Cottage Industrialization for Exportation & Empowerment Programme CEEP
INTRODUCTION:-
Times are fast changing and what used to be obtainable in some decades ago will prove abortive when subjected to present realities. Gone are the days when people are proud of being gainfully employed. The best way to lead a productive life these days is to be an employer of labour. I know you might be quick to point out that national policies of the country don’t support self-establishment. The truth remains that Nigeria is still one of the few countries to easily make headway. Argue less and read this article thoroughly to discover many opportunities you’ve ignorantly trampled on. Nano, Micro & Small Enterprise Businesses and Cottage Industries have existed in Nigeria since the country’s independence in 1960.Some even opined that they have been in existence before the said date. However, due to the fact that major programs and events such as seminars, researches, studies and workshops, each of which appraise the excellence, importance and need to facilitate the establishment and sustainability of Small Scale Manufacturers and Farming can be substantially dated back to independence, many a scholar has always made reference to the date. In many developed nations of the world, SMEs form an important part of the business landscape, but they are faced with significant challenges and obstacles that compromise their efficiency and productivity in Nigeria. The Corporate Affairs Commission estimates that 90 percent of all Nigerian businesses in 2001 employed less than fifty people. Similarly, a study that was conducted by the International Finance Corporation about the same period estimated that 96 percent of all businesses in Nigeria are NMEs, compared to 53 percent of SMEs in the USA and 65 percent SMEs in the EU. The SMEs in these two parts of the world account for 50 percent of their respective countries’ GDP. This is a clear indication that giving necessary support to SMEs could become an unarguable means of boosting the nation’s economy. Furthermore, it also shows that the sector is a goldmine yet untapped by the citizenry. Significantly, the role of the small and medium scale enterprises in Nigeria shows that they have been identified as a veritable source through which several problems bedeviling the nation could be approached and solved e.g. job creation, eradication of Substandard products, poverty alleviation and industrialization growth. SMEs in Nigeria has gradually and steadily become an important topic in the recent years, apart from the numerous goods produced by SMEs; they will provide a veritable large scale employment because they are labor intensive, they also provide training grounds for entrepreneurs, mainly because they rely more on the use of home-made materials. JUSTIFICATION & HISTORY OF SMEs
Historical facts show that prior to the late 19th century, cottage industries, mostly small and medium scale businesses controlled the economy of Europe. The industrial revolution changed the status quo and introduced mass production. The twin oil shocks during the 1970s undermined the mass production model, which triggered an unexpected reappraisal of the role and importance of small and medium-sized enterprises in the global economy. Findings by economists over the years show that small firms and entrepreneurships play a much more important role in economic growth and development of all nations. Motives for establishing a small and medium enterprise within the small scale industrial sector which are based on the following factors:
It is assumed by the Nigerian industrial sector that the large scale industry has not been an engine of growth, provider of employment, tax policies, finance, general trade and direct subsidy. So based on these prepositions that SMEs are more efficient, responsible and viable. MENTIONED BELOW ARE THE FEW QUALITIES AND MOTIVES FOR ESTABLISHING AN SMES.
1. SMEs mobilize funds that which would have been idle if not put to use;
2. SMEs have been recognized as the bedrock for indigenous entrepreneurship;
3. SMEs promote indigenous technological know-how;
4. They are labor-intensive and employ more labor per unit of capital than large enterprises.
5. They adapt easily to customers’ needs and requirements;
6. They cater for the need of the poor;
7. They are capable of competition but behind protective barriers, which though make the products have less foreign exchange requirements;
8. They are more flexible in their dealings and operations;
9. They improve the efficiency of scarce resources;
10. SMEs facilitate long term growth and economic development;
11. SMEs have a reasonable potential to acquire technological capabilities and to develop new products and processes, and can also contribute to national technological development and competitiveness.
12. They can often adapt to changing demand patterns, trade patterns and macro-economic conditions. This increases industrial flexibility.
