Source: Business Day

By Harrington Harmon

This development has made Nigerian products uncompetitive in the local and international market, says Sam Ohuabunwa, president, Nigeria Economic Summit Group (NESG) and chairman, Manufacturers Association Nigeria, Ikeja chapter.

He disclosed in an interview with Business Day that compared to other developing countries such as China, India, and Brazil, Nigerian manufacturers spend far more to manufacture goods due to the high cost of production.

He attributed the high cost of production to the fact that Nigerian producers generate much of the power needed to run their plants and other equipment and build their own water system to meet their need for water. He further said that most factory owners in the country hire their own security personnel, and in some circumstances build their own roads. He further stated that manufacturers are inundated with multiple taxation, at the local, state and federal levels, coupled with illegal ones and inbuilt corruption in the system.

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Posted by pichu at May 15, 2007 5:52 PM