As the rising cost of diesel alongside poor electricity supply and lingering foreign exchange challenges takes a toll on the manufacturing sector, operators have raised the alarm about imminent collapse of the productive sector, if the government does not provide any form of intervention.
The association identified key challenges confronting the sector as a high operating cost environment occasioned largely by inadequate electricity supply and the high cost of alternative sources, excessive regulation and taxation, and inadequate supply of foreign exchange for importation of raw materials, spare parts and machinery that are locally available.
Other demands include issuance of licences to manufacturing concerns and operators in the Aviation industry to import diesel and aviation fuel directly to avert the avoidable monumental paralysis of manufacturing activities arising from total shut down of production operations and movement of persons for business activities, and addressing the challenge of repeated collapse of the national grid , which is causing acute electricity shortage in the country, especially for manufacturers.
No doubt, he said that the recent short supply and over 200 per cent increase in the price of AGO are part of the backlashes from the ongoing invasion of Ukraine by Russia.