13. SMEs provide a setting which assets and skills can be accumulated, it can lead to a better economic benefit for those who acquire the skills, and for the house- hold they seek to support. NANO, MICRO AND SMALL MEDIUM ENTERPRISE (NMSME)
IMPORTANCE OF NMSME
Giving insight into the NMSME phenomenon, a paper delivered at an MSMEs forum by Rev. Oluwasegun Akinbonja Mulemora titled:-"The impact of Cottage Industries & Source of Revenue in Economic Development" makes it known that operations are propelled by the dynamic theory, which makes them efficient and prone to constant change. He gave a comparative statistic using nine developed countries. The cottage industry is an abandoned NMSME in Nigeria, yet it has the potentials to liberate thousands of people if the right actions are taken. It is a sector that is worth billions of naira annually. Instead of forcing yourself into over-crowded sectors of the economy, why don’t you fill this void and become an employer of labour? What many Nigerians do is that they strive to be in perpetual servitude when they can easily reign in their areas of domain. Knowledge liberates and this article has shed light in one of the less-talked about industries, yet very promising and gainful. NMSME AS A SCHEME AND COMMERCIAL BANKS INVOLVEMENTS
The Banker's Committee is a body constituted by representatives of banks in Nigeria. The scheme was approved at their 6th meeting on December 21, 1999. According to them, this was a response to President Obasanjo's concern and policy measures for the promotion of small and medium industries (SMI) as a vehicle for rapid industrialization, sustainable Economic Development, Poverty Alleviation and Employment Generation. The scheme requires all banks in Nigeria to set aside 10% of their profit before tax (PBT) for equity investment in small and medium industries. CHALLENGES OF NMSMES IN NIGERIA
Nigerian needs to know the different in NMEs Nano Micro Enterprise and SMEs Small Medium Enterprise before we can achieve the best in SMEs, statistics show that we have 95% NMEs that need to be transform into SMEs in Nigeria. Chart
No Size Employments Asset without Building or land
1 Nano Less and 5 staff Less than 1-million
2 Micro Less and 10 staff Less than 5-million
3 Small Less and 20 staff Less than 10-million
4 Medium Less and 50 staff Less than 20-million
5 Large Less and 99 staff Less than 50-million
6 Multinational/Cooperate Less and 200 staff 500-million
This is the structure report from the research and development unit of ACIN and the Projection with our Industrial revolution Project for the Transformation before 2027. The scheme commenced on June 19th 2015. The scheme aims, among other things, to assist the establishment of new, viable Cottage Industrialists for exportation & Empowerment Programme CEEP projects, that will stimulate economic growth, development of local technology, promote indigenous entrepreneurship and generate employment was introduced by Association of Cottage Industrialists of Nigeria in 2023. ASS0CIATION OF COTTAGE INDUSTRALIST OF NIGERIA (ACIN)
OVERVIEW OF ACIN
ACIN is acronym of Association of Cottage Industrialists of Nigeria, has achieved a lot. We are now in 38 States with 2000 members each, and our associate is a member of the working committee of the African Continental Free Trade of the African Union, and we are now in 18 African countries some of the country are Uk, Ghana, America, Siralon, Kenya, Gambia, Senegal, Liberia etc. Association of Cottage Industrialists of Nigeria has been reorganized by federal government as group of Nano, Micro & Small Enterprise organization and it commence operation on the 2nd of November, 2000 in Oyo State. Today we are in 38 States and we are working on that CEEP Project to Training & empowering 800 Participants (Exporters) in each local government Nationwide: we will support them with starting capital Loan without Interest but we charge them Business Profit Margin of 1.5% monthly for the total of 980,000 Nigerians before year 2027. We have Limited Liability Registered Cooperative Society (Cottage Industrialists Multipurpose Cooperative Society Ltd:- Cottage-MFI and its affiliation to Association of Non-Banking Microfinance Institution of Nigeria and National Collateral Registry under Central Bank of Nigeria, as a Micro Finance Institute, We Operate on Savings, Thrifts & Credit for all our members & the general public nationwide. We have support from Standard Organization of Nigeria (SON) to give certification Approver to our member’s product with just N30,000, also SON/MANCAP certification. ACIN was fully registered by Trustee under the perpetual Succession Act Cap 98 of the Allied Matters in Corporate Affairs Commissions in Nigeria for the Development of Cottage Industrialists (reg. CAC/IT/79862).with Offices the National Headquarters in Abuja, Regional offices in Plateau, Adamawa, Kano, Ondo, Abia, State and Cross-Rivers State and State Correspondences nationwide. Our Members are franchising our Products with ACIN Trade Mark &Logo for exportation and 12 African countries has keyed into it. The Association has started their Specimen Training Programme for 800 participants. This National Programme will be from State to State in partnership with Seakat Global Technology Resources and Cottage Industrialists Multipurpose Cooperative Society Ltd for them to have access to starting capital from Cottage-MFI. The Association has established the microfinance institute