LIVE UPDATES
The Manufacturers of Nigeria(MAN) has lamented the high cost of automotive gas oil (AGO), also known as diesel, which is used in generating power for operations, noting that product gulps about 80 percent of manufactures profits.
Speaking on the plight of manufacturers against the backdrop of rising prices of their products, the Director General of MAN, Segun Ajayi-Kadir, said manufacturers should not be blamed for inflating prices of products, considering their high cost of production.
Ajayi-Kadir stated that “We have at different fora informed government and relevant agencies of what to do to bring down these inimical worsening high operating costs in the country.
He noted that Nigerians should not blame local manufacturers for increasing the cost of goods because they are confronted with debilitating conditions.
He said, “Do you know that diesel is taking 80 per cent profit of surviving manufacturing firms in Nigeria currently at the rate of about N1,700?
“Which manufacturer can cope with that astronomical price for energy to produce and you won’t expect him to increase his products in the country?
“Also, look at the new Customs exchange rate, new interest rate, scarcity of foreign exchange (FX), NAFDAC ban and others. How do you want to cope in production and make profit?”
“Quite a lot of prices have gone up. When you go to the market, for example, something that we produce locally like flour, people will charge you more. Why? Because they’re paying very high diesel prices. He stated.
