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The dwindling fortunes of hair brand, X-Pression; how Nigeria is singlehandedly killing it 

For more than 15 years, X-Pression enjoyed huge demand in Europe and America. X-Pression’s growth was driven by its market positioning.

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Nigerian hair maker, X-Pression sacks workers, blames economy woes under Pres. Buhari

For more than 15 years, X-Pression enjoyed huge demand in Europe and America. X-Pression’s growth was driven by its market positioning, suited to all classes regardless of pocket size. But this one-time ‘goldmine’ is now struggling to stand on its feet.

Manufactured by Solpia Nigeria Limited and sister-company, Linda Manufacturing Company Limited, X-Pression is the most popular hair extension brand in Nigeria with attachment and weave-on types. It is the revenue driver for Solpia and Linda despite the array of other products produced by them.

X-Pression was a source of pride to Nigeria and Africa at large, as though rooted in Africa, its branches spread across Europe and America, as demand surged. Despite being an African company, its revenue is driven by demand in Europe and America.

[READ MORE: FCMB and SystemSpecs sign MoU, launch a payroll solution for SMEs]

Nigerian hair maker, X-Pression sacks workers, blames economy woes under Pres. Buhari 

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Nigeria is the problem of X-Pression

The beginning of a decline-: The companies began to hit financial difficulties about two years ago when export to its major markets, Europe and America, began to drop due to a fall in demand. Buyers of X-Pression started seeking alternative hair products because Solpia couldn’t meet demand on time.

This failure was mainly because of a failed system in Nigeria’s port. The raw materials for manufacturing X-Pression are sourced from Japan and Malaysia. Purchasing these raw materials was not a problem, but getting them across Nigeria’s port was like passing a camel through the eye of a needle.

While the European and American buyers expect to receive the X-Pression products within one month after demand, the raw materials take six months to leave the port. Nairametrics had previously reported how extortion by NPA officials and task force – comprised of Navy officials, Custom, Civil Defence and Army– stationed at Apapa port road, is behind the gridlock and delay of loading goods at the port.

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“What is affecting us right now is mainly the port congestion and the unfriendly atmosphere of the economy in Nigeria now.

“And most times, our raw materials are stuck at the port, sometimes for six months, they will not come out. And you can’t produce if you do not have raw materials to produce.” Azubuike Onyekwelu, X-Pression’s company secretary, told Nairametrics in an interview.

That was how X-Pression lost its revenue driver. The port delay caused export to fall drastically within a short period. That was the beginning of the financial problems of Solpia and Linda. X-Pression’s biggest markets have resorted to alternatives due to untimely supply.

“It dropped by 80% to 90%. Because most times, when people in America or Italy place order for goods, they expect you to supply within a month, but due to the fact that we don’t have raw materials to produce items required by them, they have to seek out alternative,” Onyekwelu disclosed.

African market doesn’t offer much help

Presently, Nigeria is the goliath standing between X-Pression and its revenue driver. Asides the port which has been the bane of most manufacturers in Nigeria, the closure of land borders has also blocked Solpia’s alternative revenue source.

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While X-Pression is only exported to Europe and America, buyers from other African countries come to Nigeria to purchase its products from the companies’ distributors and export to their countries. Although Onyekwelu said the revenue generated from the Nigerian and African market is nothing compared to the western markets, it still provides a soft landing for them.

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According to him, buyers from Cotonou, Togo, Ivory Coast, Ghana, Burkina Faso and Mali come to export X-Pression products to their countries, but since the border closure, it has been difficult for such business transactions to occur.

This means that X-Pression which used to enjoy patronage from Western and other African markets before now has only the Nigerian market as a revenue source. Such drastic decline in clientele list is expected to have a negative impact on a company. And that has begun to take effect, with the downsizing of its workers.

Knockoffs taking over Nigerian market

40% of X-Pression products in the Nigerian market are fake. This is another way Solpia (producer of X-Pression attachments) and Linda (producer of X-Pression weavon) are losing return on investment. The only market remaining to salvage a future for the companies has been taken over by the Chinese.

