The Paint Manufactures Association (PMA) has said that epileptic supply of electricity has remained the bane of the paint and coating industry in Nigeria. PMA said it is planning strategies to confront the major challenge as a way of developing the industry in Nigeria.
The strategy was revealed recently at the Association’s 30th Annual General Meeting held in Ikeja, Lagos where an overview of the Paint industry was laid before the stakeholders.
In his keynote address, Mr. Chris C. Kiwamu, Managing Consultant/Chairman, Advisory Board of Kirsten Turner Consulting, said that manufacturing sector of which the Paints and CoatingsIndustry is an important subset is very strategic to national development for obvious reasons.
According to him, employment generation, contribution to GDP, revenue to government through corporate and employee/personal taxes etc are the various ways in which the paint industry are very useful to the development of the Nigeria economy.
Kiwamu noted that interest in the Nigerian economy has grown significantly in the last couple of years. “Both local and foreign investors see opportunities to venture into, but each time they are presented with the challenges of infrastructure in the country. Industry experts put the local paint and coating market to worth an estimated N96.50 billion which equals US$268.0 million at an exchange rate of $1 for N360 in this year.
“With a realistic estimated CAGR of 5.0 per cent, the market is projected to grow to N135.80 equivalent to $377.0 million by 2025. This is because, the significant number of unorganized players, estimating production capacity and sales volume are difficult.”
The decorative paint sector comprises of about five big Tier 1 companies with each company’s annual revenue in excess of N2.50 billion an a numerous small and medium scale companies nationwide,”he said.
Earlier in his address, the immediate past Chairman of the Association, Mr. Rotimi Aluko noted that the Association witnessed stiff resistance in business as a result of security challenges in the country.
Age noted that unreliable and epileptic supply of electricity still remained a big problem to reducing to cost of production thereby making the finished product higher than it should be.
The event witnessed the election of Mr. A. S. Babatunde, former Treasurer PMA and Managing Director of Blendtech Ltd as the new Chairman of the Association. In his acceptance speech, he promised to engage all stakeholders in the industry and make efforts to lift the Association to the next level.