Why prices of goods are on the increase in Nigeria – Manufacturers

Nigerian manufacturers said the high cost of diesel is why the prices of goods are high in Nigeria.

The Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, disclosed this when reacting to the surge in the cost of goods in Nigeria.

He noted that diesel gulps 80 per cent of manufacturers’ profits in Nigeria.

He blamed the high cost of production for the surge in the prices of goods nationwide.

According to him: “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. Nigerians should not blame local manufacturers for increasing the cost of goods because they are being confronted with debilitating conditions.

“Do you know that diesel is taking 80 per cent of the profit of surviving manufacturing firms in Nigeria at about N1,700? Which manufacturer can cope with that astronomical price for producing energy, 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 a profit?”

Ajayi-Kadir, however, said the diesel price reduction following the commencement of diesel sales by the Dangote refinery is a huge relief to manufacturers.

DAILY POST recalls that Aliko Dangote, the owner of Dangote Refinery, said the entrance of its product into Nigeria’s market has led to a drop in price from N1700 per litre to N1,200.

Meanwhile, the March inflation figure further soared to 33.20 per cent from 31.70 per cent in February.