Shoe manufacturing company, Footwear and Accessories Manufacturing and Distribution PLC (FAMAD), formerly known as Bata, has lamented the rising cost of sales over the last few years, describing development as significantly higher than returns.

It, therefore, urged the government to adopt a more people-centred approach and increase production, emphasising that the country has abundant raw materials lying idle and wasted.

The assertion was made during the company’s 45th–59th Annual General Meeting (AGM) yesterday in Lagos.

During the presentation of its financial statement, FAMAD highlighted that from 2007 to 2021, the major challenge encountered was the importation of poor-quality and fairly-used shoes gaining entrance from China and other European countries, which had created intense and insurmountable competition for the company.

The Board Chairman, Pastor Ituah Ighodalo, who acknowledged the financial difficulties the company has faced over the years, stated that it had remained steadfast and committed to producing quality shoes for the market.

He noted that the company has diligently updated and upgraded its machinery while expanding its range of school shoe designs.

Ighodalo said: “With God on our side, we are gradually recovering our lost markets, which had become elusive due to the challenges we faced in the past. Today, I can confidently tell you that we have the Standards Organisation of Nigeria (SON) certification on all our school shoes. The future looks brighter as we prioritise technology.

“To cushion the effects of low patronage during off-season periods for school shoes, we have mastered the art of diversifying. In addition to institutional shoes like boots and safety shoes, we have started creating a line for men’s formal footwear. The market response has been increasingly positive.”

The chairman also disclosed that the company, aware of the rising foreign exchange rates due to the heavy reliance on imported materials, is collaborating with a local producer to manufacture their soles, and has Imported its moulds for the soles, owning them 100 per cent.

He added: “We are currently constrained to purchase from importers, and this significantly affects our production costs. However, this new development will give us exclusivity in producing lightweight and highly durable soles, well-suited to our weather conditions.”

A shareholder, Ahmed Oluwatosin, expressed satisfaction with the company’s leadership, noting their impressive performance since he joined the organisation 10 years ago.

He encouraged the Board Chairman and his team to follow through on their plans to reawake and elevate the company to greater heights.