Adhesives, also known as glue, cement, mucilage, or paste is any substance applied to one surface, or both surfaces, of two separate items that binds them together and are then organized into reactive and non-reactive adhesives, which refer to whether the adhesive chemically reacts in order to harden. Alternatively they can be organized by whether the raw stock is of natural, or synthetic origin, or by their starting physical phase.
Starch-based adhesives are made by extracting long-chain carbohydrates from seeds, tubers and the roots of plants such as corn, cassava, rice or wheat. The resulting pastes are mainly utilized for paper and cardboard products. Since they biodegrade quickly and come from renewable sources, they are considered environmentally friendly. This proposal is essentially to highlight the huge demand of adhesive in Nigeria market so no type of adhesives is in focus. A detailed research of the most sought after type of adhesive in Nigeria market will be done to determine this. Meanwhile the immediate purpose of this write-up is to highlight the enormous potential that a manufacturer of adhesives stands to reap from if he cites an adhesive factory in Nigeria.
APPLICATIONS
In the course of time and during their development, adhesives have gained a stable position in an increasing number of production processes. There is hardly any product in our surroundings that does not contain at least one adhesive—be it the label on a beverage bottle, protective coatings on automobiles, or profiles on window frames. Adhesives have gained usage in Nigeria because of upsurge in number of small factories where it is used for packaging.
INCENTIVES
- Pioneer Status (tax holiday) granted for 3 years and renewed for the next two years
- 100 percent repatriation of profit net of taxes
- Capital allowance not restricted. Granted in full -100%
- Investment Promotion and Protection Agreement: The IPPA helps to guarantee the safety of investment of the contracting parties in the event of war, revolution, expropriation or nationalization.
- 60% repayment of interest paid by those who borrow from banks under ACGS for the purpose of cassava production and processing.
The major inputs for large scale manufacturing are; LAND, EQUIPMENT, TRAINING, FINANCE AND MARKET.
LAND
Procuring Land for such large scale manufacturing has to be done by professionals who have eagle eye and knowledge of what is required for the successful take off such industry with minimal hindrance. BUSINESS ADVISORY NETWORK is a guru in this regard and will help you arrange choice land at the best rate, all you have to do is to talk to us.
EQUIPMENT PROCURING
BAN has a relationship with a network of equipment manufacturers and suppliers. BAN has the expertise to advice on the best way to go about the setting up of the factory and the equipment to buy for effectiveness. It has to be a mix of both cost effectiveness and durability.
TRAINING
BAN will help you to train and retrain your staff on how to run a cost effective manufacturing concern.
FINANCE
Finance is key to any successful manufacturing and the government is will to support an investor who has shown capacity and to provide enabling environment for the success of such concern. There is 200 billion manufacturing intervention fund put in place by the central bank of Nigeria. BAN will help an investor who has met the criteria for accessing the fund to access the fund to support his manufacturing.
MARKET
The market for adhesives and glue in Nigeria is huge and an early investor will also be entitled to the pioneer status incentives. This will help crash his cost and boost sales for such investor. It must be noted that the market potential of adhesives in Nigeria is enormous going by the quantum of import of the product in Nigeria. It also important to note that, it is only a paltry 2 – 3 percent of the annual consumption of adhesives by Nigeria that is produced in the country. This leaves a gigantic opportunity for an investor.