There are strong indications that more manufacturing companies in Nigeria might fold up anytime soon, due to harsh economic environment, coupled with forex scarcity, currently threatening their existence.

The development is coming at a time Post-Nigeria had in December last year, reported ‎that companies which were previously effectively operating in Nigeria had folded up and or, moved to other neighbouring countries, due to President Muhammadu Buhari’s contradictory policies.

Some of these companies were spending a whopping sum of N500 billion yearly in ‎fuelling, running and maintaining their power plants, aside additional costs of infrastructural deficiencies.

Related: Why Ghana has become our only option – MAN

Despite all efforts made by the All Progressive Congress, APC, government in recent times to rejuvenate the dying economy, there have been series of consistent negative economic growth, which has successfully placed Nigeria in recession.

With the crisis degenerating on a daily basis, without any proven antidote to cushion the effect, the National President of the Manufacturers Association of Nigeria, Dr. Udemba Jacobs, and the Chairman of its Ogun State Chapter, Dr. Wale Adegbite, have pleaded with President Buhari to address the situation in no distant time.

They identified high exchange rate, epileptic power supply, high cost of diesel, among several others, as being responsible for the nation’s stunted economic growth.

Post-Nigeria further gathered, that the development has instigated palpable fear in the hearts and minds of Nigerian workers, as many are likely to lose their jobs in the coming weeks.

Related: Mass sack hits banks as Buhari’s policies fail

The duo speaking further, lamented that, as long as the Federal Government is not making available enough forex for its members to produce goods and services, the Gross Domestic Product, GDP, will continue to decline, and with the decaying infrastructure and high cost of diesel to power their machines, most manufacturers might have no option, than to lock up shops.

The multiplying effect according to them, ‎is that more Nigerians will be disengaged, which will also affect capital flow, which is capable of kicking back an economy.

Speaking at the ‎31st Annual General Meeting of the Association in Ota, Ogun State, with the theme, “Industries and The Economy: Problems, Prospects and The Way Forward,”‎ the MAN President said: “I will like us to consider the option of resource-based industrialisation and greater utilisation of local raw materials for our production”.

The State Chairman, decried that the economy had been experiencing stunted growth, despite the various reforms by the Federal Government, because “the reforms were not deep enough to accelerate the growth of the sector.”

On the issue of electricity tariff increase, he said MAN, had secured an injunction restraining the Nigerian Electricity Regulatory Commission, NERC, and distribution companies from implementing it.

Meanwhile, Governor Ibikunle Amosun, of Ogun State, who also spoke at the event, called on the real sector not to give up so easily, but explore other avenues to rescue the national economy, by taking advantage of the nation’s agricultural and natural resources.

The Governor, who was represented by the Commissioner for Commerce and Industry, Bimbo Ashiru, said the State Government had been having consultation with the Federal Government, on the reconstruction of the federal roads in the State, and improving power supply.

The Commissioner for Environment, Bolaji Oyelese, on the other hand appealed to the manufacturers to comply with emission and pollution rules, in order to avoid sanctions.

Related: Businesses to Shut Down, as Diesel Sells Above N200 per Litre



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