By: ‘The Rock Post’ Team
In this exclusive interview with the Chairman/CEO of Amran Faceting and Incubation Centre (AFIC), Alhaji Lamba Zannah, he shed light on gemstones, their value chain and the humongous opportunity lying therein, waiting to be tapped… Excerpts:
Q. Sir, may we meet you by giving a brief into your business background that qualifies you to delve into this line of business?
R. I am an Investment Banker by training. I am a graduate of Salford College of Technology and University of Lancaster in the United Kingdom. I obtained my bachelor’s degree in Industrial Economics in 1982 and a Master of Business Analysis degree in 1983. In addition, I also hold Harvard Business School Certificate in Launching of New Ventures (obtained in 2016). My Banking Career started in the then NAL Merchant Bank Plc in May, 1985 as an Executive Assistant and I was appointed Managing Director/ Chief Executive Officer of former Inland Bank Nigeria Plc in March, 2003. After serving the Banking Industry for 24 years, I voluntarily retired in 2009.
I set up Gurara Bottling Company, the first beverage company in Nigeria that dedicated 5% of its profit to Charity. The Company sponsored many less privileged children to study at home and overseas. To protect and clean the environment, also to create Jobs for the less privileged people in our community, I setup Yes Plastics, a PET recycling plant that buys plastic wastes from youths who retrieve such from dump pits. Following the same pattern and driven by passion to create jobs and train the less privileged youth in our society, I established Amran Faceting and Incubation Centre in 2018; the Centre being the first of its kind in Nigeria is equipped to train unemployed youth to acquire skills in the art of gemstone faceting so that they can contribute immensely in the development of the Nigerian Gemstone Subsector.
Q. What are the potential indicators that convinced you to consider this line of business?
R. There are several reasons why I am convinced that the Gemstone Subsector has the potential to make very significant impact on our National Economy. Firstly, Nigeria has huge deposits of gemstone judging by the widespread gemstone mining activities in the Country. Some of the places where gemstone mining activities are presently taking place include the Federal Capital Territory (FCT), Oyo, Nassarawa, Taraba, Bauchi, Plateau, Zamfara, Niger, and Kaduna States to name just a few. However, mined gemstones are mainly exported unprocessed making the operations only marginally profitable and with loss of revenue to both the Federal Government and the Government of the States in which the activities take place. Consequently, if appropriate steps are taken to provide both the skills and facilities for processing gemstones locally the fortunes of the subsector can be tremendously improved. Artisanal and Small-Scale Miners (ASM) engaged in gemstone mining shall be able to establish gemstone processing facilities to add value to their mined products. Those of them that are not able to establish processing facilities have the option of selling their products at competitive prices to those that have such facilities. This way all segments of ASM in the gemstone subsector are empowered. While revenue generation by Governments, both Federal and States, from the subsector shall be greatly enhanced. Foreign exchange earnings by the subsector is bound to also improve significantly. Equally importantly, regulation of the subsector by the Federal Government can be much easier effected.
Q. Your firm, AMRAN, commissioned last year by the Hon. Minister of Mines and Steel Development, Hon Abubakar Bawa Bwari, is becoming a household name in the sector. What is your selling point?
R. It is a common knowledge that the gemstone subsector of the Nigerian economy is largely underdeveloped, and some of the critical issues plaguing the value chain of the commodity are, lack of skilled faceters with adequate knowledge in the area of gemstone cutting and polishing, scarcity of standard lapidary processing centers, resulting in very minimal value addition and low revenue collection by Government. Our selling point is Amran Faceting Incubation Center is indigenous pioneer well equipped to provide capacity building on Gemstone Faceting. The center admits students with minimum qualification of Senior Secondary Certificate (SSC) or its equivalent from within and outside Nigeria without any discrimination. We offer basic theoretical and practical knowledge in faceting in order to equip our students with the necessary knowledge and skills to become faceters of high repute. We have invested adequately towards the provision of equipment and teaching materials/aids. Also we have engaged the best master cutters and resource persons as trainers so that trainees can get maximum benefit from the programme.
Q. Gemstones of several varieties are prevalent across the pegmatite belt of Nigeria. How are you positioned to harness this huge market?
R. We graduated the first batch of gemstone cutters that successfully completed the basic faceting programme from the center during the Ground-Breaking Ceremony and Commissioning of our gemstone faceting incubation center in Abuja last year. The second batch has also graduated, and admission for the third batch is currently going on as we speak. Our basic course and the associated practicals are conducted in a minimum of two(2) weeks and trainees are certified upon successful completion of the programme. The center is designed to provide a nurturing environment that will provide its graduates entrepreneurship in gem business. It is equipped with the best up to date faceting machines in the World, the Ultra Tec V5. The center has the capacity to train up to 500 people annually, to be good cutters and gemstone value addition chain agents. It is this array of trained faceters that will unlock the huge untapped resources, add value, draw benefits and provide broad revenue base for Government. Since the center was commissioned, we have been attending seminars and conferences to make people to be aware of our coming into being. We have made other deliberate efforts to market our product.
