Follow Us on Google
The Manufacturers Association of Nigeria (MAN) has said that many Small and Medium Scale Enterprises (SMEs) in Nigeria experience hardship in business due to poor power supply, among other challenges.
MAN’s Acting Chairman at Apapa branch, Joe Onyebu, made the disclosure at the 10th edition of the Environmental Safety Seminar, held in Lagos, recently.
Onyebu said that the drop in power supply over the last few months among other issues has become a huge challenge in the sector.
He explained that SMEs are mostly affected by the problem of the epileptic power situation leading to the closure of a number of small businesses in the country, expressing concerns that the high cost of running manufacturing plants on generators was one of the reasons most local companies have failed to be competitive and profitable. He added that it is estimated that Nigerian companies incur added costs running into millions of naira in the course of having to power their facilities on generators.
The MAN boss also lamented the deplorable states of Nigerian roads, stressing, the government needs to pay more attention to areas such as the Amuwo Odofin Industrial Axis, Mile 2- Coconut Road, Mile2- Kirikiri Road, Coconut to Liverpool Road, for effective operations of SMEs. On taxation, he stated that Lagos State Environmental Protection Agency (LASEPA) has increased by over 150 per cent the environmental development levy and petroleum storage permit payable which has affected the manufacturers.
He noted that urgent attention needs be paid to addressing these challenges facing the economy, especially as it relates to manufacturing and running costs.
“This matters because if these challenges are not fixed by the government, there will be continued hardship in the sector. This will, in turn, result in low output, low income and loss of jobs in the long run.