named Cottage Industrialists Microfinance Institute (Cottage Industrialists Multipurpose Cooperative Society Ltd) they have been operating since two years with Head office in Kano State with Corporate office in Abuja. With this project and our Involvements in spreading across the African countries and our Present in the Africa Standard organization Policy on accreditation of product and our impute about Nano, Micro Small Enterprise we in-collaboration with National Action Committee on African Continental Free Trade Area in Nigeria we the Association has established the Association of Cottage Industrialists of Africa ACIA to unit all the Association of Cottage Industrialists across the Africa under one umbrella body to regulate Association and Develop policy for the growth of Nano Micro & Small Enterprise. The Association have been taking to the next level based on the exportation of our locally Made Products. This will help the shipments of the products across the –Americans-African Chambers of Commerce & Industries Trade to join the Continental Free Trade Zone of the African Standard Organization. PHILOSOPHY OF ACIN
To teach, especially the women & youths how to fish instead of giving fish, this has led us to the development of a network of Nano, Micro & Small Enterprise.
ACIN network has become women & Youth oriented, functionally, effective, economically independent as a major player in the Nano, Micro& Small Enterprise with a specific focus on the transformation from an informal Sector to a formal Productive Sector. AIMS AND OBJECTIVESOF ACIN
To create a socio-industrial economic system that will promote locally made products with the aim of improving the economy.
To modernize cottage industries and transform the rural lives
To serve as innovator and pace setter in the production practices.
To serve as a training ground for the Youths in economic development.
To improve the competitive position of small-scale producers.
To build an Industrial Market Trade Centre in each (State)Area, organizer of trade fair as a window for marketing products and as outlet for members.
To assist in exportation of member’s products in between the African countries through free trade Programme.
To cooperate with Federal, State and Local Government in all areas in generating revenue to the Government and the Association.
To look into the challenges that is associated with the Members industries and so as to proffer solutions.
To enable and enlarge the members work towards the progress of the association. VISION OF ACIN
Empowering household manufacturers/ farmers and encourage the women & youths to improve on their locally made products for international Standard. MISSION OF ACIN
To improve and promotes locally made products for home consumption and exportation.
To improve the capabilities of women & Youths for the purpose of achieving sustainable development and profitable production without threat to lives and property with efficiency. COTTAGE INDUSTRIALIZATION FOR EXPORTATION & EMPOWERMENT PROJECT. What many Nigerians do is that they strive to be in perpetual servitude when they can easily reign in their areas of domain with local manufacturing. Knowledge liberates and this article has shed light on one of the less-talked about Nano Micro Enterprise, yet very promising and gainful. The scheme will commence on September 2022 by organizing the Specimen Project for 800 to 1200 people in each state from FCT, Balyelsa State, Akwa-Ibom State, Cross River State, Delta State, Kogi State, Nassarawa State and nationwide. The scheme aims, among other things to assist the establishment of new viable Cottage Industrialization for Exportation & Empowerment Programme CEEP, that will stimulate economic growth, development of local technology, promote indigenous entrepreneurship and generate employment that will be introduced by Association of Cottage Industrialists of Nigeria in 2023 to 2027. We seize this opportunity to introduce our project of Practical Skills Acquisition & Exportation Technology Training. with soft Loan without Interest rate but we charge them management Fess of 10% to 15%, for (18) Eighteen Months for all 980,000 Nano Micro Enterprise in Manufacturer & Farmers starting from 2023 and end before year 2027. It is captioned INDUSTRIAL REVOLUTION PROJECT. ACIN will be introducing new improved technology to the general public on the production of varieties of commodities i.e.: Production of Brown Sugar, Odorless Pig Farming, Cereal for Feeding Fishes, Liquid soap production, Snail farming and in other various fields. VOCATIONAL TRAINING FOCUS
Soaps & Cosmetics for Exportation, House paints, Juice and Beverages, (Theory & Practical Demonstration), Goat for exportation Fishery for Exportation, Poultry for Exportation, Piggery for Exportation,
FIRST PHASE
As the first specimen Training programme will be organized across the 36 State and FCT while One thousand five Hundred (1500) persons will participate & benefit in the 12to 15 Months Starting Capital Loan from Cottage Industrialists Microfinance Institute-Cottage- MFI. SECOND PHASE
This is Main Project where ACIN will organize the Training and empower participants with start–up capital across the local government, for One Thousand to Eight Hundred (1000 to 800) people will Participate & benefit with your support batch by batch within 18 months of programme. PROGRAMME DYNAMICS
Participate in the Practical Skills Acquisition & Exportation Technology Training.
