Layo Bakare-Okeowo, Vice-President of the Lagos Chamber of Commerce and Industry (LCCI) and MD/CEO of FAE Limited, has attributed the success of her envelope-making company to its predominantly female workforce.
With 70% of her staff being women, Bakare-Okeowo believes that their attention to detail and finicky nature make them ideal for envelope making.
She added that persistent transportation challenges continue to undermine the agreement’s goal of seamless intra-African trade, despite Nigeria’s active role in promoting the African Continental Free Trade Area (AfCFTA).
The AfCFTA, which unites 54 African Union member states into a single market of 1.3 billion people with a combined GDP of $3.4 trillion, was launched in 2018 and became operational in January 2021. Its core objective is to eliminate tariffs and non-tariff barriers, foster economic integration, and promote sustainable development across the continent.
However, logistical bottlenecks, particularly in the movement of goods from Nigeria to other African countries, remain a major obstacle. Poor road networks, bribery at every checkpoint, and inefficient port operations have driven logistics costs high. These inefficiencies not only delay shipments but also erode the competitiveness of Nigerian exports, especially for small and medium-sized enterprises.
Nigeria has been championing AfCFTA’s digital trade and regional integration agenda, aiming to boost GDP, create jobs, and expand exports of commodities, manufactured goods, and services. Yet, the success of these ambitions depends on removing non-tariff barriers such as excessive documentation, inconsistent inspection protocols, and fragmented regulatory standards. Without coordinated efforts to streamline trade logistics, the transformative promise of AfCFTA may remain out of reach.
In this exclusive interview with Nairametrics, Layo Bakare-Okeowo, Vice-President of the Lagos Chamber of Commerce and Industry (LCCI) and MD/CEO of FAE Limited, emphasized the urgency of addressing these barriers and why she hires more women than men.
Nairametrics: FAE Limited has thrived for five decades. What leadership principle or philosophy has sustained the business relevance in such a niche as a manufacturing company?
Layo Bakare-Okeowo: Thank you very much. Number one, the only reason why we are the largest in West Africa today is because we are playing in an industry that is not common, then two, quality. Everybody asks me that question: why is it that 70% of my staff are women?
The reason is because in envelope making, you need to be well-detailed. When you say it’s a 4×9-inch envelope, it must not be 4×8.5 or 4×9.5; it must be exact, then quality, I’m sure you’ll say, because I’m a woman, that’s why I’m saying this, we are always finicky.
Women are conscious about quality. The machines they use in Germany, in America, that’s what I use. I use German machines, and that’s the best all over the whole world. So the only reason I’m able to service this industry is because I’m well-detailed and my quality is top-notch.
Nairametrics: We know in post office those days, we used envelopes, but things have changed, and people have transitioned into a digital way of sending messages using phone, social media, and all that. How has envelope manufacturing remained viable, and what innovation has FAE introduced to stay in this business?
Layo Bakare-Okeowo: I think I’ve already mentioned tamper-proof, steel-resistant envelopes. We are doing a lot very well on our tamper-proof envelopes. Two, we have our RFID envelopes.
The gold chip on our ATM card is where our NIN, our date of birth, everything is. If your ATM card is in your pocket, if I have my card reader in my hand, and I’m just trying to play with you like this, provided it’s about 500 metres to you, I will steal all your money from your bank without raising anything. Your money is gone.
But FAE is proud to say we are the first to bring this into Africa as part of our niche. Another niche that we do, I don’t know, maybe you know this good old conqueror envelope. We do something better than that, which is environmentally friendly.
If somebody forges the signature of the governor of the Central Bank or forges the signature of the Lagos State governor, we can make an embedded watermark, a secret watermark in your paper. If anybody brings it to you, all you need to do is just put the paper under the lights, and you will see whether the letter is from you or not. FAE is proud to bring that into this country.
When I tell people I make envelopes in this digital economy, they’re usually very surprised. But we are doing fantastically well, I am bold to say that, with a reasonable turnover, we are growing yearly. But what I’m just worried about is our post office. That is not working.
A tonne of paper now is about $1,300. Imagine us in Nigeria that we are exporting that out of this country. We now have some Chinese, I think about four, three Chinese and one Indian companies that are making paper now in Nigeria. They are so overwhelmed. They don’t even have enough capacity. They are even trying to get more paper mills, more machines. Foreigners came in. Why can’t we do it right? Because of our policy.
