The Manufacturer’s Association of Nigeria (MAN) has disclosed that manufacturers are using the last batch of their raw materials now, saying that re-stocking the inputs may be difficult and ultimately lead to many entities closing shops.
The Acting Director- General of the association, Ambrose Oruche told Daily Trust that manufacturers in the country relied mainly on raw materials from China, India and other countries.
“If there are no raw materials to produce, there is no other option than for manufacturing firms to shut down, forcing unemployment to increase because workers will be sacked and means of livelihood will be lost, government will lose another source of revenue since tax will not be paid,” he said.
To avert such ugly situation, he called on the federal government to give incentives for people to venture into manufacturing as well as partner the private sector to produce local raw materials.
Citing an instance of the pharmaceutical industry, Onuche said manufacturers of pharmaceutical products import their major/active ingredients called API from China and India who produce in a commercial quantity that others buy from other parts of the world.
He stressed that though the Central Bank of Nigeria (CBN) had called on pharmaceutical manufacturers to start working on how to locally produce API, it requires some time as researchers will work on it.