The Raw Materials Research and Development Council in its release on the ‘Raw Material Advisory Brief Series’ (RMRDC- RAMABS) says Nigeria can harness the huge potential of the plastic sub sector in order to save the nation’s scare foreign exchange; BINTA SHAMA reports.
It is no longer news that the present administration is bent on diversifying it’s main source of revenue from oil and gas to a more knowledge base source (non oil). And this forms part of the reason the Raw Materials Research and Development Council (RMRDC), perused the benefits of polyvinyl Chloride (PVC).
Polyvinyl Chloride
Polyvinyl Chloride also known as PVC is said to be the third most widely produced and consumed plastic, after polyethylene and polypropylene. About 57% of the molecular weight of PVC is derived from common salt with the remaining 43% derived from hydrocarbon feed stocks. PVC is made by suspension process (82%), mass polymerization (10%) or emulsion (8%). Plastics are materials or products made from a wide range of polymers of high molecular mass. They have broad applications in time and space due to their durability, ease of production, low cost and relatively light weight. Recent decades have witnessed a tremendous increase in plastic used in a wide range of products. Global production of this commodity increased from 1.5 million tons (Mt) per year in 1950 to 245 Mt in 2008, and it has been projected that global plastic production could triple by 2050.
The report RMRDC- RAMABS(8) study revealed the demand for polyvinyl Chloride in consumer applications such as clothing, footwear and sportswear, furniture will present an immense opportunity in the future due to its low cost and water resistance compared to leather and rubber.
Uses of PVC
Furthermore, the report showed that PVC is widely used in construction applications such as pipes, cables, landfill liners and fencing, floor and wall coverings. Superior insulation properties have led vinyl chloride polymers to be used widely in electrical wires and cables. Moreover, it is used in a range of consumer products such as toys, ceiling tiles and interior cladding. Growing demand in consumer and electrical and electronics applications will drive growth over the next six years. However, there are fractions of plastic which are components of other products. The amount of this plastic constituting product components is significant in the overall volume present in Nigeria. Such products which were aforementioned includes; electrical and electronic equipment like refrigerators, air conditioners, household or laundry washing machines, consumer electronics and IT and telecommunications equipment. In addition, motor vehicles contain a considerable and increasing share of plastic and other polymers. At their end-of-life, these also represent a large waste stream. Plastic from e-waste and light fraction of car shredder residues are a particular challenge in waste management and recycling in Nigeria and in industrial countries as well.
Toys are largely made of plastics and are an important contributor to total household plastics and of concern with respect to human exposures, in particular for vulnerable infants and children. These major consumer products were therefore also assessed for their contribution to the total plastic stock in Nigeria. For instance, the plastic share of refrigerator is 20% with about 12% of polyurethane.
Nigeria spent billions on PVC importation
An analysis on the importation of PVC and PVC products from 2010 to early 2017 using data obtained from the Nigerian Customs Service (NCS) showed Nigeria spent N167.52 billion corresponding to 943 million kg of this value, PVC in primary forms as intermediate raw materials accounts for over 80 per cent of the total imports, amounting to N139.59 billion corresponding to 712 million kg. While on the other hand, finished products like tubes, pipes and hoses, floor and wall covers accounted for 3.5% i.e. N5.9 billion corresponding to 42 million kg and 13.2 per cent i.e. N22.04 billion corresponding to 118 million kg of the total imports respectively within the period in review.
Challenges in the sector
The report further states that Nigeria’s drive towards industrialization has been vitiated by poor industrial and an unfavorable tax regime which makes the cost of manufacturing abnormally high, curtailing demand reducing profitability. Most industrial activity is linked directly to foreign markets in terms of inputs and delivery, with very few industries being rooted in the local economy.
Research shows that PVC is a global product, manufactured by over 100 companies in approximately fifty countries. Three major regions in the world drive PVC demand which are China, the United States and Western Europe accounting for about 63% of the world PVC demand with Nigeria as the giant of Africa left out. Nigeria is a country with higher demand for this product but still lag behind in producing it for its populace and interested countries mentioned above. The demand for this product is said to be on the increase and continues to expand as the standard of living of over 165 million population grows at the rate of 3.0 per cent per annum.
Nigeria’s failure to develop petrochemical plants is largely the reason manufacturing companies are importing about 80 per cent of their raw materials worth over $10 billion (about N2 trillion).
RMRDC’s effort to reduce PVC imports
The RMRDC- RAMABS report states that the Council through its plastic, rubber and foam development programmes has embarked on a plastic raw materials development project with the aim of encouraging regulation and sanitization of the sector by encouraging local production and promoting investment for sustainable economic growth and development through series of specific objectives which includes: reducing the importation of plastic resins to the barest minimum by increasing local sourcing and production, producing wider range of plastic raw materials locally, developing standards for plastic resins to checkmate the utilization of substandard or poor quality raw materials by the industry, promoting latest technologies in plastic recycling, and to facilitate the establishment of more petrochemical plants for the local production of wide range of plastic raw materials amongst many others.
Furtherance to achieving the goal of reducing or totally eradicating the importation of polyvinyl Chloride, the agency in collaboration with the Association of Plastic Manufacturers in Nigeria (APMIN) and Indorama Eleme Petrochemicals saw to the emergence of APMIN as one body with Indorama EPCL, leading to increased patronage of Indorama products by APMIN members, this reducing importation of polypropylene (PP) and polyethylene (PE) into the country. The report also states that a survey was conducted on the demand and supply status of PP and PE in the country. The result revealed a short-fall in the supply of PP and a surplus in the supply of PE. This has led to increased production as well as increased range of products to meet local demand.
In conclusion with the Raw Materials Research and Development Council’s Raw Materials Advisory Brief Series (RMRDC- RAMABS) reports stating the Council’s strategic steps to seek the implementation of the mass production of polyvinyl Chloride (PVC), the country will not only produce for itself but as well export to other countries with its large population and market to grow the economy of Nigeria and Africa at large.