Q. Worldwide, the gemstone market is like a “cartel” kind of business. How do you intend to make an in road into this seemingly closed world trading space?
R. Nothing in life comes easy. We are, however, determined to take all necessary steps to occupy our rightful position within the cartel. The Gemstones business worldwide is a $23 Billion industry and Nigeria cannot afford to be a mere onlooker within the industry rather than an active participant in it, given its huge natural endowment of gemstone deposits. Smuggling of unprocessed gemstones out of Nigeria and selling them for paltry amount with no value addition is very detrimental to our economy as I have earlier pointed out. First, we must develop the infrastructure for proper gemstone grading, cutting and polishing which is what Amran Mining Company Ltd. is currently doing. Secondly, we need to develop our Jewelry industries to use our gemstones to promote Nigerian brands locally and internationally. We as a Country, endowed with both human and natural resources, know what to do to come out of ‘the woods’ as far as the industry is concerned and what is required of us is to remain well focused, so that we can easily penetrate the Cartel.
Q. The gemstones industry can be decoupled into several units. What area(s) of the value chain do you operate specifically?
R. Our specific area of operation in the value chain is capacity building in faceting which we are fully engaged in right now at our centre in Gwarimpa, Abuja. Our programme includes: (1.) Basic Components and Functions of a Faceting Machine.( 2.) Basic Theory of Gemstone Faceting. (3.) Practical Sessions on the Faceting of Various Gemstones. We see this effort as an effective strategy to minimize the drain of wealth and job creation to other countries like Hong Kong, China, Thailand, Germany, USA etc. Our vision is to create a “stock of master cutters” locally to serve as catalyst in developing the gemstone subsector of the Nigerian economy by freeing the subsector from those problems that have hitherto stunted its growth, so that the interest of all stakeholders can be better served.
Q. Several high value Gems traded the world over, are said to originate from Nigeria, how do you intend to announce a strong brand as a business strategy from Nigeria?
R. Indeed, Nigeria is home and origin to many valuable precious and semi-precious stones like Sapphire, Tourmaline, Aquamarine, Emerald, Garnet, Zircon, Topaz, Amethyst, Ruby, and many others. The global gems and jewelry industry is expected to witness a high demand in the near future owing to the growth in the consumption of branded jewelry. Announcing a strong brand from Nigeria may not come easily, but it is possible, and we alongside other stakeholders in this subsector are working assiduously on it. In pursuance to this and other laudable objectives, Amran Mining company Ltd. has started taking the necessary steps to achieve a 100 percent execution of its strategic and comprehensive mining plan in three (3) implementation phases. The first phase involves establishment of a faceting incubation center for gemstone cutting. This has already been done and the center is already in operation and I would like to use this medium to request all stakeholders especially the government at both Federal and State levels to collaborate with Amran Mining Company Ltd. to develop the gemstone subsector by seizing the opportunity offered by the faceting center to do so. The second phase is to establish gold buying centers and gold refinery to produce Nigerian gold bullion in 500 gms, 1kg and 2kgs sizes, for export. While the third phase is to establish jewelry manufacturing, that shall lead to the emergence of a Nigerian Brand.
Q. How would you advice the government to discourage export of unprocessed gemstones to conserved our scarce natural resources and encourage value addition?
R. The government as a major stakeholder, regulator and policy maker has been making huge efforts, especially in the recent past as evidenced by activities of the Ministry of Mines and Steel Development (MMSD). The Mining Sector Roadmap recently launched by the MMSD recommends that value addition of minerals for local consumption and exports be given priority. The roadmap also encourages State Governments to concentrate on value addition projects such as beneficiation, smelting, and processing as such projects provide opportunity for wealth generation. The Mining Implementation and Strategy Team (MIST) is also working on a strategic plan for capacity building in the sector to help improve productivity. All these are steps taken in the right direction by the Federal Government in order to discourage export of unprocessed minerals including gemstones. Amran Mining Company Ltd. with capability for capacity building, in gemstone Faceting is able and willing to partner with the government to build capacity for gemstone processing, along the line outlined in the Mining Sector Road Map mentioned above. In addition, we would like to urge the Federal Government to do more via legislations and regulations in order to discourage the export of rough gemstones and encourage value addition on shore because of the inherent benefits yet to be fully tapped. Nigerian youths can key into these areas in the gem industry: gem brokering, cutting, faceting with a coordinated government and private partnerships. With basic knowledge, Nigerians can become gem traders and ultimately contribute reasonably to the GDP. Amran is committed to contributing its quota in this all important, prestigious and economically profitable gemstones value addition effort.