Paper is a fantastic business. Paper should be Nigeria’s second oil. Do you believe that this, our old clothes, can be recycled to become paper? Do you believe that the Kenaf plant, which we have a lot of in Nigeria, can become paper? Do you believe that bamboo can become paper? We’re just somersaulting policies that are affecting business.
Nairametrics: Given your experience expanding across multiple African countries, what do you see as the biggest barriers to intra-African trade, and how can this be solved?
Layo Bakare-Okeowo: To be honest, when it comes to publicity, when it comes to awareness, it’s no more a secret that AfCFTA has come to stay. But transportation of goods from one country to another is still a big problem.
Do you believe that if I’m shipping something to Germany and I’m shipping something to Ghana, Germany is cheaper? I think it would be better if there were some incentives that would attract these shippers to ply that route. That would be my number one suggestion. Because if it’s profitable for the shippers, you have a lot of them there. So, there’s still a problem there.
Then two, when it comes to transportation by road, although other countries kept on saying that they don’t have a problem, I think we have a problem in Nigeria. There are many bottlenecks, many checkpoints, a lot of bribery, and a lot of corruption on the road. And if you now get to the border too, I’ve not seen any changes when it comes to all these border problems issues. But I think it’s a Nigerian issue. It’s something the Nigerian government should address.
Nairametrics: How has the AfCFTA affected manufacturing and cross-border commerce for Nigerian companies?
Layo Bakare-Okeowo: I think AfCFTA is the best thing that has happened to us in Africa, honestly. If it’s been implemented very, very well, because we are talking of a population of about 1.3 billion, if all hands are on deck. I guess it’s just a teething problem. We’ll overcome it. But what I would just say is that, yes, we are a giant of Africa. But other African countries are pulling their weight. I just hope that they don’t put us behind.
Nairametrics: What structural changes do you believe are necessary to make Nigeria a true manufacturing hub for West Africa, or Africa?
Layo Bakare-Okeowo: We need to be intentional that we really want to industrialise this country. One, let’s start from our kindergarten. We might think they are too young. But in China, they started all this, their technical education from kindergarten. The federal government needs to add technical education into the curriculum. Today, I think it’s until when they get to JSS3, before they now say, Oh, do you want to go commercial? Do you want to do science? But I think let’s start from the kindergarten.
Because I can remember, while growing up, there was this book, Integrated Science. It’s about all these technical things. So, I will advise that we start. Yes, it’s good that we have a lot of technical colleges that are springing up. But we are catching them in the middle. Let’s catch them young.
Then, two Nigerians are very hardworking. And we are die-hard. The government should stop taking politicians on business trips. Let them go with manufacturers. Because all these people don’t know how to hold a spanner.
Some of them cannot run a business to succeed. The only business they know how to do is politics. They should encourage us as manufacturers. I don’t want to condemn the government; they are trying. At least, if you look at this tax reform, honestly, it’s the best thing that has happened to Nigeria. But let the government look inward again to encourage us as manufacturers.
Nairametrics: How can local manufacturers compete with imported goods, especially in an environment where infrastructure and energy costs remain high?
Layo Bakare-Okeowo: Before you go into manufacturing, you need to have a passion for manufacturing. There are so many people who came into manufacturing who are no more today. Not because they are not smart, but because of the problems in Nigeria when it comes to manufacturing.
But you need to have a passion for manufacturing before you go into it. In my case, if I wake up in the morning, if I go put on my pullover and I go into the factory, hearing the sound of my machine motivates me.
And even now, I’m not an engineer. I’m not a technical person. But maybe because of the number of years that I’ve spent in manufacturing, if a machine is going to break down next week, I will know by the sound. It’s because I have a passion for it. It’s because I have concentrated on what I am doing.
Although the company started 51 years ago, I’ve been here for 40 years. I’ve never worked in any establishment in my life, except FAE. And that’s why we are doing well, because I am always inquisitive in whatever I am doing. And that’s why I’m able to meet deadlines when it comes to delivery dates. I don’t joke. If I tell you I’m delivering your envelopes 20th of May, it must be the 20th of May or the 18th of May because you should have integrity when it comes to manufacturing.
Nairametrics: From your vantage point as a vice president of the Lagos Chamber of Commerce and Industry (LCCI), what are the most pressing regulatory reforms needed to improve ease of doing business in Nigeria?
