Economy
MR Lanre Popoola, an official of the Manufacturers Association of Nigeria (MAN), on Monday in Ibadan urged the Federal Government to make the agriculture sector viable.
Popoola, who is the association’s Branch Chairman in Oyo, Osun, Ekiti and Ondo States, said this would help to provide raw materials for the manufacturing industry.
He told the News Agency of Nigeria (NAN) that the manufacturing sector has been going down in the last 12 years due to several recurring factors.
Popoola lamented that the issues associated with those factors were yet to be addressed.
“Accessing forex to import raw materials in the past has been difficult, hence the shift to the other market to access what was needed.
“Getting forex now for the importation of raw materials at a high rate translated to high cost of goods which might not be palatable to the populace.
“If you are unable to sell some of these products you will have to reduce costs, and then you will reduce production which will translate to laying off of some staff.
“And because of this ripple effect on the economy, it created more unemployment and threatened the sustainability of the industry,” the branch chairman said.
He pointed out that government’s unfavourable policies on forex, power and agriculture were major contributors to the problem and downward trend of the manufacturing sector in Nigeria.
Popoola said the effect of subsidy removal on premium motor spirit (PMS), and the closing down and departure of some foreign industries from Nigeria were taking their toll on the economy.
He said the situation has heightened inflation, leading to the disposable income of people being affected and meaning their purchasing power has reduced.
“This means they will have to prioritize what they buy. Meanwhile, the present situation has been termed ‘Sachet Economy’ in which companies produce goods in sachet because people now buy in sachet.
“They were doing this just to survive. It was difficult and it is still very difficult, but we are still hopeful,” Popoola said.
He called for better management of Nigeria’s resources such as the fixing of refineries, for the country to export its petroleum products and for enough money to circulate.
Popoola said MAN was hopeful that forex would stabilize at a rate that would be favourable to manufacturers.(NAN)
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August 14, 2023 @ 3:28 GMT|
Tags: Mr Lanre Popoola
