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Soaring Fuel Prices Threatening Manufacturers’ Existence

Adaobi Rhema Oguejiofor

The Manufacturers Association of Nigeria (MAN) has expressed concerns over the current soaring fuel price, stating that it is threatening the Association’s continued existence.

MAN also urged the Federal Government to come to their aid and save the sector from total collapse in an already struggling economy, adding that they were in the worst of times seeing that the cost of fuel and diesel have undergone an astronomical increase along with other challenges bedeviling the sector.

The Association argued that the decision of some companies to shutdown activities in Nigeria is as a result of the travails that many multinational firms have had to make in recent years with the adverse effects on the economy.

According to them, despite presenting international businesses with the largest market on the continent, the nation still suffers from worrying economic slow-down decisions, which are often provoked by the rising cost of doing business, worsened by the epileptic power supply, and weak infrastructural backing, among others.

The Chairman of MAN for Imo and Abia States, Dr. Jude Eluma, while commenting on the dire state of the manufacturing sector in the country, said that without any doubt, more businesses, especially those of the Micro Small, and Medium Enterprises (SMEs) would soon pack up due to the harsh economic environment.

In his own words, “manufacturers depend 70 percent on diesel-powered generators and with the cost, which is now up at the rooftop, most factories might close up soon. The government should rise to the occasion to save manufacturing as a critical real sector of  the economy.”

He also advised the government to be steady and decisive in its policies to enhance the smooth flow of activities. 

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