By Our Correspondent
Most manufacturing outfits in Anambra State have virtually closed down and workers sacked following the harsh economic environment.
At Agu Awka which was once a beehive of activities for manufacturers, most of the companies are under lock and overgrown by weeds.
While many have completely shut down, only a few operate on skeletal basis, even as majority of their workers have been laid off.
Chief Ben Ezeibe, who is chairman of Coopers B V. & Co Ltd, manufacturers of household products said that the country’s economic policies have dealt a devastating blow on local industries.
Ezeibe, who is also an importer said: “Most of us in the private sector are hard hit, and unfortunately we don’t talk. As things are, the country can’t make process unless the right things are done.
“Devaluation of Naira is a serious problem, particularly for those in the private sector who import raw materials. The cost of production is determined by the value of the dollar.
My company manufactures soaps and detergents and most of the raw materials are sourced locally, while about 30% are imported. While we are complaining about the high cost of importing and clearing goods at the ports, prices of local raw materials are also hitting the roof.
“For instance, one truck of palm oil, which we source from Okomu Oil in Edo State is over N50m. Before, it used to be less than N6m. A bottle of palm oil is now about N1000. To produce soap, we also buy other raw materials, like caustic soda.
“After producing the soap, the common man can no longer afford it. Because of the high production cost, we had to down size and many workers were laid off because we cannot even break even, coupled with the fact that consumption is very low.
“We are still managing to do skeletal production, but we have reduced the staff from about 70 to less than 15. We had to do this so as to reduce overhead as we could no longer pay salaries.
“Those of us who borrowed money from the banks can no longer meet the loan agreements and the banks are pushing us around.
“Also, most of the chemicals used in the manufacture of soap are imported and there are other issues like packaging whose cost had gone up.”
He lamented that most of the people who lost their jobs in the various companies have relocated to the villages where they have turned to thieves and armed robbers.
“In the villages, crops can’t even mature before thieves harvest them. Even those we employ as vigilante sometimes join in stealing from those they are supposed to protect”, he said.
