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NASSI begins agric industrial cluster scheme

By BusinessNews Staff on October 5, 2014

The Nigerian Association of Small Scale Industrialists said it has introduced an agro-allied industrial cluster scheme.

The National Vice President of NASSI, Chief Duro Kuteyi, said the decision to begin with agriculture was based on the abundance of raw materials for production, without relying on imports.

He said the scheme, under the value chain, would provide at least 35 jobs at the ward level in all 774 local government areas in the country.

Kuteyi said under the scheme, established and specialised industries would provide their platforms as cluster hosts for the union of small-scale entrepreneurs.

According to him, the benefits of such a cluster would be to have a common labour pool with the aim of enhancing close working relationship between firms along the value chain.

The NASSI president said it would also afford people the opportunity to use common facilities, as well as reduce transaction costs, while enhancing the spread of technology through established firms in the region.

He said, “It makes it easy to now create wealth through employment and at the same time prevent post-harvest wastages. We are talking of a well structured agro-allied industrial cluster, where all agricultural commodities can be processed under a cluster arrangement, “The scheme will also enable would-be entrepreneurs to have production facilities for less than five per cent of the actual cost, while equity investors will be entitled to profit/dividend sharing.

“The first of its kind under the scheme has been built around plantain chips production and is being hosted by Spectra Industries Limited in Lagos, with an installed capacity of five tonnes per month.

“We are therefore deploying this concept to develop the production and marketing of plantain chips under agro-allied industrial concept being promoted by Spectra Industries Limited and NASSI in the South-West zone for the benefits of women and youths in Nigeria.”

Kuteyi added that while Spectra had provided the equipment and factory space, financial contributions from cluster members would be used as working capital to sustain the expanded scope of production and cater for more employees that would be recruited.

“It is just a matter of providing industrial facility access. One of the benefits of this arrangement is that for someone who wants to set up a plantain chips plant, instead of looking for about N10m to set up, all you need is a minimum of N100, 000 and you become a part owner of an already established plantain chips plant,” he stated.

He also said that under the development, there would be innovations as the plantain chips would come in unique variants that could be consumed in ways other than the conventional way, including using ketchup and peanuts.

“It is a far upgrade from what plantain chips are generally known to be in the country. The chips are also of exportable quality in terms of packaging and standards with a shelve life of 12 months. The product is packed in 380gm containers and 70gm sachets,” he explained.

He said the mandate of the Bank of Industry, would also be useful in expanding the concept.

“The bank’s focus on the development of cottage agro processing industries is not different from what we are doing, so we believe that they will be very critical in expanding this type of initiative. Now that we have kicked off this project, the next thing is for us is to invite the relevant government agencies to come and see what we are doing and pick the roles that they want to play,” he added.

[Punch]

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