Chicason Group laments lack of raw materials, epileptic power
Chief Okafor
The Chairman/Managing Director, Chicason Group, Nnewi , in Anambra state, Chief Chika Okafor, has lamented that the harsh economic condition in Nigeria is causing serious adverse effects on industries, especially with the difficulties in sourcing industrial raw materials and high cost of power among others.
Okafor who fielded questions from newsmen at his company premises Nnewi, Wednesday, disclosed that many companies including the Chicason Group, were now struggling for survival under the current dwindling economy, adding that the company now operates below capacity due to unavailability of raw materials. The industrialist also said that lack of foreign exchange has limited their purchasing power, especially in manufacturing products like engine oil, toiletries, and several others.
He called on the federal government to come to the aid of industrialists through the provision of foreign exchange, and find ways to tackle the perennial problem of power in the country.
“Power generation, lack of raw materials, foreign exchange are some of the teething problems facing the survival of industries in Nigeria.
“Government should give support to manufacturers here in Nnewi. This is the only town that has grown to what it is today with 99 percent contribution from indigenes, and almost nothing from government,” he noted.
He stressed that companies now face several challenges every day, insisting that the most pressing ones are power and foreign exchange for the procurement of raw materials, saying his factory runs 175,000 litres of diesel every week here.
“We are managing to sustain the factory from what we make from other businesses. We have a mining arm, agriculture, real estate and we are also into oil and gas,” he added.
Okafor disclosed that at the last management meeting, the company realised the need to retrench about 200 staff due to low output.
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5 Comments
The same stories across the business sector of Nigeria. every one needs special forex, power and funding to operate their business. However Nigeria businesses need to understand that we have a government that is not willing or able to solve their problem. Those problems needs to be solve by the businesses. They need to turn a problem into a profitable business.
what is stopping this company from banding together with other companies in the area and installing a 1000 to 10000 bpd to supply them with the diesel needed. They can then sell any excess product they have to the public to generate income to repay the invest and generate revenue. a small modular refinery can produce kerosene, jet fuel, diesel and other product. Turn your problem into a profitable business, while solving your issue.
Nothing except shock, some of us knew the incoming administration is daft, but we never knew they will be this daft! Projects like you suggest are long term, now most corporations have been ambushed by the deliberate misgovernance, coming out, surviving till this storm is over is what many are strategising for!!
Government will not permit you to be self-reliant.
Try fixing your road and see what they would do to you.
The company owner did not state the raw materials he needed to import and on which he required forex. Some companies were importing water and sand! Please collaborate with local universities and research institutes to develop your raw materials. That’s how to boost self-reliance, less dependence on forex in an economy.
Stop being dumb:
The industrialist also said that lack of foreign exchange has limited their purchasing power, especially in manufacturing products like engine oil, toiletries, and several others.
We will review and take appropriate action.