Q. From your vast experience, what is the rationale behind the exorbitant value of internationally faceted gems against their local equivalent?
R. Internationally faceted gemstones are certified by GIA or similar professional bodies that certify gemstones. This means that internationally, gem is graded in accordance with the 4 Cs principle of cut, carat, color and clarity. The locally faceted Gems are presently not certified by either GIA or any equivalent body, hence they could not attract the same market value with the internationally certified ones. Secondly the cost of labour off shore is much higher hence the cost of the final product.
Q. Gemstones Valuation for the international market requires a sort of “Certification” Any plans on how to navigate this trap?
R. I am an advocate of doing things properly and professionally. Gemstone Certification by GIA or similar bodies gives credence to the quality and origin of the Gemstone. Amran is working with some interested parties to establish a similar body. Once certification is properly and transparently implemented, I am confident that the market for polished gemstone trading could be easily developed.
Q. Middlemen from known countries are positioned to mop up these materials for their paymasters. How do you plan to break their monumental influence?
R. This is another area of great concern to those of us operating in the Nigerian gemstones mining sub-sector, and Government has a great role to play alongside other stakeholders to address the matter. In order to break the power of these middlemen, however, we the stakeholders must organize ourselves and coordinate via relevant registered societies to set up gemstone buying houses where gemstone producers could obtain fair prices for their products. In addition, relevant stakeholders must invest towards the establishment of Gemstone grading laboratory for certification of Gemstone. Most of the leading gemstone hubs in the world market rely on African Countries, particularly Nigeria, for inputs in the form of rough or unprocessed gemstones to sustain their jewelry industry. This will continue to be the case until and unless we are able to make marketing of gemstones locally attractive. We must therefore embrace steps to prevent gemstone flight in its rough state through middlemen, so that our economy will be able to sustain indigenous jewelry brands and maximize the multiple prospects in the gem trading. Nigerian gemstones are amongst the most precious in the world with the Mambilla Sapphires from Taraba State being the best in the world. A deliberate coordinated effort must be made towards formalization, standardization and policy development, to provide a level playing field for operators and to possibly flush out those that may not be operating in the interest of the subsector.
Q. Tell us about any international affiliates of yours, if any and the relationship between both your companies.
R. We have a capacity building affiliation with ‘Scott The Stonecutter’ Tijeras, New Mexico, United States of America. The Stonecutter’s Scott Sucher is recognized as a museum cutter around the world. He is passionate, knowledgeable and a true master of his craft and incomparable among his peers. He is the Chief Instructor for our program.
Q. You are no doubt aware of African Gems and Jewelry Exhibition and Seminar (AGJES). Do you think it has the capacity to rival similar events in other countries?
R. Yes, we are aware of ‘AGJES’ and Amran is in full partnership with the body. We participated and exhibited at the October 2018 edition; “Mines to Market Improving industry linkages”. Their objectives are clear and in concurrence with ours, which is to convert the abundance of natural gemstone resources into foreign exchange earnings comparable to the petroleum or the entertainment industry. AGJES may not be close to where other international gem exhibitions are, but it’s worthy of note that AGJES has created a platform to galvanize the development of gemstones, precious metals and jewelry value chain in Nigeria. They have triggered the most needed conversations, awareness creation and networking amongst key players (MMSD, RMRDC, NACCIMA, ACCI, MAN, WIM, GMMAN, GJAN, GIA alumni and the public) whose coming together would strengthen individual progresses and translate this sector into the multi-billion dollar economic giant that it is supposed to be!
Q. Lastly, has government recognized the potential in your company?
R. Yes. The Hon Minister of Mines and Steel Development, Abubakar Bawa Bwari, personally commissioned our incubation Centre in Gwarinpa, Abuja and presented certificates to our first set of graduates in July, 2018. Since then we have being receiving very commendable support from the Ministry of Mines and Steel Development, which evidently regard us as partners in progress in the development of mining in general and the gemstones subsector in particular. As a matter of fact, we have recently submitted a draft Memorandum of Understanding (MOU) on capacity building in gemstone faceting to the Ministry for consideration. Furthermore, we have had various meetings with Oyo and Kaduna State Governments on related matter. So far so good we have started getting the attention of Government at both Federal and State levels and we believe that is an indication of recognition of our potential. I am confident and hopeful that very soon we will see the light at the end of the tunnel in developing this Sector.
