.4
42.9
111.
Propyl hydroxybenzoate
11.4
69.8
30.2
45.4
21.0
68.5
112.
Taracids
68.1
21.5
30.4
30.4
16.8
32.8
113.
Crosylic creosote
88.0
8.0
28.0
29.3
18.9
27.8
114.
Cosein
10.5
22.6
30.5
30.0
45.2
31.2

28
115.
Borax
18.2
46.2
40.1
42.0
56.8
40.7
116.
Chloroxylenol powder
185.4
66.0
18.5
30.2
56.1
25.1
117.
Castor acid
121
33.6
45.1
50.2
45.2
42.9
118.
Potassium hydioxide
50.6
74.522.8
62.8
68.3
44.4
68.5
119.
Terpenol
203.5
22.6
30.2
45.4
21.0
32.8
120.
Chlorinated terpene
193.2
28.2
30.4
30.4
16.8
27.8
121.
Lactalbumin
64.9
33.2
28.0
29.3
18.9
28.5
122.
Yeast extract
89.2
40.1
30.5
30.0
45.2
31.2
123.
Amphotericin B
24.3
26.5
40.1
42.0
56.8
40.7
124.
Newbern calf serom
17.3
18.5
30.2
56.1
25.1
45.2
Available data from 2006 report revealed that some “key” raw materials, including: kaolin, mineral acids, calcium carbonate (different forms) and talc were required by several other sub- sectors notably, Pulp and Paper, Textiles and Leather, Plastics and Rubber and Petroleum and Petrochemicals.
As a result of their versatility, a shortfall in the supply of these “key” raw materials would result in reduced capacity utilization in many industrial sectors. Since these materials enjoy a wide domestic market and occur locally in the form of mineral deposits, development and large scale exploitation of the minerals and their processing into industrial feedstocks would be of tremendous benefit to increase capacity utilization in many sectors of industries.
3.2.1 Raw material sourcing
As in previous years, most of the raw materials required by these sub-sectors were imported. Only a marginally small fraction is sourced locally. The distribution of groups of the raw materials according to source (that is local, partly local and partly imported) is shown in Tables 3.2.1, 3.2.3 and 3.2.4 in the 2006 report.
3.2.2 Imported raw materials
These raw materials represent those consumables the country cannot develop for now. In this category are materials like pharmaceutical kaolin, pharmaceutical starch, the mineral acids, sulphuric acid, sodium hydroxide, plastic derivatives and polymer based organic compounds, and organic solvents. The inability to produce these materials arose from the inadequate manufacturing infrastructure of the basic chemicals sub-sector and the non-completion of the petrochemical plants.
3.2.3 Raw materials (partly sourced locally)
These raw materials are so categorized that the country has the natural resources for their production, yet are still being imported. What is required is to develop the country’s technological capability through better infrastructure and human resource development.

29
3.2.4 Raw materials (locally sourced)
RMRDC survey reports have shown that a lot of the chemicals on the locally sourced column can be locally developed to substitute the imported ones. The problem is the fact that the country still lacks the technology required for their production to the requisite industrial specifications.
Tables 3.2.1,3.2.2 and 3.2.3 in the 2006 report show that several raw materials which are presently imported can be fully sourced locally. The existing as well as potential raw material sources for each of the 3 sub-sectors under consideration are briefly examined.
3.2.5 Raw materials specifications for the sector
In an effort to assist raw material suppliers to deliver raw materials of the right quality and specifications, RMRDC compiled the first publication titled “Raw Materials Utilized by Nigerian Industries” in 1996. The publication contained the various raw materials and the specifications for the various products being produced from these raw materials.
The 2005 edition of the publication was based on the ten sectors. The specifications for the major raw materials in the 3 sub-sectors covered in this report are presented in subsequent tables.
Agro-Chemicals and Fertilizers
(1) Alumina, Hydrated
% Al203 65
% Si02 0.01-0.02
% Fe203 0.01-0.02
%Ti02 0.003
% P205 0.001
% CaO 0.01
% 2nO 0.001
% Na2O total.. 0.3-0.4
% Na2O soluble 0.005-0.03
% Moisture content 0.2
% particle size distubation
larger than 106 microns 10-20
106-63 microns 30-50
63-45 microns 10-35
Smaller than 45 microns 20-40
% whiteness (457nm) 80
Density (g/cc) 2.4
Bulk density kg/m3 1200
(2) Calcium carbonate
% Si02 2.49
% Fe203 2 max

