• If the dollar gets to N2000, the bottom of the economy would fall off
By Sabinus Onyenwe, Owerri
The numerous small and medium enterprises (SMEs) in Nigeria may be wiped out, and the Manufacturers Association of Nigeria (MAN) has raised the alarm.
Details:
Tough times and fear have gripped the Small and Medium Enterprises (SMEs’) sector in the country due to the continued closure of factories on account of the harsh operating environment, and if nothing is done to ameliorate the situation, the sector will finally collapse, Uba Obasi, chairman of MAN, Imo/Abia branch, has cried out.
Obasi has blamed the federal government for the tough times the sector is passing through, even describing the Nigerian manufacturing environment as well as business conditions as obnoxious, unhealthy, unattractive, and very harmful to the growth of businesses in the country.
In a telephone conversation, Obasi, the managing director of Akachi Industries Limited, Geepee Group and chairman, Manufacturers Association of Nigeria (MAN), Imo/Abia branch decried the speedy rate at which factories are closing shop due to government unhealthy business environment.
He noted that the SME sector is feeling much pains operating in Nigeria’s economy.
This is as he also stated that the multinational companies are leaving the country, because they have seen that the purchasing power of many Nigerians is low now. And as such, the masses cannot buy those goods produced by the multinational manufacturing firms, that if they produce , at the end of the day, they cannot make profits.
“According to him, the SMEs are already collapsing and businesses in the country are closing on daily basis “. He added that what is happening to the SMEs sector is not encouraging.
Obasi bemoaned the prevailing inflation in the country, saying that “everything you are importing to run your factory is tied to the dollar, your raw materials are tied to the dollar, now, the rate is over N1,700 per dollar, if it gets to N2,000 per dollar , that is the end of everything”, the sector will collapse.
He advised that government should not believe and behave that all is well in a country that is economically sinking. He called for reasonable plan of action to strengthen the naira-dollar rate.
Obasi, a seasoned entrepreneur, said that lack of access to funding has been a torn on the flesh of the manufacturers, urging the federal government to hasten up in whatever it wants to do, to ensuring easy access to funding so as to inject life in the SMEs sector.
“Even now, the funding that is also provided by the federal government is with conditions attached to it. If you want to give manufacturers grant or loan, those of them that have many workers and some have up to 100 workers and have stayed for about 40 years in business, why do you yet ask for collateral, are they going to run away with your money?”.
“Again, you want to give them money and the Bank of Industry (BoI) is asking for guarantee, the federal government should guarantee the money and then BoI should disburse it to the manufacturers. That is the best way and the best thing to do.
“You cannot say that you are giving them money and you give them the conditions that a lot of them cannot meet. If they have access to, and they have funds that they can be able to use, they cannot need your loan”, he said.
$$