Most X-Pression products are shipped out of Nigeria to various markets offshore because the products are manufactured within Nigeria, however, some Chinese have found a way to import fake X-Pression products into Nigeria.

According to Onyekwelu, Onitsha, Aba, Port Harcourt, Benin, Kaduna and Lagos have been saturated with fake X-Pression, but unsuspecting customers buy the fake X-Pression products nevertheless because they can’t differentiate the original from the fake.

Also according to Onyekwelu, some Chinese nationals and Nigerians now leech off the brand’s revenue potential by sourcing for cheaper fibre.

“People are now leveraging on scarcity of raw materials to now source for cheaper fibre – maybe made in Nigeria fibre – then get our labels, print on the nylon and start selling as the real X-Pression in the market.”

The original X-Pression label has unique features (a Hologram and also a hole through which the texture can be felt) which the fake products don’t have.

Electricity and CBN problem

As if the aforementioned challenges are not enough, the makers of X-Pression spend about N4 million weekly on diesel generator because the factory has to be powered for 24 hours.

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He also stated that the company is unfairly treated by the Central Bank of Nigeria (CBN) as regards foreign exchange. According to Onyekwelu, they often get far less than the FX they request, “Another problem we’ve been having is the Central Bank in the foreign exchange.

“Most times, if we are applying for foreign exchange, we apply for maybe, $1 million, we will be given maybe $1000. It’s not even encouraging. We have to source for the balance outside.”

Ripple effects of X-Pression’s dwindling fortune

Impact of X-Pression’s challenges on staff: With the companies’ revenue source being hit, it’s only a matter of time before Solpia and Linda are brought to their knees, and the clock is ticking already, as the company has begun to downsize in large numbers.

The companies used to boast of about 13,000 workers some years ago, but now, it only accounts for about 7,000 employees. The growth of Solpia and Linda is dependent on the growth of X-Pression despite having other brands in the market.

Aside from these companies being vital contributors to the employment numbers in the country, they are employers of women, who make up almost all the workforce in Solpia. But sadly, thousands of them will have to bid their colleagues goodbye by the end og October; two days away from now.

Due to its financial difficulty and the state of Nigeria’s economy, Solpia terminated the contract of Amalya Consults Limited. The recruiting agency had employed 1126 workers to work for Solpia and Linda, but these employees will be aced in the downsizing process.

Although Onyekwelu confirmed to Nairametrics that some of the workers sacked will be recalled after the company find its footing, he isn’t sure if the recall will happen this year or next year.

Nairametrics learnt that the company had tried to hold off the downsizing of its workforce for close to two years, sending workers of a department on technical leave every now and then – depending on which raw material is delayed at the port – rather than sack its workers. But it can no longer maintain the financial strain.

Linda Manufacturing is winding up: Although the sister company of Solpia is still in business, Linda is gradually winding down, as workers are resigning and being sacked. The company which is located in Mushin, Lagos State, now has an operating arm in Solpia’s factory which is located along Iju Road, Agege.

Amalya Consults shutdown: The termination of contracts also affected Amalya Consults as the outsourcing agency shut down its operations and relieved its workers of their duties. During a visit to the company at Fagba, Ifako-Ijaiye, Lagos, Nairametrics was informed by sellers around the company that business will not commence until later next year.

Efforts to reach the company by phone proved abortive, as its contact wasn’t reachable.

[READ ALSO: Why the Nigerian Steel Industry is Crippled by Smuggling]

Nigerian hair maker, X-Pression sacks workers, blames economy woes under Pres. Buhari 

Last resort to save X-Pression

Collaboration with relevant agencies: According to Onyekwelu, there are plans to collaborate with Customs and Immigration to put an end to importation of fake X-Pression products into Nigeria. Manufacturers Association of Nigeria (MAN) and the Nigerian police have been assisting in the fight against the fakers.