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% Mgo 6 max
% CaCo3
(3) Limestone
% cako3 90 max
% Sio2 5 max
% Fe203 2 max
% Mg0 6 max
(4) Phosphate (for fertilizer production)
% Moisture 0.53
% P205 36.45
% CaO 51-64
% P203 2.88
% Fe203 1.34
% AI203 1.54
% C02 1.52
% F 3.97
% Total Chlorine Traces
% Mg0 0.35
% Si02 3.25
% S03 0.37
(5) Sulphur
% moisture 0.37
% Sulphur 99.93
% organic matter 0.037
% Ash 0.033
Ti02 and others Traces
PHARMACEUTICAL
(1) Ascorbic Acid
Appearance - A white or almost white crystalline powder or
colourless crystals, discoloured on exposure to air and moisture
- Freely soluble in water and practically soluble in other solvents.
Melting Point (oc) - about 190 with decomposition
Specification optical rotation +20.5 – 21.5
Oxalic Acid - opalescence in sample solution should not be more
than that in the reference solution.

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Heavy metals - Not more than 10ppm
Sulphated Ash - Not more than 0.1%
% Assay - 99.0 – 100.5
(2) Aspirin (Acetyl salicytic acid)
Characteristics colourless crystals on a white crystalline powder.
Odourless or almost odourless
Solubility Slightly soluble in water ethanol, chloroform and
ether, clarity and colour of solution, clear and
colourless.
% Sulphated Ash not more than 0.1
% ASSAY 99.5 – 101.0
(3) Amphicilin trihydrate
Characteristics A white crystalline powder, odourless or almost
odourless.
Solubility Slightly soluble in water, practically insolable in ethanol
(9.6%) in chloroform, ether and in fixed oils.
% moisture W/W. 12 – 15
% Assay 96 – 100.5
(4) Benzoic Acid
Characteristics colourless crystals or a white crystalline powder,
Odourless
Solubility slightly soluble in water, boiling water freely soluble in
ethanol (96%), in chloroform, ether and fixed oils.
Heavy metals (pb) Ippm Halogenated compounds and halides 300ppm
% Sulphated Ash not more than 0.1
% Assay 99.0 – 100.5
(5) Chloroquine Phosphate
Description A white or almost white hygroscopic, crystalline
Powder
Solubility freely soluble in water, slightly soluble in alcohol, ether and methanol.
pH 3.8 – 4.3
Heavy Metals Not more than 20ppm
% Moisture Not more than 2.0

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% Assay 98.5-101.0 calculated with reference to anhydrous.
(6) Citric acid anhydrous
Characteristics Colourless crystals or a white crystalline powder
Solubility Soluble in 1 part of water and in 1.5 parts of ethanol
(96%), sparingly soluble in ether.
Heavy metal not more than 10 ppm
% sulphated Ash not more than 1-0
% Assay 99.5 – 101.0
(7) Clotrin mazole
Characteristics white to pale yellow crystalline powder, odourless.
Solubility insoluble in water, ethanol, chloroform and ether
Clarity and colour of solution clear.
% Sulphated Ash Not more than 1.0
% Assay 98.5 – 100.5
(8) Folic acid
Characteristics yellow to orange
Crystalline powder ordourless or almost odourless
Solubility insoluble in water and in most organic solvents
It dissolves in dilute acid and alkaline solutions
% sulphated Ash not more than 0.2
% Ash 96.0 – 102.0
(9) Granulated sugar
Appearance A white crystalline powder or lustrous, dry
colourless or white crystals
Solubility very soluble in water, slightly soluble in alcohol.
Acidity not more than 0.3ml of 0.01m sodium
hydroxide is required for neutralization.
Specific optical rotation +66.3-67.00
Loss on drying not more than 0.1%
Microbial count
Total Bacterial count: NMT 1000
Total Mould count: NMT 100
Total Yeast count: NMT 100
Coliform count, salmonella sp.
Staphylolocus sp. And
Pseudomonas spp. Absent

