Tackle Challenges Impeding Economic Growth, FG Urged

30 Nov 2012

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021012T.Namadi-Sambo.jpg - 021012T.Namadi-Sambo.jpg

 Vice President  Namadi Sambo

Hammed Shittu 

Manufacturers in the country have cried out to the Federal Government to rise up to the various challenges impeding the socio-economic growth of the nation, which have continued to affect profit maximisation in the vital sector.

The Executive Director, Commercial of LUBCON International, (the producer of lubricants oil), Ilorin, Kwara state, Mr. Fatai Woli, made the call during the first draw of LUBCON oil promo held in Ilorin, the state capital.

He said, “Most of the nation's manufacturing companies are only barely managing to survive due to the challenges and economic situation”.

Woli, who highlighted such major negative factors as global economic meltdown, unreliable power supply and compulsory need to import raw among others, called on the federal government to revive oil refineries in the country to help manufacturers' productivity.

According to him, “In a situation where you have competitors, if you overprice yourself, you may not be able to sell your product. So, manufacturers are careful when it comes to pricing. We only make sure we pay our bills, and the little left over is used to continue to turn the business around”.

He said, “Every month, we consume diesel of N10 million to N15 million to power our KVA generators due to irregular power supply from the PHCN. We are forced to connect to 33 KVA electricity power line spending about N14 million before we can enjoy the benefit.”

Woli, who said sourcing for raw material was another problem, added that the company made use of byproduct of petroleum to produce its lubricants like engine oil, aviation fuel.

“Our refineries are not working. If they are working, the base oil we use can be sourced locally. But we import and it means paying so many charges. By the time it comes to market, the price we are taking it to the market has gone up drastically”, he said.

He noted further that the situations were not palatable for business to grow and “if this is not addressed, many manufacturing companies may collapse at the end of the day.”
Woli therefore called on the government to rise up to the challenge so as to accelerate the socio economic growth of the nation.

Tags: Business, Nigeria, Featured, Economic, Growth, FG

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