Segun Ajayi-Kadir, the Director General of the Manufacturers Association of Nigeria, has disclosed that the high cost of diesel is why the prices of goods are high in Nigeria.
According to him, diesel gulps 80 per cent of manufacturersโ profits in Nigeria.
He blamed the high cost of production for the surge in the prices of goods nationwide.
According to him: โWe 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.
โDo 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 wonโt expect him to increase his products in the country?
โAlso, 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?โ
Ajayi-Kadir, however, said the diesel price reduction following the commencement of diesel sales by the Dangote refinery is a huge relief to manufacturers.