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(10) Magnesium trisilicate
Characteristics white powder
Solubility soluble in water, ethanol and glycerol, insoluble
in chloroform and ether
pH 2.7 – 3.3
clarity and colour of solution clear and not intensely coloured
lead (pb) 2ppm
% sulphate Not more than 0.1
% Assay 98.5 – 101.5
(11) Metronidazole benzoate
Appearance white or slightly yellowish crystalline powder or
Flakes
Solubility practically insoluble in water freely soluble in
methylene chloride
soluble in acetone, slightly soluble in alcohol,
very slightly soluble in ether
Heavy metals not more than 20 ppm
% Assay 98.5 – 101.0 calculated with reference to the
dried substance.
(12) Micro crystalline cellulose
Synonym avicel pH 101
Appearance a white or almost white fine granular powder
Solubility practically insoluble in water, acetone, ethanol,
toluene and in dilute acids and in a 50g/l solution of sodium hydroxide. 50mg in 10ml ammonical solution of copper tetramine dissolves completely leaving no residue
pH (supernatant) 5.0-7.5
Ether soluble substances the residue weighs not more than
5.0mg(0.05%)
Water soluble substances the residue weighs not more than 12-5mg
(0.25%)
Starch no blue colour is produced
Heavy metals not more than 10.0ppm
% loss on drying not more than 6.0
Microbial count
Total Bacterial count: NMT 1000
Total Mould count: NMT 100
Total Yeast Count: NMT 100

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Coliform count, salmonella sp.
Staphylococcus sp. and
Pseudomonas sp. Absent
(13) Nicotinamide
Characteristics colourless crystal or a white crystalline powder,
odour faint and characteristics.
Solubility soluble in water and ethanol
Lead (pb) 1 ppm
% Assay 99.0 – 101.0
(14) Paracetamol
Appearance A white crystalline powder
Solubility sparingly soluble in water, freely soluble in
alcohol, very soluble in ether and methylene chloride.
4 Aminophenol Not more than 50 ppm
Heavy metals Not more than 20 ppm
% loss on drying Not more than 0.5%
% sulphated Ash Not more than 0.1
% Assay 99.0 – 101.0 calculated with reference to dried
Substance
(15) Propylene glycol
Appearance A viscous clear colourless, hygroscopic liquid.
Miscibility Miscible with water and alcohol
Relative density (at 20oC) 1.035 – 1.040
Refractive index (at 20oC) 1.431 – 1.433
Boiling range 184 – 1890C
Heavy metals not more than 5ppm
% moisture not more than 0.2
% sulphated Ash not more than 5mg (0.01)
(16) Riboflavin
Characteristics yellow to orange yellow crystalline powder
Solubility very soluble in water, insoluble in ethanol,
acetone, chloroform and ether
specific optical rotation 115 – 135o
% Assay 98.0 – 101.0

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(17) Sodium carboxymethyl cellulose
Synonym carmellose sodium
Appearance a white or almost white, granular powder,
hygroscopic after drying
Solubility practically insoluble in acetone, ethanol and
toluene. Easily dispersed in water giving colloidal solution.
% chlorides not more than 0.25
Heavy metals not more than 20 ppm
% sulphated Ash 20.0 – 33.3
% Microbial count
Total bacterial count : NMT 1000
Total mould count : NMT 100
Total yeast count : NMT 100
Coliform count; salmonella sp.
Staphylococcus sp and
Pseudomonas Absent
(18) Sodium benzoate
Appearance A white crystalline or granular powder or flakes,
slightly hygroscopic
Solubility freely soluble in water, sparingly soluble in
alcohol (90% v/v)
Solution clear and colourless
Chlorides not more than 150 ppm
Heavy metals not more than 10ppm
% Assay 99 – 100.5
(19) Sodium bicarbonate
Characteristics white, crystalline powder, odourless
Solubility soluble in water, insoluble in ethanol
Chloride not more than 150ppm
Clarity and colour of solution/ clear and colourless
Sulphanated not more than 150ppm
(20) Sodium Chloride
Characteristics colourless crystal or a white crystalline powder,
odourless
Soluble in water/slightly soluble in ethanol and glycerol
Clarity and colour of solution/clear and colourless
Arsenic Not more than 1ppm
Lead (pb) not more than 1ppm

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Iron not more than 20ppm
Bromide not more than 50ppm
Phosphate not more than
(21) Sodium sulphite (Anhydrous)
Formula Na2SO3, 126.0g
Characteristics A white powder
Solubility Freely soluble in water and very slightly soluble in alcohol
Iron Not more than 10ppm
Heavy metals Not more than 10ppm
Assay, % 95.0 – 100.5
(22) Sorbic acid
Characteristics A white or creamy-white powder. Odour; faint
and characteristic
Solubility Slightly soluble in water and in fats and fatty
oils, soluble in 10 parts of ethanol (96%) and in 20 parts of ether
Assay, % 99.0 – 100.5
(23) Sorbitol
Characteristics A white crystalline powder, odourless
Solubility Practically insoluble in chloroform and in ether
Sulphated ash, % Not more than 0.1
Assay, % 98.0 – 1010
(24) Sulphathiazole
Characteristics A white or slightly yellowish, crystalline powder
Solubility Practically insoluble in water, slightly soluble in
alcohol, practically insoluble in ether and in methylene chloride
Melting Range, OC 200 - 203
Sulphated ash, % Not more than 0.1
Assay, % 99.0 – 101.0
(25) Sulphamethoxazole
Formula C10H11N3O3S1 253.3g
Appearance A white or almost white, crystalline powder
Solubility Practically insoluble in water, slightly soluble in

