(5 minutes read)
· The manufacturing companies in Nigeria are facing numerous difficulties on account of the Covid-19 pandemic, according to President of Manufacturers Association of Nigeria (MAN) Engineer Mansur Ahmed
· The lockdown, which stretched over 8 weeks forced manufacturing companies to pull down their shutters and significantly lowered their capacities for the good part of the Q2
· This had considerably affected the factory output and employment
The manufacturing companies in Nigeria are facing numerous difficulties on account of the Covid-19 pandemic, according to President of Manufacturers Association of Nigeria (MAN) Engineer Mansur Ahmed.
The lockdown, which stretched over 8 weeks forced manufacturing companies to pull down their shutters and significantly lowered their capacities for the good part of the Q2. This had considerably affected the factory output and employment. After resuming operations, manufacturing units are faced with numerous problems, particularly in sourcing raw materials and border closures. There is also uncertainty regarding foreign exchange and its impact on cost of importation. There is also wide spread smuggling between the countries because of the closure of borders.
There are some manufacturing units, which have succeeded in sourcing the raw material locally. Those who cannot do so, especially companies dependant on imports from countries like China have to close down their operation incurring huge losses. There is also uncertainty as to when these units would start functioning normally.
The manufacturing companies also will have to rethink about their supply chains. Social distancing and minimal physical contacts etc as restrictions would considerably impair business activities, particularly haulage of goods and services.
Some of the manufacturers feel that there are increased risks from higher prices. A confectionery manufacturer said that the prices have increased for raw materials phenomenally. For instance, a one kilogram of Dangote granulated sugar was available for N250 before the lock-down, which now costs between N 800 and N 900. Te reluctance on the part of agro -processing companies to source their raw materials from farmers would also adversely affect the rural side, where the perishable produces tend to accumulate. The glut in the market will depress the prices of the goods forcing farmers to sell their produces at throw away prices.
