The Manufacturers Association of Nigeria has warned that a shutdown of manufacturing activities is imminent if nothing is done to address the rising cost of energy engulfing the sector.
According to a statement by the Director-General of the association, Segun Ajayi-Kadiri, over time, the manufacturing sector has faced numerous challenges which have reduced the number of industries in Nigeria and converted industries in many parts of the country to warehouses of imported goods and event centers.
MAN also asked for a policy that would urgently allow companies and airlines to import diesel and aviation fuel respectively from the Republic of Niger and Chad. Saying that opening up border posts in that axis for this purpose, the effect of high diesel and aviation fuel prices would be cushioned on the economy.
The association also called for help in saving the remaining manufacturing companies from closing down as a result of challenges arising from the inadequate electricity supply, inaccessible foreign exchange, and a rise in the cost of diesel.
There are uncertainties and fear of survival of firms, and expressed fear of a force majeure over increasing diesel prices by 200 per cent.
Findings show that diesel, which was sold at N266/litre as of October 2021, has recently increased to above N800/litre, which is above 200 per cent.
How much did you buy diesel last ? and where