Small and Medium Scale Manufacturers in Edo State have decried the persistent hike in the prices of raw materials used in the production of some finished goods in the state.
Some of the manufacturers, who spoke with The Tide in separate interviews, in Benin yesterday, attributed the hike to the high cost of foreign exchange and low supply of raw materials.
They said that the hike in prices of production materials had caused increases in their cost of production, reduced output, increased prices of finished goods, as well as reduced patronage.
The Managing Director, IDDN Reliance International, manufacturers of polythene and polyester products, Mr Marshal Izebhijie, said that the price of Nylon bags had increased in the country due to high cost of raw materials.
“Our major raw materials are imported from South Korea and Saudi Arabia, and the supply of these raw materials have reduced due to restrictions of movement occasioned by the COVID-19 pandemic.
“We used to get some of these materials from Eleme Petrochemicals, but the company has shut down and we now resort to importation.
“A raw material called SK that we were buying for N25,000 before the outbreak of COVID-19 is now sold for between N35,000 to N40,000, while a bag of small Nylon bags we were selling for N12,000 before the COVID-19 lockdown now sells for N15,000.
“We are just trying to manage the business and satisfy our customers, because we are not enjoying patronage”, Izebhijie said.
Another manufacturer, Mr Benedict Onaiwu, Managing Director, Interior Components Ltd, said that the persistent hike in prices of materials used to make furniture was discouraging local production.
“The price of foam has gone up like four times this year, a sheet of lumber that we used to buy for N3,500 six months ago is now selling for N4,500, while Iron that was sold for N1,300 is now N2,400.
“The high prices of materials has led to high cost of production, which is affecting local production of furniture. Some of our clients now prefer to buy cheap imported furniture that is not durable and this is affecting our sales”, Onaiwu said.
In a related development, the Managing Director, SellWill Nigeria Enterprise, manufacturers of bar soaps in Edo, Mr Wilfred Isele, said that the persistent hike in the price of red oil had led to high cost of soap production.
“The problem soap manufacturers are currently facing in the country is that the demand for red oil, a major ingredient for soap production, is more than its supply in the country. We want the government to open the borders so that the supply of red oil into the country can increase and the price will reduce.
“The price of red oil has continued to increase with about N5,000 to N10,000 every week, since the past six months. A drum of red Oil that sold for between N85,000 to N90,000 six months ago, now sells for between N180,000 to N200,000.
“We have to reduce the sizes of our bar soaps and increase the price a little so we can remain in business,” Isele said..
Isele called for more investments in oil palm production in the country, as a long term measure to increase the supply of red oil for domestic use.
4,000 Flights, 250,000 Passengers Patronise Chinua Achebe Airport In 23 Months
No fewer than 250,000 passengers have passed through the Chinua Achebe Airport, formerly Anambra Passenger and Cargo Airport, Umueri, since it was inaugurated for commercial operations in Dec. 2021.
Martins Nwafor, Managing Director of Chinua Achebe Airport, said this in an interview with The Tide’s source, yesterday..
Nwafor said about 4,000 airlifts had passed through the airport with an average of six flights per day.
He said the first four months had low activity as it was the route building period.
He said the airport had two major flight operators using the airport on full scheduled commercial operations with a number of private operators.
The Managing Director said the Chinua Achebe Airport was ready for increased traffic during the Yuletide season, saying that services would be both day and night.
Nwafor said compared with the peers of the airport and considering how young it was in the industry, the airport was faring badly
“We started operations here on Dec. 7, 2021, that is about one year and 11 months and so far, we have had 4,000 flights with about 250,000 passengers passing through this airport.
“We are still working to improve our services, we hope that passengers will increase and that will lead to more airline companies coming down here.
“The Chinua Achebe Airport is ready for the yuletide, our services will be available for both day and night operations and we have about 76 airport taxi operators who have been screened by the DSS, so safety of passengers is guaranteed,” he said.
Nwafor said air transport remained the most economical way to travel considering the safety, speed and comfort it gives to passenger
According to him, air transport is not elitist, when you consider the condition of our roads, the safety environment and how they affect businesses negatively, you will realise that additional cost to travel by air is far less than its numerous benefits,” he said.
