Presco plc, a major Nigerian industrial sector operator, has commended the Federal Government’s management of the real sector in the last few years.
Speaking after the commissioning of the company’s state-of-the-art-Fractionation plant in its factory off Benin-Sapele Road, Edo State, Pierre Vandebeeck, chairman of Presco, commended what he described as an unprecedented financial support, which the firm and those who may access the funding initiative enjoyed from the Goodluck Jonathan-led government.
According to Vandebeeck, “I must admit that, for the time being, this government is the first one that I know that has done something significant for agriculture in concrete terms. Under the Agric Credit Scheme, we are getting loans on a single-digit interest rate – about 8, 9 percent -, and a grace period of two to three years, and a repayment period of seven years. This, to me, is adequate financing for a going concern like ours. This is a fantastic facility, and we were able to finance our energy programme. This is the first time we are benefitting so much from any government.”
The Presco chairman however asked for more, as he also decried the present administration’s tax regime, which he stressed remained a major disincentive to investors.
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According to him: “ I feel that government could do more in the area of taxation. Taxation rules and regulations are due for overhauling and should be designed for long-term investors. That is what has to be done.
“We have countries in West Africa where we operate, where corporate tax is zero. I will give you an example: Ghana. In Ghana, corporate tax is zero. And there is also import duty exemption on investment equipment. Cote d’voire is the same. In Gabon, it is more or less the same. In this area, Nigerian government still have a green field to develop. If the country wants 50 or more Prescos, they have to work on this.”
Earlier at the commissioning, he stressed that the new fractionation plant further demonstrated the company’s commitment to high quality products for the benefit of its consumers. “This new plant is a guarantee of better oil for consumers,” he said, commending the company’s technical team for their skills in ensuring that the equipment was assembled in-house, adding that shareholders have cause again to smile as the new investment would result in “more money” for the company. “Yes, we bought the equipment overseas; but the engineering was in-house. We designed and assembled it. Thank God for our technical team.
The company’s managing director, Uday Pilani, buttressed the chairman’s assertion that the new plant would enhance customer loyalty to the company because of the top quality oil it would be churning out, adding that it would “improve our bottomline.”.
The company’s head of administration, Tony Uwajeh, also stated: “Essentially, this new plant would result in higher productivity, better quality productys for the market and more jobs in the skills area. And it would also impact on our communities, even as it would ensure higher dividends to shareholders.”
A member of the company’s technical team – simply called Mr. Thony, who conducted guests round the new plant, disclosed that it had the capacity to process 120 tons of oil per day.
Later in a media chat, Pilani was delighted at what he described as the company’s consistent growth, citing two examples: “Before, when our plantation was small, we were producing 60 tons of oil daily. Presently, we produce about 150 tons daily.
“Our electricity generation initiative through biogas is a huge success. Indeed, it is the most successful energy plant in Africa today. It will reduce our cost of production considerably.”
OSA VICTOR OBAYAGBONA
