Business
Firm Laments Lack Of Govt Patronage
Alind Nigeria Ltd, the
government-owned electricity cables and conductors manufacturing company, in Bauchi, has said that poor patronage by the owners had impacted negatively on its growth and profitability.
The Managing Director of the Company, Dr Ahmad Mai-Abba, made the assertion on Monday in an interview with newsmen in Bauchi.
According to him, Bauchi State after the privatisation of the company in 1995 owns 25.5 per cent of the shares, Gombe State 12.5 per cent, while the investing public controls 62 per cent of the equity.
Mai-Abba said the two states which currently have 42 staff on the company’s payroll, have refused to patronise its products but instead buys similar products from other companies.
“Unfortunately, as I have told you sometimes ago, you will see that in spite of the fact that the place is established by the two states, they have refused to patronise the products of the company.
“There is no reason why there is no patronage by the two governments, if they are sincere; there is no reason why they will go and buy the products of other companies,” Mai-Abba said.
He said that “the two major consumers of similar products happens to be the two state governments, either directly or indirectly.
“Let them be fair to us and patronise their own products, we are not asking them to give us money, but patronage”.
Mai-Abba said the company had resorted to payment of half salary to its staff and deviated from signing of contracts to enable it survive the harsh business situation.
“We have a reasonable business partner; one Indian organisation which is the major importer of copper and aluminium.
“We collect raw materials without signing any agreement, we process, sale and make little margin that has kept us up to this time.
“On the other hand, the individual shareholders are afraid, they are always afraid that as far as the government has a hand in the business, they will not risk their money,” he said.
Mai-Abba also said the inability of other shareholders to inject more funds stemmed from the fear that the company operated like an agency of government.
“The presence of government is scaring away our shareholders though there has been no interference, but there have been negligence on the side of the two governments by not patronising their own products,” he said.
The managing director said the company established in 1980 with Alind of India as technical partners had an installed capacity of 20 kilometres of cables and 20 kilometres of assorted conductors per day.
He asserted that the high capital intensive nature of the industry made it difficult for the company to operate with a little over N3 million working capital.
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