AfDB To Accelerate Inclusive Growth, Africa’s Sustainable Dev
The African Development Bank (AfDB) Group has launched programmes to enhance institutional capacity for effective macro-economic and public policy management to accelerate inclusive growth, sustainable development and achievement of the Agenda 2063.
The tailored programme is part of the bank’s implementation activities of its capacity development strategy as well as its commitment to strengthening Africa’s capacity for effective macro-economic governance, policy-making and implementation.
Chief Economist and Vice President, Economic Governance and Knowledge Management, African Development Bank Group, Prof. Kevin Chika Urama, disclosed this at the launch of the Benchmark Macroeconomic Models for Effective Policy Management in Africa Report at Addis Ababa, Ethiopia, at the weekend.
He said the report is a product of collaboration between the AfDB, the African Development Institute and the African Economic Research Consortium (AERC) as an implementation activity of the Bank’s Capacity Development Strategy approved by the AfDB Group Board of Directors in 2021.
According to him, this report provides an inventory of existing models and modeling capacity in African countries based on an Africa-wide survey implemented by the Bank Group.
He said it also examines the relevance of the existing models to African development realities in the face of recurrent and dynamic challenges, considering the significant heterogeneity in economic structures across the 54 African countries.
Urama said another key implementation programme of the Capacity Development Strategy is the Executive Training Programme on Macro-Economic Policy Management in Africa (MEMA).
He said the study that informed the report was commissioned to better understand the existing macro-economic modelling capabilities and tools in all African countries to inform the curriculum and capacity development programmes of MEMA that address the capacity development needs of countries.
Urama explained that macroeconomic models provide the tools for countries to effectively understand and predict the behaviour of their economies, analyse policy response options, evaluate possible outcomes, and guide their implementation, monitoring and evaluation.
He said the models are only attempts to simplify realities logically to inform decision-making under specific assumptions, contexts and realities.
Urama said the models are therefore as relevant as the extent to which they approximate realities and can inform appropriate decision-making in specific contexts.
“In the face of increased global uncertainties, particularly the challenges posed by the Covid-19 pandemic, climate change and other challenges that continue to inflict blows on African economies, it is important for policymakers to undertake policy decisions with a clearer and better understanding of their economic environment and anticipation of what the impact of their policy options would be on inclusive growth and sustainable development”, he stated.
He said, although there have been positive strides in macroeconomic management on the continent, macroeconomic modelling capacity in Africa has remained low, as some countries continue to rely on simple models, which do not capture the complex intricacies and realities of the operation of their economies in a globalised world.
N1bn Grant: Ogun Empowers Small Businesses
The Ogun State Government has commenced the second phase of the disbursement of the N1 billion grant to micro and small enterprises.
The initiative aims to alleviate poverty and mitigate the impact of COVID-19 on businesses in the state.
The Commissioner for Industry, Trade, and Investment and a member of the Ogun State COVID-19 Action Recovery and Economic Stimulus Steering Committee, Mr. Adebola Sofela, in a statement on Monday, announced that Governor Dapo Abiodun has directed the immediate commencement of the disbursement process for the second phase of the grants.
According to the statement, in the first batch, over N120 million was disbursed by the state government to more than 1,000 micro and small entrepreneurs across the 20 local government areas of the state.
The statement said Micro & Small Enterprises in the Retail, Fashion, Hair & Beauty, Light Manufacturing and Hospitality are eligible to apply for the grant which government has started disbursing
Reports say the move is aimed at driving the economy through small businesses in line with the millennium sustainable development goals.
Entrepreneurs by the information are expected to apply to avoid late entry regrets on the side of the small businesses.
Niger Delta5 days ago
‘Pneumonia, Malaria, Diarrhea, Major Causes Of Infant Mortality’
Social/Kiddies5 days ago
‘Skills Acquisition, Key To Youth Empowerment’
Niger Delta2 days ago
NUPRC Boss, Fashola Bag Honorary Degrees In UNIBEN
Business2 days ago
We’ve Robust PMS Supply To Last Beyond Yuletide-Kyari
News5 days ago
DISCOs’ Operating Licences Expired In October -Reps
Business5 days ago
UK Pledges More Investments In Nigeria
Features2 days ago
An Open Letter To FCT Minister, Chief Nyesom Wike
Nation2 days ago
Fubara Assures On Firmness In State Development … Dental Maxillofacial, Prof. Kelsey Harrison Hospitals Open