Nigeria: Economic Woes – Hundreds of Factories Close Down

The current economic hardship has led to the closure or total collapse of hundreds of factories across the country, the association of manufacturers said yesterday.

The Executive Secretary of the Nigerian Association of Small and Medium Enterprises (NASME), Eke Ubiji, explained how in 11 states 222 companies have collapsed or are ailing, a situation that could have been averted if there was patronage of local goods, low rate of foreign exchange and supportive governmental policies.

Speaking at the launch of the ‘Manufacturing Sector Survey in Nigeria: Industry Snapshot’ conducted by NOI POLLS and Centre for the Study of the Economies of Africa, the manufacturers decried the harsh operating environment in recent times.

The Director, Economic and Statistic, Manufacturers Association of Nigeria (MAN), Mr Ambrose Oruche, said manufacturing, as the heart of industrialisation, was constrained on a daily basis by policy mismatch.

He lamented the repercussion of the exclusion of 41 items from accessing FX from the official markets by the Central Bank of Nigeria, saying that about 50 large factories closed down this year alone.

In his presentation, the Director, Research and Advocacy, Lagos Chamber of Commerce and Industry, Dr Vincent Nwani, said what has been happening to the manufacturing/industrial sector was unfortunate, going by the number of industries experiencing a decline in sales due to poor/stagnant economic growth, with exchange rate crises been the top leading challenge.

Speaking to newsmen on the survey findings, the Chief Executive Officer of the NOIPOLLS organisation, Dr Bell Ihua, said their survey findings revealed that poor power supply, high cost of energy and difficulty in accessing funds and FX were some of the issues bothering manufacturers.

He called on government to take proactive measures to address the challenges for the betterment of manufacturers.

Source: Daily Trust.