Become a Franchise member of ACIN
Join the Cottage Industrialists Multipurpose Cooperative Society LTD.
Members of ACIN would have access to a loan facility from #500,000 - #1,000,000 respectively depending on what they produce, without Interest rate, but we charge Management Fess of 10% to 15% only.
ACIN will give out the Loan at 70% of their Raw Material and Machine/Accessories.
Repayment would be between 12- 18 months respectively through the association cooperative Society (Cottage Industrialists Multipurpose Cooperative Society-Cottage-MFI) by each member.
Chemical and Machine /Accessories will be used as Collateral and Registered by our association being a Member of the National Collateral Registry of Central Bank of Nigeria.
ACIN will be using the cluster method of operation in the disbursement with two State civil servants of level Six officer and one member to guarantee the loan from the association. TRAINING MANUAL FEE:- #10,000Theory and Practical demonstrations and certificate for the (6) Six days in the Practical Skills Acquisition & Exportation Technology Training. AWARD OF CERTIFICATE:- Diploma Certificate is Awarded through the Training Consultant Seakat Global Technology Resources and that will qualify the Participant to become a Franchise Member of the Association of Cottage Industrialists of Nigeria (ACIN) to benefit from the Association. TYPES OF MEMBERSHIP
1. Non Refundable Fees is charged as membership and annual fees to the member.
2. Membership Booklet and Forms are available at the National Office only for members after payment and accreditation by SISL.
3. Membership is opened to the general Public of Nano, Micro& Small Enterprise in Farming &Manufacture in rural or remote areas that leverage on their proximity to locally made products as a cottage industry.
• Ordinary N15,000/ #10,000 Individual Membership
• Basic: - N25,000/ #15,000 Individual Membership
• Bronze: - N65,000/ #25,000Individual/Corporate/Business name Membership.
• Sliver: - N150,000 Individual/ Coop Society/ Corporate Membership
• Gold: - N250,000 Individual/Coop Society/ Corporate Membership
• Diamond-: N500,000 Individual/Coop Society/Corporate Membership
• Platinum-: N800,000 This is for Nationwide NGOs, Institution,
HOW TO BECOME A FRANCHISE MEMBER OF ACIN
Anybody that has any products, Farming are free to join the Association through our Cottage Industrialists Microfinance Institute-Cottage-MFI, Super agents and submit to the State Coordinator for processing nationwide or through Union Bank Plc in our ACIN-Union-collect. Participant trained by Seakat Global Technology Resource will be treated as automatic membership (Automatic Member Are Ordinary membership #10,000 instead of N15,000, Basic Membership Fee N15,000 instead of N25,000 and Bronze Membership Fee N25,000 instead of N65,000). Applicant must be satisfied by Seakat Global Technology Resources before any payment into the Association Bank account. Application form is available at cottage-MFI Office/Agent or Staff, direct payment to cottage-MFI in-favor of the Association nationwide we don’t accept cash from anybody, the teller is very important for proper accountability. GENERAL BENEFITS AS A FRANCHISE MEMBER OF ACIN
They will have access to franchise and the Association Product, and make use of the Association NAFDAC Number, Trade Mark, SON, Laboratory and the (State)Area Office.
Each will have access to soft Loan from Cottage Industries Microfinance Institute with 105 to 15% Management Fees Only of their Industry or Farm with at list 70% of the Loan invested and the 30% for miserliness without collateral for the equipment forms the collateral
They will have opportunity of Marketing their products in the association Multilevel marketing Programme (IFA-Intercontinental Finance Alternative) Programme of this Association.
