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Indigenous manufacturers lament rising cost of doing business in Nigeria – From Chukwudi Ejimofor/PH

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The 38th Annual General Meeting/5th Made-in-Nigeria Products Exhibition of Manufacturers Association of Nigeria (MAN),  provided a veritable avenue for indigenous manufacturers to share experiences on the constraints inherent in doing business in the country. 

The event which held between 31st August and September 1, 2022,  at the Atrium Event Center, along Stadium Road Port Harcourt, Rivers state capital, attracted just a few companies, leading to the under-utilization of the  exhibition stands.

 Nevertheless, there was a consensus among the exhibitors that the cost of doing business in Nigeria is becoming high, and the manufacturers  appear to be the worst hit by unprecedented high cost of the essentials that aid the business of manufacturing companies in the country. 

The challenges faced by manufacturers include but not limited to multiple taxation,  astronomical rise in foreign exchange,  rising cost of importation and sourcing of raw materials and nonchalant attitude of the Nigeria government to rescue the pathetic situation of Nigeria indigenous manufacturers.

Mr. Aluede Paul Akhere, manager, Sales and Marketing, Green Hills Integrated Services Ltd, an indigenous manufacturing company, harped on the state of indigenous manufacturers in Nigeria, his company’s products quality and the standard they operate.

“Green Hills integrated Services Ltd is wholly the Nigeria PVC manufacturing company based in Port Harcourt. Our products  which are found ins south-south market are widely used in the building, food and medical sectors on the country’s economy, Our products are known for its technical strength and elasticity. They cover the range of 20mm to 50mm for both plumbing and conduit wiring; our products are certified by standard organization of Nigeria SON. Our Motto is “Superior Quality”

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“The demand of our  products is very high in Nigerian and international markets because of its high quality”, he said.

However,  he said indigenous manufacturing companies are faced with the perennial problem of  near zero power supply, difficulty in sourcing forex  to purchase raw materials,  and multiple taxation

“The indigenous manufacturers are faced with so many constraints including low electricity supply. Raw materials are not sourced locally; to source for forex for importation of our raw materials is huge constraint to local manufactures. We need  government intervention to reduce the tariff for forex to assist local manufacturers in Nigeria. The host community has always been there which we have developed a method of tackling it”.

He further expressed displeasure on the standard of this year’s MAN exhibition, which he described as poor, comparing to the exhibition his company has attended within and outside the Nigeria.

“This is my company’s first time of attending MAN exhibition, but we have attended exhibitions both in and outside Nigeria. The environment of the exhibition is conducive but the organization is poor and the turn out is not encouraging”.

Prominent amongst the companies that exhibit their products were Indorama Eleme Petrochemical Limited, International Breweries PLC, Danelec Fze and host others.

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