#Featured #News

Manufacturers fueling economic crisis – Stakeholders

By Fatima Muraina


Amidst biting economic crisis occasioned by removal of fuel subsidy and forex crisis, stakeholders have cautioned some manufacturers in the country of exploiting the situation to sell their products at unjustifiable prices.

Due to persistent high cost of production, some manufacturers in the country ha been discovered exploiting the situation to milk customers dry, and further compounding the economic situation in the nation.

In recent time, the costs of goods and services had skyrocketed with its negative impacts on the citizens.

There have been protests across the country with the citizens ventilating their anger over the continued food shortage in the country.

Speaking on the development, stakeholders appealed to manufacturers to be considerate with the masses, saying that they should not capitalise on the current situation to hike their prices unjustifiably.

They particularly challenged the Federal Government to urgently intervene to curb the adverse effects of the general prices hike, warning that persistent hike in prices of commodities might lead to hyper poverty and worsen security problems in the country.

An Economist and Management Consultant based in Akure, Elder Fessy Olabode said the general prices increment by manufacturers is negatively affecting the purchasing power of the masses, as money is not available anywhere .

“The implication is that the purchasing power is negative because people have no money to buy those commodities, and unfortunately people will only buy what they can afford,” he said.

Olabode expressed the need to pump money into circulation for people to reposition what to buy, what they want.

Related News  APC primary election: Ondo NSCDC assures hitch-free exercise

He called on Government to do something strategical to ensure that the economy improves, pointing particularly to strengthening the security of farms .

“Government has to work on security architecture for the people to be free to go to farm and do what they are supposed to do. The situation we are in is leading to hyper poverty which may lead some depressed people to commit suicide,” he declared.

The State Chairman of Nigeria Association of Small Scale Industrialists, NASSI, Great Seyin Akintunde said, “the truth is that everything is getting higher and higher because the dollar has increased. You cannot buy at high dollar rate and come over here and sell at low price.

” We must work towards stabilizing the dollar in the first instance and so on. Even if every other thing is increased the manufacturers will also increase their products so that they can meet with the economic demands of the nation as at now.

“Definitely there is going to be an adverse effect of this on the populace. Presently everybody is crying that no money because of the hike in everything.”

The State Manager for SMEDAN, Prince Tomi Ikuomola, observed the situation as a global phenomenon but added that Nigerian government is trying to address it with various strategies.

Among these, he mentioned the wage committee set up to review wage which will contribute to the major workforce in the nation apart from the SMEs.

He explained that If wages of workers are increased, it will go a long way to reduce the hardship.

Related News  ODSG moves to end open defecation

This, notwithstanding, Ikuomola appealed to manufacturers to be considerate with the masses, saying that It is not every opportunity that they will use to hike prices.

” There are some things that they can use to adjust and still be able to deliver quality products across to the masses for them to benefit”, he stated.

He urged the Government and manufacturers to meet at a midway and arrive at a good leverage so that the masses will not lose out and the manufacturers too will not crash out of business .

He said there was need for the regulatory bodies like the Consumer Protection Council to regulate market prices, quality and the rest.

” We are supposed to be reporting such cases to Consumer Protection Council. Secondly, by the time you call on government to put a price policy mechanism in place as much as they cannot control the dollar, that is what manufacturers and producers will be claiming that if government cannot regulate exchange rates they should regulate their production prices and cost prices.

“Ordinarily, that should be a mechanism that should be put in place. In developed countries, we have this, you can’t just increase prices arbitrarily, there must be a reason and there must be some factors that caused it”, he said.

Also, former state Chairman of Manufacturers Association of Nigeria, MAN, Mr Emmanuel Adewunmi said raw materials are increasing because the economy is now based on dollars.

“The way out is having production and the production too is not there so the situation is interwoven and getting bad.

Manufacturers fueling economic crisis – Stakeholders

ODHA confirms Omowumi Isaac Commissioner-designate

Leave a comment

Your email address will not be published. Required fields are marked *