Supply of chemicals, An imperative for Industrial Development in Nigeria

Supply of chemicals, An imperative for Industrial Development in Nigeria writes Epoxy Oilserv tech team

Nigeria is Africa’s Largest economy and  is projected to expand 4.9 percent this year, according to the Bloomberg survey  though this is barely at par with the figures given by The National bureau of statistics in the Nigeria’s Economic review of 2014 and projected growth for 2015 to 2017 shows that Real GDP growth for Nigeria for 2014 is 6.23 and projected for 2015, 2016 and 2017 respectively 5.54, 5.78 and 5.8.

The Nigeria chemical industry is a vibrant one and is expected to grow rapidly, with the federal government focus moving away from the dominant oil industry, there is an estimated $120 million (some N18 billion) annual market for agrochemicals alone in Nigeria.

It is evident  that the chemical industry occupies a central position in relation to the other industrial sectors underscored by the fact that it is the producer of the primary raw materials which are feedstocks for the manufacture of a wide range of products. For example, sulphuric acid, an inorganic chemical is used on a wide scale as feedstock by many industries. Indeed, it is hard to find any important branch of the economy in which either sulphuric acid and or products derivable from it are not used. The largest consumption of sulphuric acid is in the manufacture of inorganic fertilizers such as superphosphate, ammonium sulphate, etc. It is also a feedstock for the manufacture of many other acids such as phosphoric, acetic, hydrochloric acid and their salts.The acid is used in large quantities for the purification of petroleum products and for a number of processes in the manufacture of dyes, paints, pharmaceuticals, insecticides, detergent, artificial silk, lead batteries, explosives, this is just a tiny part of the use chemicals are put into.

The chemicals industry is one of the United States’ largest manufacturing industries, serving both a sizable domestic market and an expanding global market. It is also one of the top exporting sectors of U.S. manufacturing. Accounting for 15 percent of global chemical shipments, the United States is a world leader in chemicals production and exports.

The industry’s more than 10,000 firms produce more than 70,000 products. In 2012, the U.S. chemicals industry had sales of $769.4 billion and directly employed more than 784,000 workers, with additional indirect employment by industry suppliers of more than 2.7 million. With investment of $57 billion in research and development in 2012, and strong enforcement of intellectual property rights, one-fifth o f all patents granted in the United States are chemistry-related.

Strong product identification and quality, access to low-cost natural gas, a highly educated workforce, world class research centers, protection for intellectual property, and a robust regulatory system make the United States a competitive home for chemicals firms from across the globe.

Industry experts in Nigeria should implore the federal Government of Nigeria, the legislature and associated agencies to replicate the working template of the United states model and grow the industry which is currently expanding expectedly in proportional to the above growth estimates of Nigeria economy.

Chemical Industry Subsectors

Basic Chemicals: These include organic and inorganic chemicals, plastic resins, dyes and pigments. Plastic resins, in particular, have experienced significant growth as a replacement for traditional materials in the automotive, construction, and packaging end-use markets.

Specialty Chemicals: These include adhesives and sealants, water treatment chemicals, plastic additives, catalysts and coatings. These chemicals are performance-oriented and typically include customer/technical servicing as an aspect of their sales.

Agricultural Chemicals or Agro-chemicals: These play a crucial role in the farm economy and the food processing sector. Thanks to modern agriculture, farmers will doubled the production food supplies in Nigeria if properly managed,  they will also tripled the output of foods like cooking oils and meats, and increased per capita food supplies in the country.

Pharmaceuticals: These include diagnostics, prescription drugs, vaccines, vitamins, and over-the-counter drugs for human and veterinary applications. This subsector also includes biotechnology products.  Strategic investment in companies, facilities, and research and development is especially important for this sub-sector, Nigeria government should encourage entrepreneurial participation in this sub-sector especially in the provision of technical and financial backing for willing investors.