Nairametrics was informed that a Federal High Court order had also been granted against fakers, and one company involved in production of fake X-Pression products has been raided in Ikotun. However, it was learnt that the Standard Organisation of Nigeria (SON) hasn’t been of help much as they require logistics to be taken care of by the complainant.

X-Pression’s future in FG’s hand: Onyekwelu said government intervention is urgently needed to keep Solpia and Linda on their feet and prevent the manufacturers of X-Pression from shutting down. He said the border closure should be reconsidered because other manufacturers who are not rice producers are being affected.

Onyekwelu isn’t far from the truth, as Nairametrics had previously reported that other businesses are being affected due to the border closure. Producer of fruit drinks, So Fresh, had told Nairametrics that its revenue had been hit by the closure.

According to Onyekwelu, the decision of the government to close the border might be for the good of producers of rice, but it simultaneously has a negative impact on X-Pression and other businesses.

He also suggested that the government should ban importation of hair products in order to protect producers in Nigeria and lure foreign importers to establish their operations in Nigeria. Onyekwelu said that this is more favourable than allowing them import into Nigeria because it will help reduce unemployment in Nigeria and boost Nigeria’s industry.

He added that government should make foreign exchange accessible for raw material and review the port charges.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

11 Comments

11 Comments

  1. Geezy

    October 29, 2019 at 2:37 pm

    This solpia treats it’s workers badly, have zero welfare for its workers, they are tasked with targets that are bone racking, I worked there between a period of 5 years, and I have some first hand experience, the Koreans are treated like gods and the Nigerian workers as slaves, it’s a master and slave relationship. The union is more or less a tool used by the management to silence the workers. Yeah! They have a huge workforce, but there’s no job security, cos you’re being threatened with replacements everytime, the working environment is also not conducive..

    You may think I hate for them cos I don’t work there anymore, but I tell you if you ask all factory workers currently working there, and others who have passed through there, it’ll be the same thing they tell you.

  2. Merci

    October 30, 2019 at 4:49 pm

    The company is commended for their stable payment of workers salary compared some companies.
    Even with the large workforce and challenges faced workers are paid as at when due. They don’t owe workers salary.

  3. Chris

    October 30, 2019 at 4:52 pm

    Add multiple taxations from govt agencies; wasteful and unproductive work ethics from employees etc as other negating factors. We are our own undoing. Its a ripple effect in chaotic proportions that is about to be unleashed: more criminals and deviants will be released into the society. Same scenario played out in the textile industry decades ago. To be or not to be, that is the question!

  4. Merci

    October 30, 2019 at 5:02 pm

    The company is commended for their stable payment of salary compared to most organizations. Even with the large workforce and challenges faced they still maintain the standard of paying workers salary when due. They never owe their workers salary.
    So, the government should assist in reviving the organization for the sake of its citizens.

  5. Merci

    October 30, 2019 at 5:16 pm

    The company is commended for its stable payment of salary compared to other organisations. Even with the large workforce and challenges they still pay salary as at when due. They never owe their workers salary.
    So, government should use this as a consideration to assist the company revive its sales.

  6. Adex

    October 30, 2019 at 5:26 pm

    Solpia Nigeria Ltd has helped and it is still helping thousands of Nigerians earn a living, take it or not, it is putting food on the table of so many people in Lagos, Nigeria. Let’s talk about prompt and unwavering payment of salaries, pension and gratuity benefits, H.M.O, Christmas bonus, salary increment every two years, company products and gifts to workers almost quarterly among other benefits. Some factory workers even earn more than bank workers. It is suffice to say that Government should come to the aid of Solpia to stop the production and sales of fake X-Pression products to combat its negative effect on the company.

  7. Alpha 2

    October 30, 2019 at 8:36 pm

    Geezy, let me educate you on the so called facts you emphasized on;
    ZERO WELFARE FOR WORKERS? Hell no! Solpia has a standard clinic inside the company where workers receive First Aid treatment, and in case of an emergency, there are 2 (Govt. App) Retainers provided by the company, all for free!!! A well ventilated canteen, changing room, cloak room are all available. Well treated drinkable water is available. What more can I say?