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acetone, sparingly soluble in alcohol. Dissolves in dilute solutions of sodium hydroxide
Loss on Drying Not more than 0.5%
Sulphated Ash, % Not more than 1.0
Assay, % 99.0 – 101.0 calculated with reference to dried
Substance.
(26) Starch (Maize)
Appearance A matt, white to slightly yellowish, very fine
powder which creaks when pressed between the fingers, tasteless.
Solubility Practically insoluble in cold water and
in alcohol.
Identification A thin cloudy mucilage is formed on boiling
with water
Foreign Matter Not more than traces of cell membranes and
protoplasm are present
Loss on Drying, % Not more than 15.0
Microbial Count,
Total Bacterial Count NMT 1000
Total Mould Count NMT 100
Total Yeast Count NMT 100
Coliform Count, Salmonella sp,
Staphylococcus sp and
Pseudomonas spp Absent
(27) Sunset Yellow
Characteristics Orange-red crystals
Solubility Soluble in water, slightly soluble in ethanol
pH(2% w/v) 4 – 5
Dye content, % Not less than 11.0
Arsenic Not more than 2ppm
(28) Tartaric Acid
Characteristics Colourless crystals or a white, crystalline
powder
Solubility Soluble in less than 1 part of water and 2.5
parts of ethanol (96%)
pH (1% w/v Suspension) 3.5 – 6.0

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Assay, % 99.5 – 101
(29) Tetracycline
Characteristics A yellow crystalline powder, odourless
Solubility Soluble in ethanol (96%) and in methanol,
sparingly soluble in acetone
pH (% w/v Suspension) 3.5 – 6.0
Sulphated Ash, % 0.5
Assay, % 95 – 100.5 calculated with reference to the
dried substance
(30) Zinc Oxide
Characteristics A soft white or faintly yellowish-white
amorphous powder, free from grittiness;
odourless
Solubility Practically insoluble in water and in ethanol
(96%). It dissolves in dilute mineral acids
Assay, % 99 – 100.5
3.3 Soap and Detergent Sub-Sector
(31) Aluminum Sulphate
Appearance White Crystalline Powder
Alumina (AI2O3),% 16 – 18
pH (10% solution) 2.4
Copper 5ppm, max.
Cobalt 5ppm, max
Arsenic 5ppm, max
Iron as Fe2O3 200ppm, max
Chromium + Nickel 20ppm, max
(32) Soda Ash for detergent manufacture
Na2 CO3 % 97.5 min.
Moisture, % 2.0 max
NaHCO3 % 2.0 max
Fe, ppm 20, max.
Ni + Cr, ppm 10 max
Cu, ppm 1 max
Ar, ppm 10 max
Water Insoluble, % 0.5 max
Bulk Density Kg/m3,
% Dense 1005
Light 500

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Sieve (BSS Mesh),
% Light R22 nil
R60 6 max
Dense R14 0.5
R30 35.0
White Crystalline Powder
(33) Soda, caustic (Liquid)
NaOH, % 45-50
Na2CO3,% 1.0 max
NaCI, % 0.5 max
Na2SO4, % 0.05 max
Water insoluble,% 0.5 max
CIo4, ppm 50 max
Fe, ppm 10 max
Cu, ppm 1.5 max
Ar, ppm 1.0 max
Hg, ppm 1.0 max
Appearance Clear water – like liquid, free from suspended
Matter
(34) Sodium carbonate for soap and detergent
Appearance White Crystalline Powder
Na2CO3, % 97.5 min
Moisture, % 2.0 max
Ni + Cr, ppm 1.0 max
Cu, ppm 1 max
As, ppm 1.0 max
Water insoluble, % 0.5 max
Bulk density, Kg/m3 Dense 1005
Light 500
(35) Sodium hydroxide Liquid for soap production
Appearance Clear water – white liquid
free from suspended matter
NaOH, % 45-50
Na2CO3, 1.0 max
NaCl,% 0.5 max
Na2SO4,% 0.05 max
CI04, ppm 50 max
Fe, ppm 10 max
Cu, ppm 1.5 max
As, ppm 1.0 max

