Kayode Tokede Vitapur Nigeria Limited, a subsidiary of Vitafoam Nigeria Plc, is seeking partnership with the Federal Government to expand its operation and take advantage of the African Continental Free Trade Area (AfCFTA) to export mass building materials to earn forex for Nigeria:
Vitapur has made a giant stride in the manufacturing of building materials such as insulation boards, pre-insulated roofing sheets and sandwich panels amongst others that are predominately imported into Nigeria. While the company largely sources its raw materials locally, it’s But operation is hampered by high tariff on the few imported materials.
In a strategic move to encourage patronage of its quality products, the company, has scheduled facilities tour of its new plant in Lagos for the Association of Consulting Architects of Nigeria (ACAN), Association for Consulting Engineering in Nigeria, Organizations for Technology Advancement of Cold Chain in West Africa (OTACCWA) and Nigeria Institute of Quantity Surveyors (NIQS) among others.
Vitapur’s General Manager, Mr Yemi Mofikoya, explained that the company was well positioned to earn foreign exchange for Nigeria through partnership with the federal government to address some of the teething challenges.
“We are willing and open to partner with the Federal government to expand our production output which will enable us export and earn forex for Nigeria, leveraging on the opportunities provided by the African Continental Free Trade Area (AfCFTA)
“We are in discussion with the Federal Ministry of Trade, Industry and Investment to resolve high Custom tariffs on some of our raw materials, especially the pre–painted galvanized induced steel (PPGI) which is subjected to 40% Custom duty, 5% Levy and 7.5% VAT. This raw material (PPGI) is not produced locally. Therefore, charging a total of 52.5% is affecting our competitiveness when compared with importation of the finished products, Sandwich panels, which enjoys 0% duty, 0% Levy and 7.5% VAT.
“We are also in discussion with the Ministry of Agriculture on the need for Coldchain to prevent post-harvest loss. Nigeria presently loses 40%-50% of farm produce such as Fresh fruits and Vegetables due to Lack of Cold chain and poor product handling. Vitapur is strategically positioned to meet up with the Cold-chain needs of the nation, since we possess the largest Sandwich manufacturing plant in West Africa, ”Mofikoya said.
Addressing participants after the tour of the company’s facilities in Lagos, ACAN’s honourary Treasurer, Feyi Ogunneye expressed optimism that Vitapur’s quality products would make modern building materials readily available in Nigeria as scarcity of forex has made importation expensive. She commended the company’s management for the foresight and breakthrough at a period when everyone is yearning for local content.
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