The CEO of Eternal Gems, Funke Olaniran, sits with The Rock Post to talk about the gemstones’ business in Nigeria and the many investment opportunities her firm hopes to delve into, to bring about a number of changes on the domestic scene.
Q. As an international gemstones’ dealer, you have experience both on the home-front, as well. What would you say are some of the factors which have made all the difference on both fronts?
R. I would say we have a long way to go in Nigeria, in as much as progress is quite slow. I can see investors now, interests building in Nigeria’s gemstones mining. Having said all that, I think the government needs to invest a lot more, because perhaps, we were focused so much on oil, disregarding the gemstone industry. Now that the economics of oil has become more unstable than any time in history, the focus has drifted to gemstones and the fantastic opportunities which abound therein.
The first gemstones’ exhibition I had the opportunity to attend in Nigeria was two years ago – I think it was organised by a gemstone/jewelry store ran by Lotana, I think. From then on, I saw was a vast opportunity.
Those who have been in this industry have been doing it on their own, without any form of input from government. However, I feel that if the government throws some huge investment or attracts foreign investors into the system, more can happen. That said, the system in on the right track and, when a lot of resources and capital goes into it, there would be no reason why things would not be at a globally accepted standard. In addition to that, we have fantastic facetters that can cut and polish stones to international standards. It is amazing that we have got so much we have not tapped into, as far as gemstones in this country are concerned.
Q. Now that you mention facetters , some gemstone dealers always complain that Nigerian facetters are not perfect, so they go abroad and end up with quacks that do not get right, either. Have you ever experienced that?
R. No, I haven’t, but I have heard stories. You will be amazed, though, to know that we have got great facetters here. Maybe, they are going to the wrong people, because some of our facetters were trained abroad came back here to spread the knowledge. We have facetters that can do it for us to international standard and, they are even inviting some of our facetters over there. I know of Mr Zara Ndak, who was invited for an exhibition abroad. He is a fantastic fantastic facetter and it was no surprise that they needed his insights and experience. He was a part of delegates who went to speak at a gemstones and diamond exhibition. So, as much as we are not there yet, we are making progress.
Q. Many say that say one of the missing link in the Nigerian gemstone market is the absence of buying houses. Do you agree?
R. That is absolutely spot-on. I do not think there is a buying house here in Nigeria. By this, I mean a structure where you can find gemologists and gemstones’ dealers under one roof. We do not have that, but we do have a lot of illegal miners mining and trading gemstones. There is no transparency. I think if things can be done somewhat transparently in the sector here, soon someone or a group of people will invest in a buying house.
Q. Talking about transparency now, most of the gemstones that leave the shores of Nigeria are smuggled. In your opinion, is there a way of checking this, they are not bought, what do you think the government can do as someone who is always at the receiving end of this illegal business?
R. I think, in everything form of business, nothing beats infrastructure. I believe the government should put structures in place and, also, there is a huge need for societies like the Gemstones Miners and Marketers Association of Nigeria (GMMAN) and all that. On the part of the GGMAN, they are just starting and need lots of resources from the government, as well. Be that as it is, if we have registered societies that people like us can register with, I think it will help reduce the incidence of smuggling. People need licenses to do these things, but if the processes are too complicated and too tiring, it will discourage many and scare them off the business.
Speaking of investing in sites, I have sites I am interested in, but there are so many hurdles to scale before you can get the license and in the face of that, illegal miners just cut through the whole process and begin exploring these sites. That is the easier and more lawless way. If, however, the government makes license acquisition easier, some of us can go to the extent of bringing in technical partners from all over the world and the illegalities in the sector can be minimized.
Q. You have spoken about faceting, buying houses, illegal mining and licensing. What are the other challenges that stand in the way of the gemstones business In Nigeria?
R. Resources. Really, it takes a lot to keep going in this sector. For example, I would be traveling out of town next week to go source for technical partners who can come down here, train my staff on jewelry-making, gemstone-cutting, get machines from abroad and, then, start making jewelry in Nigeria with gemstones here. Sadly, I don’t get help from the Nigerian government, it’s a ‘no, no’ here.
I have built up my business without help from the government and, though I have come far on my own, it would have been all different if I had that helping hand from the government. As a person, knowing that my business could go further if I buy from Nigeria (fine, we have located gemstones from here, we can use them and all that) all my stones are imported from abroad and it’s a challenge because it limits me in so many ways. So, the fact that I have to leave the shores of Nigeria to look for investors, technical partners and, then, bring them down, is a lot for one business to carry. If the government takes a deeper look at how small-and-medium scale businesses survive and how intent they are on making things work, then sit down to see how best to pitch in, it will be really good.
Q. There was a time Chris Aire was really popular for using Nigerian gemstones to accessorize and create his own line of jewelry. Do you see yourself doing something like that?
