Save manufacturing sector from total collapse — May & Baker boss

UNLESS urgent steps are taken by the Federal Government to tackle the growing power challenges in the country, some manufacturing firms might go under due to high cost of production.

Managing Director of May & Baker Nigeria Plc, Nnamdi Okafor, who raised the fear during a media chart with Industry Correspondents in Lagos, urged the government to quickly address the plight of manufacturers in the country to stem the tide of seeming industrial collapse.

Disclosing that his company is currently producing below its normal capacity, he noted that with high foreign exchange, harsh economic policy as well as stifling industrial environment, there is high possibility of some industrial concerns going under, warning of the dangers of such a scenario.

“Businesses in the country are presently going through trying times with a sizeable number of them producing far below installed capacity. We are faced with the exchange rate crash, poor power supply and inadequate infrastructure. These challenges are no doubt bedeviling the smooth and profitable operations of the manufacturing companies in the country”, he stated.

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According to his statement, ”our factory in Ota, Ogun state has been working far below installed capacity due to shortfall in gas supply to the factory and with the kind of business we operate, it will be pretty difficult to break even in this kind of situation, given the present economic realities on ground.’

Okafor therefore argued that it would be very difficult to source foreign exchange at the unofficial market and use it to run a healthcare company like May and Baker; saying that such cost would be passed on to consumers, which is not ideal.

He however noted that any increase in the price of its products would make it unfavourable for the consumers, saying ”if you increase your price, people cannot afford it. So we don’t want to do that, instead we are trying to look inwards to see how we can absorb some of these costs and provide quality and affordable medicines, food and beverages to those who need them.

“I believe that whatever earnings we have as a country, if properly channeled would address some of these challenges. You know that we have always talked about government doing its own part, as we need to have access majorly to foreign exchange (forex) and we need to have access to power. With all these, we should be able to add value to the economy and create jobs to the teeming Nigerian youths”, he added.