The Manufacturers Association of Nigeria has said that the hike in the prices of products is unlikely to stop without an attendant solution to the soaring production costs.
The Director-General of the association, Segun Ajayi-Kadir, stated this during a media parley with journalists recently.
The MAN DG, who lamented the frequent hike in the interest rate for cargo clearance, said manufacturers were being saddled by increased production costs due to the current economic situation of the country.
He said, “Within a space of two weeks, they changed the assessment of import duties five times. Can a manufacturer do that? There is no reason the government cannot deliberately freeze the exchange rate for raw materials that are imported.
“President Tinubu, on his first day in office, said he was going to promote domestic manufacturing. You don’t do that by killing domestic producers. It is certain, there is no way I will import my raw materials at a very high cost and you expect prices to reduce in the market. It is not going to happen.”
He also expressed dismay that, despite the erratic power supply in the country, other alternative sources of energy being employed by manufacturers had become unaffordable and unsustainable to operate.
According to Ajayi-Kadir, it would be impossible for manufacturers to stay competitive amid the rising cost of production.
He added, “Meanwhile, we have the highest price of gas in the world. So, we moved away from the unavailability of electricity. We moved on to purchase diesel. It is now N1,350. So, if you converted your machine to take gas, gas is now priced off the market and indexed against the dollar.
“There is palpable anxiety in society. All hands must be on deck to ensure that we deliberately and intentionally lower the cost of doing business. If you want to do business, manufacturers will be your best friend.
“If we produce at a lower cost and bring down the cost domestically. We will be more competitive when we export and we will bring in the dollars. Manufacturers are the most tracked people that engage in international trade. If you do not repatriate your profit, you can’t make your next booking. So, this is a sure helper in these difficult times that we can leverage upon to improve the economy of the country.” •Continued on
In recent months, Nigerians have faced what economic experts have dubbed a cost-of-living crisis, with the prices of products skyrocketing to record highs.
The surge in prices of products has been largely attributed to recent economic reforms, which have triggered a significant devaluation of the local currency and high energy costs.
