From: Laide Raheem, Abeokuta
Epileptic power supply, high cost of transportation as well as exorbitant price of raw materials, have been identified as the major factors militating against local manufacturing in Nigeria.
Managing Director of Rite Foods Limited, Mr. Seleem Adegunwa, stated this while speaking with journalists, shortly after the inauguration of the company’s ultra modern factory in Ososa, in Odogbolu Local Government Area of Ogun State.
The factory was inaugurated by Acting President Yemi Osinbajo.
According to him, if the power issue, particularly, could be addressed by the Federal Government, local manufacturers would have solved 65 percent of problems facing them. Adegunwa therefore urged the President Muhammadu Buhari-led administration to focus on what he termed “this all important sector”.
Adegunwa, who equally bemoaned high transportation cost in the country due to bad roads and cost of fuel, said the company was running on generators as it was currently not connected to the national grid.
The expenses on power generation, he added, had eaten into the company’s bottom line, thus affecting its profit making.
He however said the company had continued to compete favourably in terms of product quality despite the the economic challenge facing the country.
“We have provided employment to over 1000 people directly and innumerable number indirectly.
“Since the company berthed in this community, it has brought unprecedented economic growth to the area, and has also reduced crime rate.” Adegunwa submitted.
Earlier, the Acting President, had allayed the fear of manufacturers on stable power supply, promising that the Federal Government was working at resolving the nagging issue of power.
He, however, commended the management of the company for producing world class products with locally sourced materials that could compete globally.