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(36) Sodium tripolyphosphate (STPP) for detergent manufacture
P2O5, % 57.0
pH in 1% Solution, % 9-10
Loss at 130oC, % 1 max
Temp Rise TestoC 11.5-14
Na5P3O10, (ortho),% 90 min
Na4P2O7,% 6 max
Na3PO4,% 2 max
Fe, ppm 100 max
Cu, ppm 5 max
As, ppm 10 max
Ca, ppm 100 max
Mg, ppm 100 max
Sieve (BSS Mesh)%, R60 3 min
R 100 90 min
R 200 75 min
Appearance White Powder
(37) Titanium dioxide for soap manufacture
Appearance Very white powder free from foreign particles
Purity, % 98.5 min
pH, in 10% solution 6.1-6.7
Loss (105oC), % 0.5 max
Bulk Density g/ml, 1 Tape 0.42-0.50
50 Tape 0.55-0.65
Lead, ppm 20 max
Arsenic, ppm 10 max
Sieve (BSS Mesh), % 10 max
The detailed listing of specifications of all the raw materials can be found in the “Handbook on Specifications of Raw Materials Utilized by Nigerian Industries” RMRDC publiction.
3.4 Capacity Utilization Profile
3.4.1 Agro chemicals and fertilizers
With the exception of vitamins, mineral concentrates, biocides and herbicides, all other raw materials required for the agro chemicals sub-sector can be fully sourced locally as presented in table 3.1.1 of the 2006 report. It is encouraging to note that the 2006 survey report shows high capacity utilization in this sub-sector, particularly the poultry feed industry. For example, the typical percentage capacity utilization values in the 2007 report for some of the feed raw materials that can be fully sourced locally are as follows: bone meal, 72.2%; chick primex 72.3%; coating oil 62.9%; copper oxide 80.1%, cotton seed cake 78.9%; fish meal 72.4%; kaolin 74.2%;

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layer premix 84.2%; lime 74.5%; limestone 82.5%; maize 78%; palm kernel cake 92.2%, etc. Although a good fraction of these materials are still being imported, the high capacity utilization is a welcome indication of increased local sourcing of imports in this sub-sector. Infact some items that are presently fully imported such as gammaline base and lindane (technical-benzene hexachloride) can be manufactured locally using a high percentage of local raw materials.
3.4.2: Pharmaceuticals
In order to examine the sourcing of raw materials for the domestic pharmaceutical industry many of the raw materials required by the sub-sector have been grouped into five classes. In principle it should be possible to source all the excipients, some of the diluents, additives and active ingredients locally. In practice however, very few raw materials for this sub-sector are sourced locally, and the locally sourced materials could hardly meet more than 10 percent of the industrial demand.
Over 40% of the raw materials used in the pharmaceutical industries are still being imported. These include:
i) Solid diluents - dextrose and lactose, cellulose and industrial
Salt
ii) Builders - acacia, glucose starch, and mucilage.
iii) Disintegrants - starch obtainable from maize, rice, yam,
cassava, and cocoyam.
iv) Mineral-based excipients kaolin and bentonite, borax, calamine and
chalk (gypsum).
v) Sweetening agents - granulated and liquid sugar and saccharin
vi) Flavouring agents
vii) Liquid diluents - ethanol, methanol, isoprophyl alcohol,
kerosene and propylene glycol.
3.4.3. Soaps and detergents
Oils and fats and caustic soda form the major raw materials for the soap industry. Whereas oils and fats (in particular palm kernel oil and palm oil) are sourced locally, no serious effort, either by Government or private entrepreneurs, is being made to source caustic soda locally. Caustic soda is produced basically from salt (Sodium chloride). Large salt deposits have been suspected at several locations within Nasarawa, Ebonyi, Cross River and Kebbi states. RMRDC and other stakeholders are making efforts in exploitation of the common salt in these locations.
Most of the linear alkyl benzene required for detergent production is now sourced locally from the Kaduna Refinery and Petrochemicals Company (KRPC). Even the other raw materials required by the sub-sector are fully or partially sourced locally; these include: calcite, calcium carbonate, ethanol, glycerin, kaolin, marble dust, petroleum jelly, sodium silicate, and starch. Until the local basic chemical industry is better developed several of the chemical raw materials shall continue to be imported.

