By Bimbola Oyesola , [email protected]
Members of the Chemical and Non-Metallic Products Employer’s Federation (CANMPEF) have expressed frustration over difficulties in accessing foreign exchange for the purchase of raw material inputs, spare parts and machinery for production.
Speaking at the 43rd Annual General Meeting of the association in Lagos, the president, Chemical and Non-Metallic Products Employer’s Federation, Mr. Devakumar Edwin, said in the year under review access to foreign exchange was extremely difficult.
“Despite the Central Bank of Nigeria’s interventions, operators in the sector groaned under the huge cost of doing business.
“While there exists support for and against the apex bank decision to discontinue the sale of forex to bureau de change operators in the country, fine-tuning the process for improved performance on business should be the ultimate goal,” he said.
Edwin stressed that the unending rise in the cost of energy coupled with poor electricity supply aggravated the hardship under which local players in the industry had to operate, as available data revealed electricity tariffs have tripled between 2015 and 2021.
He added that insurgency and banditry attacks across the country have not helped, but has led to shutting down of factories, robbed young Nigerians of the much needed jobs and further pushed many into extreme poverty.
Devakumar reasoned that to address the ongoing rise of unemployment, government needs to provide incentives to sectors of the economy that has potentials to generate huge employment figures and and they should give more focus to job creation in the nation economic plan and agenda across the tiers of government.
According to him, United Nations has projected Nigeria to be the world third most populous country in 2050, with over 300 million people and with 60% of its population under 50 years.
He stated that in taking proactive actions, government must throw its weight behind agriculture in order to provide raw materials input for industries, manufacturing to produce finished goods for consumption and export, information communication technology to enable process deficiency power and energy sector for effective power-up of industry and house holds as well as education and skills acquisition to improve the income earning potentials of its citizens.
He said, “To increase the nation foreign exchange earning opportunities, all hands must be on deck to reverse the lingering resource course through deliberate value addition agenda into raw materials and natural resources.
“We are urging government to consistently take on bold initiatives in collaboration with the private sector in order to reform the power sector and also the Presidential Power initiative launched in 2019 should be pursued vigorously to ensure timely and successful completion.”
While also addressing the year under review, the Executive Secretary, Mr Femi Oke noted that the country’s economy recovered from a recession fueled by COVID-19 crisis and also an oil price shock which caused the economy to contract by -1.8%.
He emphasised that members of the Federation faced key challenges ranging from skyrocketing cost of transportation, seaport congestion and poor infrastructure, harsh economic environment and escalating insecurity challenges.
“The business operating environment was also less encouraging, as global business environment ranking conducted by The Economist Intelligence Unit, ranked Nigeria 78 over 82,” he said.