Balogun: Manufacturing, Pathway for Economic Growth

The Managing Partner, Advanced Concrete Technologies, Mr. Collins Balogun, whose company is a provider of construction chemical solution, concrete accessories and comprehensive waterproof system, in this interview, speaks on the importance of manufacturin

Can you tell us some of the challenges you have faced in business and how you overcame it?

Well, ours is peculiar because we are one of the pioneers and the pathfinders. So, in creating roads for others, the challenges were enormous. We are still having challenges but we are overcoming them. Some of the major challenges we face, I would say, is the challenge of importation and double taxations. And in our career, the biggest challenge that comes to mind happened in 2016. At that time, we lost more than 70 per cent of our capital as a result of dollar fluctuation.

It was a breaking point because we get goods from our foreign partners and at the point of shipping, we pay 30 per cent and after 90 days we pay 70 per cent. When they invoiced us, the dollar was N170 to $1 and when the pro-forma matured, the dollar became N520/$1. So, it became a serious problem.

We had two options then - either to shut down and move to Canada just as some of our friends did or to remain here. A whole lot of our friends closed their shops and said, ‘Let me take my family to Canada,’ but we decided to stay.

We had to start all over again, but there is an adage that says whatever does not kill you makes you stronger. We had thick skin because of that experience in 2016, and we became more experienced and careful and today we thank God for where we are. From the beginning, we have believed that age is not a determining factor for us. We want to shine the light of Africa to the world; we want to tell people that from Nigeria and from this part of Africa, you can have the most quality affordable products. Not just servicing Nigeria and the ECOWAS corridor as we presently do but servicing the whole world. For us, age is not just it and for those that have this perception I think it is changing now.

What prompted you to go into manufacturing?

Our industry is heavily dominated by foreigners. I can say we are the only local playing in this industry. Others are Germans, Americans and Indians, but manufacturing is the main pathway for economic growth. Every other industry is fantastic, but the first path to economic sustainability is manufacturing. If you do not manufacture or produce, every other secondary industry as I choose to classify them cannot be in existence. The media you are talking about, for instance, if a camera is not manufactured, there would not be media. And when you look at it for the so-called world powers, what are they using to rule the world? It is manufacturing. They have got the technology; they have got the manufacturers. Look at China today. Why are they a world power? It is not just because of the media or the technology, it is because they have the manufacturing capacity. They are not just manufacturing goods; they are manufacturing machinery that would be used to manufacture goods.

The Economic and Recovery Growth Plan (ERGP) of President Buhari talks about agriculture. Agriculture is fantastic, especially when you look at the hierarchy of human needs. But after that, it should be manufacturing. When manufacturing is encouraged, the economy grows faster.

You said earlier that you have a partner, can you speak about your working relationship with your partner?

My partner, Anthony Ajulo and I have been childhood friends. You see, our parents are family friends and fortunately, we have been together since childhood. We are business partners not just because we are childhood friends, but because we also have an aligned personality. In my area of weakness, he is very strong and in his area of weakness, I am very strong. We complement each other and our visions and philosophy for life align as well.

What can we expect from your firm going forward?

From the beginning, we have believed that age is not a determining factor for us. We want to shine the light of Africa to the world; we want to tell people that from Nigeria and from this part of Africa, you can have the most quality affordable products. Not just servicing Nigeria and the ECOWAS corridor as we presently do, but servicing the whole world. For us, age is not just it and for those that have this perception I think it is changing now.