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3.5 Potential for Local Substitutes
Nigeria is a richly endowed nation. There are potential local substitutes that can be used in the sector and other locally available raw materials that need to be upgraded to meet the quality required for the various industries in the sector. The 2006 survey on the sector identified the following raw materials that could be sourced locally.
3.5.1 Agro-chemicals and fertilizers
The raw materials identified in this sub-sector in the 2006 survey were phosphate, limestone, ammonia, nitrogen, urea and ball clay. However, zinc and sulphur were partly imported. Nigeria has the capacity to produce Dextrin, Bone Glue, Gum Arabic, High Fructose Corn Syrup, Fatty acids and essential oils, if necessary funding is made available to commercialize the research results already obtained. Agro-chemicals and fertilizers are valuable inputs into the food security component of the 7 – Point Agenda and Vision 2020 of the present administration. Investment in these areas is therefore very critical.
Phosphate deposits have been located in Sokoto and Ogun states. The deposits have been characterized as reported by the Nigerian Geological Survey Agency and Imperial Institute, London. The average P2O5 content which is a major characteristic of both granular and nodular phosphate was found to be 34.5-36.25%10/w. This compares favourably with the 36.6% obtained from phosphate rock imported from Togo. The Federal Super Phosphate Fertilizer Company, Kaduna, is sourcing a major part of its phosphate requirements locally. The only fertilizer company at Onne, Port-Harcourt which used to produce urea and ammonia has been closed down. However, with the privatization of the company, it is hoped that production of urea and ammonia would resume so that local sourcing of these raw materials would improve significantly.
The Raw Materials Research and Development Council establishmed an industrial grade kaolin plant located at Gwarzo, Kano state. Kaolin deposits have been found across the country with their chemical compositions and other characteristics identified. Kaolin is used as a filler in the production of fertilizer with an estimated reserve of 2 billion tonnes of kaolin in the Country. More plants need to be established so as to sustain the supply of this input into the production of fertilizer.
3.5.2 Pharmaceuticals
Pharmaceuticals can be obtained from natural sources such as plants, animals and microorganisms. They can also be chemically synthesized. However, the major sources of pharmaceuticals are plants. It is estimated that about 25% of the world’s pharmaceutical products are derived from plants. The National Institute for Pharmaceutical Research and Development (NIPRD) Idu, Abuja, has carried out extensive work towards development of local substitutes for imported pharmaceutical raw materials. One of such efforts has resulted in the development of a drug called NIPRISAN ,which is used for the treatment of sickle cell anemia. Similarly the Nigerian Natural Medicine Development Agency (NNMDA), Lagos has documented

43
medicinal plants available for exploitation all over the country. Investors in this sector may avail themselves of these opportunities.
Considering the limited capacity of developing countries to exploit medicinal plants, the United Nations Industrial Development Organization (UNIDO) has made available a list of 68 medicinal plants that could be utilized for the production of pharmaceuticals. The complete list of the medicinal plants is presented in the 2006 report (Table 4.15).
The survey report of 2006 identified the following pharmaceutical raw materials are available locally – Maize starch, Acacia, Sodium Chloride and Caramel. Other raw materials identified as partially sourced locally were Dicalcium phosphate, Citric acid, Lactose, Calcium Carbonate, Carboxy Methyl Cellulose, Sodium benzoate, Petroleum jelly, Vegetable oil, Ferrous gluconate, Ferrous fumarate, Vitamin B12 and Vitamin C.
The survey also indicated that of the 476 identified raw materials in the sub-sector only about 5% is sourced locally. This could be attributed to the sophisticated technology involved in the production of pharmaceuticals.
3.5.3 Soaps and detergents
The raw materials for the sub-sector are organic, inorganic base and fragrance/colourants. The major raw materials for the soap and detergent sub-sector are oils and fats, specifically Palm Kernel Oil (PKO), Palm oil, Caustic soda, and Linear Alkyl Benzene.
Both Palm kernel oil and Palm oil are produced in abundance in the country. However, caustic soda is imported despite large salt deposits identified at several locations in Benue and Cross River troughs, Ebonyi, Nasarawa, e.t.c.
The Linear Alkyl Benzene, which is used in the production of detergent is produced by the Kaduna Refinery and Petrochemicals Company. Other raw materials that could be sourced locally are perfume, essential oils and colourants.
For the Palm kernel oil and Palm oil which are sproduced from oil palm tree, there is the need to establish more plantations to replace the ageing ones. It is also imperative to develop improved varieties of the trees using tissue culture and genetic engineering to be able to meet the ever increasing demand for these raw materials.
3.6 Industries Operating in the Sector
A total of sixty companies were covered in the sector during the 2006 survey. Six out of this number were in the Agro-chemicals and fertilizer, seventeen (17) were in the pharmaceuticals, thirteen were listed in the soaps and detergents while the rest belong to chemicals sub-sector and research and development institutions.
In the 2003 survey a total of 153 companies were covered in the Agro-chemicals, pharmaceuticals and soaps and detergents sub-sectors. Eleven (11) in the Agro-chemicals, forty