They will be organizing Trade Show in partnership with Nigerian Exporting Promotion Council, Shippers Association, Chambers of Commerce, in each state yearly, ACIN Franchise Show.
They will have their Factory in the ACIN FRANCHISE TRADE CENTRE that will be built in each State.
They will have Opportunity of attending all our Conference and Seminar be it National and International.
They will have Opportunity of Advertising in our Quarterly Magazine with low rate Seaquick Magazine, Buy Nigerian Made of ACIN DAY “IN’ DAY OUT Shop E-commerce Platform. www:didoshop.com
They will have Opportunity of getting the Chemical, Machine and Accessories at Cheaper rate in each State.
Each will have advantage of becoming a Member of the Shipper’s Association in their State and they will be able to Export their Products to other Africa countries through the Association.
They will have the opportunity to participate in the African Continental Free trade across. CATEGORIES OF BENEFITS AS A FRANCHISE MEMBER OF ACIN
ORDINARY MEMBER
Will have access to maximum of N100,000 to #200,000 loan three months’ membership and 20% equity contribution with turnover of 50% in three to six months, he/she is eligible to vote and can’t be voted for also cannot become any Executive member or attend our conferences but can franchise our products and involve in the trade fair, Exporting and marketing e.t.c
BASIC MEMBER
Will have access to maximum of N200,000 to #500,000 loan three months’ membership and 20% equity contribution with turnover of 50% in three to six months, he/she is eligible to vote and voted for also can become an Executive member in District to State only or attend our conferences but can franchise our products and involve in the trade fair, Exporting and marketing e.t.c
BRONZE MEMBERSHIP
Have access to maximum of #500,000 to #1,000,000 loan, threemonths’ membership and 20% equity contribution with turnover of 50% in three to six months, he/she is eligible to vote and be voted for and can be appointed as State Executive Council to Region Executive Council& National Executive Council Members to oversee the activities of ACIN, franchise our Products except in absent we appoint them as National Executive Members
SLIVER MEMBERSHIP
Have access to maximum of #1,000,000 to #2,000,000 loan, sixmonths’ membership and 20% equity contribution with turnover of 50% in Six to Nine months, he/she eligible to vote and be voted for and can be appointed as National Executive Council, Regional Council & The Governing council to direct the activities of ACIN, franchise our Products. GOLD MEMBERSHIP
Have access to maximum of #2,000,000 to #3.000,000 loan, nine months’ membership and 20% equity contribution with turnover of 50% in three to six months, he/she eligible to vote and be voted for and can be appointed as National Executive Council, Regional Council or Governing Council to direct the activities of ACIN, franchise our Products. DIAMOND MEMBERSHIP
Have access to maximum of #3,000,000 to 4,000,000 loan, nine months’ membership and 20% equity contribution with turnover of 50% in three to six months, he/she eligible to vote and be voted for and can be appointed as Board of Trustee, Governing Council or National Executive or to direct the activities of ACIN, franchise our Products. PLATINUM MEMBERSHIP
Have access to maximum of #4,000,000 to #5,000,000 loan, twelvemonths’ membership and 20% equity contribution with turnover of 50% in three to six months, he/she eligible to vote and be voted for and can be appointed as Board of Trustee and Fellow or Advisory Council to direct the activities of ACIN, franchise our products. PROJECTION FOR FUND RASING IN THE INDUSTRIAL REVOLUTION PROJECT
Organizing Industrial & Agro Allied Technology Training Program for 980,000 at ( #10,000:00) Ten Thousand Naira per Each Participants equals #9,800,000,000. And 30% for the Project Running Cost= #6,860,000,000
Each to become a member of the Association through our Union-collect Porter at N15,000 (Fifteen Thousand Naira) equals #14,700,000,000
With the support and recommendation of the Federal Ministry of Industries Trade & Investment as a revolving Loan.
Each to become a member of our cooperative Society Cottage-MFI with #2,000 and they will Invest into the cooperation society with #4,000 total is #6,000 multiply by 980,000 = #5,880,000,000.
Each Cooperative member must save 20% of their Loan with us before applying for the loan which is #100,000 each for the loan of #500,000 total with 980000 = #100,000 multiply by 980,000 = #98,000,000,000.