    WORKERS TREATED LIKE SLAVES? I disagree. Workers go on annual leave every year with handsome allowance, there is also an Health Maintenance Organization (HMO) scheme provided for all workers, there is Maternity Leave allowance for pregnant workers, Pension, Gratuity, End of the year Bonus etc…

    NO JOB SECURITY? But the company always celebrate retiring workers every year, Solpia also has a Long Service Award program for its workers, their pictures are all over the walls of the company for records. How did they managed to work for that many years without getting fired???

    To cut short the long story, I think you should channel your energy to the government to make life easier and bearable for investors across the nation, so people can make ends meet.
    Your Government can actually do better than they’re currently doing.

    • Agnes

      October 31, 2019 at 8:03 am

      When the governors are still struggling to pay workers #18,000 minimum wage, Solpia and Linda company has been paying her staff more than that. Even as state governors owe their staff five months or more Solpia and Linda company has never owned her workers, she pays her staff as at when due, even with the present situation. They have put food on so many people’s table. I think the company should be commended for this. The Government should try to fish out those faking the x-pression products and also help us to open the boarder so that the company will not close down.

  8. Ude

    October 31, 2019 at 10:34 am

    The government traverses the industrialized nations of the world in attempt to woo investors. But sooner they managed to come, the same government will come up with stringent measures that will quickly strangulate any of the thriving companies.
    Linda Manufacturing, and her sister Company, Solpia Nigeria Limited began as a mustard seed, which grew so large at a time with about 13,000 Nigerian workforce, contributing to the economic growth of the nation.
    It is not wise to kill the bird that lays the golden egg. Allowing Solpia Group to go down like many other companies, will bring much suffering to the masses if they are thrown into the ever increasing unemployment market.
    Therefore, government should review their present economic policies in order to encourage existing and would be investors to thrive, while bringing mutual benefits to all.

  9. Tope

    June 23, 2020 at 4:13 pm

    This is so sad. I tried contacting Xpressions because I wanted to be a distributor mainly because there was so much imitations, only for me to be told that they can’t meet up with the demands of their current distributors. I initially thought this was a fault of the company, but to hear of all these wickedness is so disturbing..

    • CAROLINE AKUNDUSHIMA

      July 7, 2020 at 9:39 pm

      Pls how did you contact them? I would like to contact them too.

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Companies

Naira devaluation, FX scarcity caused increase in cost of goods – Nigerian Breweries

Nigerian Breweries has revealed that Naira devaluation, FX scarcity caused increase in the cost of its goods in 2020.

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Jordi Borrut Bel, Nigerian Breweries Plc

The Finance Director of Nigerian Breweries Plc, Rob Kleinjan, has revealed that the increase in the brewer’s costs of goods was due to the devaluation in naira and FX scarcity, which led to the increase in the cost of inputs such as sorghum and sugar, as they are not fully produced locally.

This disclosure was made during the Nigerian Breweries’ Fact Behind Figures results presentation today.

However, Kleinjan explained that the increase in cost could not be fully attributed to currency devaluation and foreign exchange scarcity, which exerts pressure on imported input materials.

He said the increase in Nigerian Breweries’ costs of goods sold, as reported in its unaudited financial results, could also be linked to the volume of goods sold, as the company’s sales volume in Q3 increased by almost the same percentage as the cost of goods sold.

However, Mr. Kleinijan reiterated that to mitigate further losses, it was important for the company to focus on the supply chain and seek ways to mitigate price increases.

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What they are saying

The Managing Director of Nigerian Breweries, Mr. Jordi Borrut, while speaking at the virtual event said:

In 2020, the results of Nigerian Breweries were adversely impacted by COVID, VAT increase, FX devaluation and scarcity of foreign exchange. The year started with a promising 1st quarter, which was heavily impacted in Q2. The Nigerian market, however, rebounded in Q3.”