44
(40) in soaps and detergents and one hundred and two (102) in the pharmaceuticals sub- sectors. It is evident that about 58% of the companies listed in 2003 have either not been covered or closed down.
3.7 R&D Activities in the Sector
Research and development in the chemicals and pharmaceuticals sector is capital intensive. Consequently, companies in this sector, mostly multinationals, conduct their R&D abroad. However, research institutes with mandates relevant to the sector have done significant works in trying to develop local substitutes for imported chemicals and pharmaceuticals. The National Institute for Pharmaceutical Research and Development(NIPRD), Idu, as mentioned earlier developed NIPRISAN for the treatment of sickle cell disorder. Efforts are targeted at the production of other local pharmaceuticals using the Institute’s pilot drug manufacturing facility.
Similarly, the National Research Institute for Chemical Technology (NARICT), Zaria, has developed a number of chemicals from local sources. Adequate funding for R&D and linkages with user industry who would commercialise findings is required.
3.8 Recommendations
The survey revealed that the wealth of natural resources could be developed into raw materials for the chemical and pharmaceutical industries. Unfortunately, these potentials have not been fully exploited. Most companies have relied heavily on imported raw materials, equipment and spare parts in addition to having low level of R&D based on the observed persistent problems. The recommendations are made under the following sub-headings:
i) Production capacity and products
ii) Research and Development
iii) Mechinery and Equipment
iv) Infrastructural Facilities
v) Finance
3.8.1 Production capacity and products
1. Government should sustain the enabling environment created through the increased enforcement activities of NAFDAC and SON to curtail dumping of fake and substandard products.
2. Local manufacturing industries should establish formal relationship with relevant R&D institutions to conduct researches which are necessary to improve the quality of their products.

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3. Pharmaceutical companies should take advantage of the ban lifted on drugs made in Nigeria by Ghanaian and Sierra Leonean authorities to increase export of their products.
4. The Federal and State Governments should make it mandatory for their various health institutions operating Drug Revolving Fund (DRF) and service providers on NHIS to procure and use NAFDAC registered essential drugs produced by local pharmaceutical industries.
3.8.2 Research and development
a) Government should envolve policies which will ensure that companies and relevant research institutes engage in R&D for local raw materials development.
b) Research institutes/institutions of higher learning should be adequately funded and challenged with specific national priority projects to be completed within a given time frame.
c) Companies, research institutes and other relevant institutions should be encouraged to collaborate on research and development of local raw materials.
d) Government should identify areas of technology inadequacies with respect to base metals, plastics and ICT and make policies to address them.
3.8.3 Machinery and equipment
a) The National Engineering Infrastructure should be developed.
b) The Scientific Equipment Development Institute (SEDI), in Enugu and Minna, Projects Development Agency (PRODA), Enugu, African Regional Centre for Engineering Design and Manufacture (ARCEDEM), Ibadan and the Industrial Development Centres and other individual organisations should be upgraded.
3.8.4 Infrastructural facilities
1. Government should as a matter of priority make conscious efforts to improve shortages in power generation, fuel and water supply .
2. Government should facilitate the completion of Inter Modal Transport System to facilitate haulage of industrial goods. In addition, government should improve the facilities in telecommunication to make it more accessible.
3.8.5 Finance
1. A stable value of the naira should be sustained to facilitate strategic planning.
2. Financial institutions should be encouraged to grant medium and long term loans to industrialists and entrepreneurs to expand and establish industries.