R. Absolutely. I am not going to limit myself to Nigeria alone, I will take my brand international. I want that finesse, a combination of what is obtainable abroad and what is available here. Granted, we have a few people who make rings, but they are crudely made an, though some do possess that fineness, they turn out limited editions. This is why I am trying to bring in the technical partners, bring in machines that will actually fill in the gap we have and deploy the local gemstones to satisfy the local and international markets. I see myself as one who has got so much to do, as far as this untapped, local market is concerned, I would say
Q. So, what does Eternal Gems do, mostly and how did it begin?
R. Well, Eternal Gems began five years ago, online, in the United Kingdom.
After a year, we realised the need for a physical office in Nigeria, so we opened in Lagos and then Abuja. To be candid, we’ve been able to meet the demand for good quality rings, engagement rings, wedding rings in Nigeria and we have been able to deliver to clients all over the country. Currently, we are trying to break into other countries in Africa.
We specialise in cutting wedding rings (proposal rings, mostly), all types of metals (gold, silver, titanium, platinum, all natural gemstones).
My gems come from abroad and it holds great appeal for our Nigerian clientele. I am working towards making rings solely from Nigerian gemstones.
Q. The gemstones’ business is a capital-intensive one and beginning must have been quite tough…
R. As relating to capital, I was lucky that my husband saw some potential in the business and invested in it. He, it was who provided the seed capital and when I got my first shipment, I kept them in a store. The good thing about it was that, since I was online, if clients ordered from Nigeria, I would order from my sources and send the stones to Nigeria. That way, it reduced the need for heavy capital at the initial stage.
However, when I realised that the demand for physical stores and physical rings was on the increase, I had to approach family, friends, my husband and some investors and we opened up in Nigeria. Clients were enthralled that they could see these gems and it improved business a whole lot. Before then, most people were overly skeptical about purchasing anything online.
Q. Who are some of your Nigerian contacts?
R. Oh, I’ve got just one, the CEO of 3MGeo Resources, Alhaji Aliyu Mamman. He works directly with facetters who treat the stones based on their type, size and crystal structure or, most times, according to my specifications. When they are done, they pass it onto me and we showcase it or pass it onto the clients.
For my foreign sources, I keep my ears down for gemstones exhibitions all over the world. Wherever there is an exhibition, I go there and, working with my contacts overseas, I purchase them. Presently I am working on a sample for one of my clients and, working with 3MGeo Resources, we are keeping it strictly local.
Q. How much work have you done for local clientele, using local gemstones?
R. Yes. Working with Mamman, we have made one or two bracelets for clients, using gemstones in Nigeria. What I am trying to do now is delving into the fashion aspect. You would have noticed some gemstones’ encrusted shoes and fabrics in the show-glass. A great example is what I am wearing right now; it is encrusted with bits of gemstones from Nigeria. These are some of the things I am working towards.
Q. Why gemstones, when you could have opted for a fashion outfit, beauty products’ line…anything?
R. See, I have got a lot of passion for all things wedding-related. Even before I got married, I dabbled in designing wedding dresses, but, I realised that, perhaps, that wasn’t my passion. I opened a store here in Nigeria, as well. My sister got married and, just before I did, I realised the need for quality jewelry, wedding rings in Nigeria. The rest just followed.
Q. What is your advice for gemstones’ start-up?
R. As an entrepreneur you have to do what works for you, what you love doing. I can work on a design for a particular jewelry with gemstones for 20 hours non-stop and not feel fatigued, because it is what I want and love doing.
There were times when I took stones to Dubai to cut and it cost a lot, but I didn’t let that deter me.
Now, for the start-up, you have to keep pressing, but have the right information and rely on trust-worthy people to show you the way. Another thing is believe in your brand. I am not flamboyant, per se, but I like wearing good pieces and looking nice, whether I wear my clothes or jewelries.
As a start-up, you need to undergo trainings. They are essential; you cannot go without that and, with the passion, even if you don’t have that capital, those resources, you would go far, as long as you have that passion.
There are so many challenges involved in it, but you need to overcome the fear and face them head-on. A lot of people have the interest, they have heard a lot about it and, some even studied it in the university, but they have been unable to conquer that fear. I keep telling people about to start to just face it and go for it. When you begin, you may not know where you are heading to, but starting is essential. Finally, you must know what you are selling, what you are buying and what you are looking out for.
Q. The gemstones’ business in Nigeria is worth billions of dollars. Sadly, it is untapped. As someone who is beginning to find her feet in the business, how far are you willing to go to tap into these untapped resources?
R. The thing is, given the established nature of the international market and that the local market is totally abandoned by the government, I would rather get technical investors from anywhere and fulfill the conditions to bring them here, to start mining the stones here. There are opportunities far and wide and I am willing to go all out to get to where I want, using Nigerian gemstones for all my jewelries and more. The main thing is, I just want to be one of the market leaders making international standard rings or jewelries in Nigeria, using natural, local products.
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