Tackling Rising Cost Of Production

SEVERAL factors are usually responsible for spiral  inflation and rising cost of production in any economy and Nigeria presently troubled by worsening economic problems cannot be immuned from the negative indices associated with rising cost of production.

WITH a  huge wage   increase to the labour force under the guise of  minimum wage, indefinite  border closure, imported raw materials and an inefficient  electricity company, it will be a  miracle  if products can be produced at reasonable cost in our country.

ELSEWHERE,  several incentives are  usually dangled before investors to woo them and to encourage them to take the necessary risks.

SOME of these incentives include low or non taxation for a period, adequate security and  efficient and reliable power supply among others.

IN Nigeria today, prospective investors still contend with woeful power, water supply, large scale insecurity, dearth of basic infrastructure, indefinite  border closure and many other issues.

NIGERIA must exercise strong political will to give premium attention to science through research to unlock the country’s  great potentials to produce basic needs that  can help produce products at reasonable cost.

ELECTRICITY  remains a major albatross for our country in the drive towards industrialisation and production of goods  and services at a reasonable cost.

THE tourism  industry is driven by non stop electricity for facilities and  tourists who are used to undisrupted power supply from their home countries. Many artisans across the country had  been  crippled from their business  due to  lack of electricity to power their business forcing  many to  go into criminality.  Power remains  the backbone of any society and  our country can not be different.

REGRETTABLY power supply  in our country is zero forcing inflation,  prices of  services  to rise as a result of high cost of production.

GOVERNMENT must exude the political will to initiate new policies in agriculture, science, power and industrial sectors to chore up the economy.

THE universities across the country must  be funded and encouraged to throw up researches to find solutions to all problems  associated with importation and rising cost of production with  the sole aim of helping industrialists to produce competitively. Government must not be discouraged in growing small scale industries through soft loans to bring down production cost.

GOVERNMENT must work hand in hand  with manufacturers to promote made-in-Nigeria products, by helping them with low taxation and economic policies that would assist them to create  more jobs in the country.