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CHAPTER FOUR
ELECTRICAL AND ELECTRONICS SECTOR
4.1 Introduction
The ever-decreasing socio-economic and industrial activities in the electrical sector have been of major concern to the stakeholders, industrialists, scientists, entrepreneurs and the general public in the past years. In this sector, little or no effort has been made to adopt a strategy of promoting its rapid development. With successive governments, different policies were introduced to reduce dependence on imported electrical and electronic goods/ components. These have however, not been quite successful.
The sector was divided into, five subsectors, along the lines of Multidisciplinary Task Force – Electrical and Electronics (MTF-EE) subdivision in 1989, to facilitate enumeration, viz:
a. Electric Bulbs, Lamps, Fittings and Electrical Accessories sub-sector;
b. Electronics/Telecommunications Equipment and Gadgetry sub-sector;
c. Electrical Instrumentation, Power Control and Distribution Equipment sub-sector;
d. Refrigeration, Air conditioning and Domestic Appliances(RADAMA) sub-sector; and
e. Wire and Cable sub-sector.
4.2 Raw materials requirement
The raw materials used by the industries in the sector are broadly categorized as
a. Primary Raw Materials
b. Completely Knocked Down(CKD) parts; and
c. Semi-Knocked-Down (SKD) components.
4.2.1 Primary raw materials
Some of the primary raw materials are obtained from local sources. These include clay, calcium carbonate, feldspar, adhesives, silica sand, paints, oxygen, PVC compounds, polyethylene, sulfuric acid, sodium chloride, carbon, soda ash, transformer oil, talc, starch, wood, aluminum bar/rod/cast, copper wires and cables, iron rods and bars, and tin. It should be noted that some of these are produced from imported raw materials. Examples include aluminum bar/rod/cast from imported aluminum billets and copper wires from imported copper billets.
4.2.2 Completely Knocked Down(CKD) parts
CKD are the simplest components from which electrical/electronics products are built or assembled. CKD parts are normally supplied by the very big electrical/electronics manufacturing firms existing in the industrialized countries of the world such as Japan, Germany, United States of America (USA), Taiwan and so on. These firms regard this activity as another means of selling their products albeit in kit form and as a result expect buyers to purchase the kit as a whole regardless of whether they have need for all the contents of such kits. Thus, most of the completely-knocked-down(CKD) parts are imported. The few that are made locally(mostly from the imported raw materials) are cable logs,

47
fuses, fuse holders, knobs, plastics frames, gaskets and insulators. A few carbon resistors made locally are being used by the informal sector.
Semi-Knocked-Down (SKD) Components
SKD parts are assembled from CKD parts employing in most cases specialized techniques and expensive machines both of which are not within the reach of the small-scale enterprises. SKD parts may be supplied together with CKD parts as kits or may be sold separately as sub-assemblies or spares. Apart from circuit breakers, loud speakers and relays, all other Semi-Knocked-Down (SKD) parts are imported.

48
RAW MATERIALS SHORTFALL BETWEEN REQUIREMENT AT FULL AND CURRENT CAPACITIES
Tabulated below are raw materials shortfall between requirement at full current capacities by various sub-sectors.
TABLE 4:1 SUB-SECTOR: ELECTRICAL BULBS, LAMPS AND ACCESSORIES
Most of the companies under this sub-sector have gone down. Only few companies are operating. Most of the basic raw materials are imported and the cost of production is too high. The cost of production in Nigeria is said to be nine (9) times higher than that of china, four (4) times that of Europe and two (2) times that of Ghana. With the near zero manufacturing activity in the sub-sector, employment level is also affected and Capacity utilization is below 35%.
TABLE 4.2: SUB-SECTOR: ELECTRICAL POWER CONTROL
S/NO.
NAME AND ADDRESS OF FIRM
RAW MATERIAL DESCRIPTION
UNIT OF MEASUREMENT
ANNUAL CAPACITY
SHORTFALL %
INSTALLED
CURRENT
1.
ELECTRICAL METER CO. NIG. PLC
Plot 30 – 32, Light Industrial Area,
P.M.B. 660, Zaria, Kaduna State.
i. Electric steel strip in coil
ii. Deep drawing steel strip in coil
iii. Copper wire flat and round
iv. Aluminium strip
v. Brass section rod/sheet
vi. Phenolic resin
Kg
Kg
Kg
Kg
Kg
Kg
88,400
58,740
47,320
8,460
59,820
229,260
33,400
23,863
19,223
3,437
24,302
93,137
62
59
59
59
59
59
S/NO.
NAME AND ADDRESS OF FIRM
RAW MATERIAL DESCRIPTION
UNIT OF MEASUREMENT
ANNUAL CAPACITY
SHORTFALL %
INSTALLED
CURRENT
1.
BENNETT INDUSTRIES LTD.,
Plot D, Ikosi Road, Oregun, Ikeja, Lagos State
i. Cold rod steel sheet
ii. Lamp holders in coil
iii. Cables
iv. Ballasts
v. Grommetts
vi. Polished Aluminium reflector
vii. Tough heat resistant glass
viii. UV protected plastic shade
ix. Capacitors
Tonnes
Pieces
Tonnes
Pieces
Pieces
Tonnes
Pieces
Pieces
Pieces
42.5
125,000
475,000
125,000
26,250
6,500
7,000
21,250
22,500
23.5
57,500
262,500
57,500
11,000
4,250
5,625
10,000
10,000
45
54
45
54
58
35
20
53
56

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