Manufacturers Association of Nigeria says product price increases are unlikely to halt in the absence of a corresponding plan to reduce the skyrocketing costs of manufacturing.
This was said by the association’s director-general, Segun Ajayi-Kadir, during a recent media debate with reporters according to The PUNCH.
The MAN DG bemoaned the regular increases in the interest rate for cargo clearance and claimed that the nation’s present economic climate was forcing firms to shoulder higher manufacturing costs.
“They changed the assessment of import duties five times in two weeks. Can a producer carry that out? The government has no justification for not being able to consciously freeze the exchange rate for imported raw materials.
“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.”
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.
He said “In the interim, we have the highest petrol price in the world. Thus, we shifted our focus from the absence of electricity. The next thing we did was buy diesel. The current amount is N1,350. Petrol is now priced off the market and indexed against the dollar if your equipment was adapted to accept fuel.
“Anxiety is evident throughout society. To make sure that we consciously and purposefully reduce the cost of conducting business, all hands must be on deck. Manufacturers will be your best buddy in the business world.
“If we reduce the cost domestically and produce at a cheaper cost. When we export and earn money, we will become more competitive. The individuals who are tracked the most in international trade are manufacturers. You will be unable to reserve your next reservation if you do not repatriate your profit. Thus, this is a reliable aid during these trying times that we can use to strengthen the national economy.”
Nigerians have been dealing with what experts in economics have called a “cost of living crisis” in recent months, as the prices of goods have surged to all-time highs.
Recent economic changes have been mainly blamed for the spike in goods costs, since they have resulted in a major depreciation of the local currency and increased energy costs.
