FAMAD: Poor Quality Shoes from China, European Countries Continue to Rival Local Production

Kayode Tokede 

The Footwear and Accessories Manufacturing and Distribution Plc, (FAMAD), has criticised the influx of poor-quality imported footwear from China and European countries that continue to   rival the growth of local manufacturers in the country.

The Chairman of FAMAD’s Board of Directors, Pastor Ituah Ighodalo, stated this in Lagos during the company’s presentation of financial reports for 2007 to 2021.

The financial reports, prepared in compliance with the statutory requirements of the Companies and Allied Matters Act of 2020, were presented to shareholders during the company’s 45th to 59th Annual General Meeting (AGM).

Despite challenges within the industry, Pastor Ighodalo expressed optimism about the company’s future, saying the company had “demonstrated resilience and determination, and we are certainly poised for growth.”

Ighodalo explained that the firm had successfully navigated challenging financial times without borrowing any funds, despite the influx of second-hand and low-quality shoes from foreign countries flooding the Nigerian footwear market.

He said, “I am proud to say we have reached a turning point. In the last few years, we’ve been able to update our machinery, and our product quality has improved as our designs for school shoes have increased.

“This positions us in a place where we can offer good, first-hand quality footwear to the market, giving the China-made shoes a run for their money and gradually making the second-hand market redundant.”

“To cushion the effects of low patronage due to the off-season periods for school shoes, we continue to master the art of not just institutional shoes like boots, safety shoes, etc., but we have started to create a line for men’s formal footwear. The market response continues to increase positively,” he added.

Speaking earlier, a shareholder of the company, High Chief Robert Igwe, called the decision of the management to present the results to shareholders a bold step, stressing that the management has the interest of the company.

He, however, urged the management to take the company forward, suggesting a capital raising exercise to drive share capital and boost production.

“The board should be thinking of injecting fresh capital in a move to drive the growth of the company,” he added.