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Mr. Rob Kleinjan, while explaining the factors behind the increase in Nigerian Breweries’ cost of goods sold in the first nine months of 2020, said:

It is also clear that the increase in cost is due to the devaluation and the FX scarcity which has put pressure on our input cost. If you look into the main elements we use, which are sorghum and sugar – they are not fully produced locally, so when the currency is devalued, the prices of these inputs will soar.

That’s why it’s important that we are focused on the supply chain, and seek for ways we can mitigate any of the price increases, because the increase in cost comes from the input prices, which come from FX scarcity.”

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Companies

United Securities Limited changes name to Coronation Registrars Limited

United Securities Limited formally notifies its numerous customers and stakeholders of a change of name to Coronation Registrars Limited.

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In line with section 30(3) of the Companies and Allied Matters Act 2020 (CAMA), United Securities Limited has formally notified its numerous customers and stakeholders that it has obtained regulatory approval from the Corporate Affairs Commission to change its name to Coronation Registrars Limited.

The disclosure is contained in a verified post on Linkedln, signed by the firm’s Secretary, Omotoyosi Kola-Ojo, and seen by Nairametrics.

What this means

In line with the recent corporate action and according to section 30(5) of the Companies and Allied Matters Act, the company has been issued a new Certificate of Incorporation by the Registrar General of the commission, evidencing the change of name.

What they are saying

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A verified post by the Firm read thus: “The Public is hereby informed that United Securities Limited having passed the necessary Special Resolutions in line with Section 30(3) of Companies and Allied Matters Act 2020 (CAMA) and obtained the necessary regulatory approval of the Corporate Affairs Commission, has changed its name to CORONATION REGISTRARS LIMITED.

The public is further informed that pursuant to Section 30(5) of the Companies and Allied Matters Act, the company has been issued a new certificate of incorporation by the Registrar General of the Commission evidencing the change of name. All stakeholders are requested to take note of the above information.”

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We have exported 7 clinker vessels to other African countries since June – Dangote Cement

Dangote Cement says it has exported 7 clinker vessels to other African countries since June.

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Dangote Cement reveals share buyback plans, DANGOTE CEMENT records loses as ASI decline by 0.39%

The Group Executive Director of Dangote Cement, Michel Pucheros, announced that Dangote Cement, Africa’s leading cement producer with nearly 48.6Mta (Million Metric Tonnes Annually) capacity across Africa, has exported 7 clinker vessels to date to other African countries.

This statement was disclosed by Mr. Pucheros in a press release issued on the Group’s performance in the third quarter.

  • The cement maker exported 2 vessels of clinker per month to Cameroon in the third quarter of 2020 via the Apapa export terminal, which takes the Group’s clinker export for the quarter to 6 vessels.
  • In addition to its maiden shipment vessel to Senegal, which is a total of 27.8Kt of clinker, took its clinker exports to other African countries from June to date to 7 vessels.

In his statement, Mr. Pucheros said, “We continue to focus on our export strategy and are on track to ensure West and Central Africa become cement and clinker independent, with Nigeria as the main supply hub.

“Clinker exports have steadily been ramping up in Q3 after our maiden shipment in June 2020, whilst land exports have also resumed.”

However, as the Group ramp-up production across all segments and regions to reach its cement production and bagging capacity of 48.55 Mta, he said,

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“Dangote Cement’s strategy to offer high-quality products at competitive prices is meeting customers’ expectations in Nigeria and across the continent, where we continue to deploy excellent marketing initiatives and operational excellence across the continent.”

About Clinker

  • Clinker is a nodular material which is used as the binder in cement products. Clinker is produced inside the kiln during the cement manufacturing process.
  • The primary use of clinker is to manufacture cement, as cement is produced by grinding clinker.

What you should know

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Nairametrics had reported that Dangote Cement Acting CFO, Guillaume Moyen, during a virtual event in September disclosed that the cement producer is set to commence clinker export to other African countries within the next few weeks.

He reiterated that the Management of the company is on course to sell more clinker across West Africa, and commence shipment to Central Africa in H2 2020.

Why it matters

The export of clinker to countries where limestones are not available in huge quantities gives these countries a chance to produce its cement for construction purposes.

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