Most manufacturing firms, especially, Small and Medium Enterprises(SMEs) will be forced to shutdown or relocate outside Nigeria based on prevailing harsh business environment.
This is taking place barely eight years when over 50 firms, including Dunlop and Michelin tyres manufacturing firms relocated outside and converted Nigeria only into sales markets after manufacturing their products outside the country, thereby, creating jobs for millions outside at the detriment of many jobless Nigerians.
Citing their inaffordability of the new increment of fuel to power their generators, coupled with the over 40% hike on energy for running of daybyday business, as reason for planned shutdown, they said, the plan to bring in more investors by President BAT would be mirage as the harsh business environment will work against new investments.
On his part, the president of the Food Beverage and Tobacco Senior Staff Association, (FOBTOB), Comrade Jimoh Oyibo, claimed that the sector which used to generate over 1.5 million jobs has not only lost over 1,478 jobs and over 10 firms which have closed down over forex, but most firms, especially, SMEs in the sector will be forced out of business as a result.
Findings by NATIONAL ECONOMY showed that, millions may lose jobs because of the new hike as most manufacturing firms that can no longer cope, will either shut down or relocate to other countries. For example small scale bottled water firms, are already contemplating on the next line of action to take.
They claimed that the hike, which will be barely three weeks after hike in transportation, sharp increment in prices of food and others, based on subsidy removal, will further push most Nigerians into unbearable state and into poverty.
On his own, Dr Innocent Ihennacho Ogbonna, described the planned hike as sign of insensitivity of government towards the masses who he said have already been pushed to the wall with the current hardship in the country.
According to Ogbonna, “Already, many manufacturing firms are not finding it easy. They have to face self-generation of light, but with hike price of fuel, then ordinary Nigerians will have to go back into use of fire wood and lantern, moreover manufacturing firms will find it hard to cope and be forced to shut down.
“The new tariff increment is sign of day light robbery. It is sign that they only there to oppress because the common man has nowhere to run to for justice as law courts which used to be the last resort of the common man has been policised. How many cases have SERAP won after taking federal government to court?”
On his own part, the president of One Nigeria Empowerment Initiative (ONEI), Comrade Onwumere John described the planned increase as something that would make many businesses to shut down and throw workers into labour market.
According to Onwumere, “By this, our country leadership are showing that they are not there to make life better for the masses. Let them remember that the poor people are no longer cooking food because they cannot afford to pay for a litre of kerosene. President Tinubu should help with policies that can favour the poor people in the country for God’s sake rather than squeezing their necks with hard policies.”
On his own, the director general, MAN, Mr Segun Ajayi-Kadir, lamented that, members of the association have only been surviving to stay in business will be forced to take hard decision of either to shut down or relocate outside.
Pointing out that MAN members spent above N144.5billion on alternative energy in 2022, Kadir stressed that “surveyed data by MAN suggests that manufacturers spent at least N144.5billion on sourcing alternative energy in 2022, up from N77.22billion in 2021.
“This translates to about 87 per cent increase in the cost of access to alternative energy sources by manufacturers within a year. In the last eight years, electricity tariff has been increased by 186 per cent. The fact that Government itself is owing N75billion in unpaid electricity bill is indicative of how burdensome the cost of electricity has become.”
