İstanbul escort bayan sivas escort samsun escort bayan sakarya escort Muğla escort Mersin escort Escort malatya Escort konya Kocaeli Escort Kayseri Escort izmir escort bayan hatay bayan escort antep Escort bayan eskişehir escort bayan erzurum escort bayan elazığ escort diyarbakır escort escort bayan Çanakkale Bursa Escort bayan Balıkesir escort aydın Escort Antalya Escort ankara bayan escort Adana Escort bayan

12.2 C
New York

Economic Hardship Drives the Closure of More Than 50 Firms

Published:

Firms in the chemical and non-metallic products sub-sector of Nigeria’s economy are facing a critical situation.

The affected firms include multinational corporations, small and medium-sized enterprises (SMEs) and businesses, and member companies.

As a result, more than 50 companies have either exited the market or are on the brink of closure.

Some are still struggling to operate at minimal capacity.

Also, the Chemical and Non-metallic Products Employers Federation (CANMPEF) once had a membership strength of over 100 firms.

These firms collectively employ about 350,000 people nationwide.

Vanguard investigated this and discovered that over 50 such companies are caught in the web of struggles.

It noted that four of such firms are near closure while the remaining 80% operate at low capacity.

The investigations also showed that over 100,000 workers had lost their jobs directly and indirectly in the past year.

Companies in this affected sector mainly produce cosmetics, soaps, medical supplies, pharmaceuticals, vegetable oil, hydraulics, detergents, cement, and concrete.

Others are manufacturers of glass, earthenware, basic industrial organic and inorganic chemicals, explosives, footwear, rubber goods, and fertilizers.

Companies that have closed down include GlaxoSmithKline Beecham, Procter & Gamble, Twinstar Nigeria Limited, Femina Hygienical Products Nigeria Limited, and Mega Plastic Nigeria Limited.

Likewise, Unilever, PZ Industries, Prime Pack, Reckitt & Benckiser, and Kimberly-Clark are all nearing closure.

These firms are leaving due to high energy and raw materials costs and declining customer demand.

Government Policies, Responsible for Exit of Firms, Says Mr. Oke

The Executive Secretary of CANMPE, Mr. