The Manufacturers Association of Nigeria (MAN) has declared that the sector holds the key to sustainable palliative.
Director General of the association, Segun Ajayi-Kadir, who made the assertion in his address on the impact of petrol price hike, “A Call to Action for the Nigerian Government,” said since the Federal Government made the decision to remove petroleum subsidy, the nation has witnessed a second increase in less than two months, leading to higher transportation costs and increased cost of goods and services across board.
He appealed to the government to take action and mitigate the challenges faced by the manufacturing sector, noting “we believe that the sector holds the key to sustainable palliative measures for the Nigerian people.”
He lamented however, that the growth of the sector is hampered by constraints that need to be addressed.
Highlighting the dire situation, Ajayi-Kadir suggested that the planned increase in electricity tariff be avoided.
“The combination of rising petrol prices and increased electricity costs will only exacerbate the difficulties faced by the average Nigerian and the manufacturing sector’s limited profitability.
On his part, President of MAN, Francis Meshioye, added that fuel price hikes have already led to increased logistics costs, impacting manufacturers who had to readjust budgets due to the subsidy removal.
“High operating costs, stemming from inadequate electricity supply and expensive alternative energy sources, are also plaguing the sector. It’s crucial for the government to engage key stakeholders before making far-reaching decisions like this. The uncertainty surrounding further increases is a cause for concern among manufacturers, making it difficult for businesses to operate and impacting consumers’ purchasing power.”
Meshioye implored the government to pursue policies and initiatives that will alleviate the current hardship and foster the growth of the manufacturing sector.