Layo Bakare-Okeowo: The Lagos Chamber of Commerce and Industry has always been pressing when it comes to reforms of ease of doing business. But speaking in my capacity, I think the government should learn to hire and to fire when things are not going right, and have the political will to deal with situations.
For example, I have had my consignment at the port since the 18th of July, and today is the 12th of August, yet I’ve not been able to collect it. Not because I have not come to collect it. Not because I’m not ready. Not because I don’t have the money to clear my goods, but because of the government agencies’ bottleneck at customs.
They said they changed from one portal to another, and they are not able to generate power. They are not even able to load up documents. They even called us for a meeting. We went there; they gave us phone numbers. That is ringing no reply. I’m saying this categorically because I’m bitter.
I am going to pay demurrage now. Because of something that is not my fault. Now, you are saying that there is inflation. Where will we pass that cost? My staff are there, not working. Because there is no raw material, and not because I did not order. When my reorder level was due. Are you telling me that six weeks of contingency, six weeks of planning for contingency for raw material, is too small?
After borrowing at the rate of 35-36%. All these problems are killing manufacturing. If Nigerian Customs wants to fly in expatriates within one week to come and repair whatever is wrong with their system, they can. How can you shut the whole economy down because you wanted to change one system from the other? This is an act of insensitivity of the highest order.
I’m not a politician. I don’t know how to do politics. I’m doing my own business. But you kept on frustrating us. It’s very, very wrong. Up till now, I still don’t have my raw materials in my factory, and you say you are doing ease of doing business. What type of ease of doing business is that?
Nairametrics: So, a follow-up to that, did they give any time frame? Has that time frame elapsed?
Layo Bakare-Okeowo: Are they even talking? They are faceless. They are not talking to us. They are faceless. When the almighty customs are ready, they will answer.
Nairametrics: How can the government and private sector collaborate? Or how can their collaboration be strengthened to support indigenous business, especially the SMEs in manufacturing?
Layo Bakare-Okeowo: Well, to me, honestly, I don’t know. Because I remember several years back, there was a time they had meetings with the organised private sector, and we had been invited to Abuja to let them know what our problem was. But I think they stopped that.
What they used to do now is, they pick from each organised private sector. They pick from MAN, Lagos Chamber of Commerce and Industry, NECA, and some notable businessmen and women. We had meetings. I think it was once every quarter. Because I don’t want to condemn totally. Maybe if they hear what is happening at the point where the problem started, they will be able to nip it immediately, and maybe that could help.
Nairametrics: What role should business leaders like yourself play in mentoring and building capacity for young entrepreneurs?
Layo Bakare-Okeowo: Holding their hands. Giving them confidence that they can make it. Because there are a lot of things that are frustrating the Gen Zs, that’s why they are ‘japaing’.
So, for example, I have a lot of mentees because I happen to head the best education unit of LCCI. I’ve had a relationship with them for almost a year, so whenever they need anything or they are having a problem, I help them out. If it’s a problem that they need to get in touch with people in the corridors of power, I help, and if it’s a banking issue, I help them to talk to their bankers and everything.
But we all have a lot of duties to do as mentors. We should give them our shoulders to cry on, and even as old as I am, I have my mentor, too. My mentor is Olori Akande. I’ve tolled her style and I’m doing well, and she’s responding to me very well too. She’s a fantastic woman who, if I come back to this world again, I will always want her to be my mentor.
Nairametrics: I know you are very passionate about speaking about women. How can Nigeria better support women in manufacturing and finance?
Layo Bakare-Okeowo: Many women were timid, but thank God for the likes of some organizations that have tried a lot when it comes to training women and empowerment. But one thing I will always emphasize, before we even get out of our shell, those men are taking everything. They are the ones who are building the house. They are the ones who have the financial muscles. So, my advice is that the government should please guarantee our loans.
Nairametrics: What sector within the Nigerian economy do you believe is ripe enough for innovation and investment over the next five to ten years?
Layo Bakare-Okeowo: Tech. For example, LCCI just had an innovation hub at a business district where I happen to be their boss. So, I would say tech and manufacturing would be my two major areas. Robotics as well, you know, if our young teenagers are involved in tech, Nigeria will be the world’s maker but manufacturing too. Because manufacturing is the bedrock of every economy, which is what China is leveraging on now. You can see how Trump bullied China, and China bullied back, and they called off his bluff.
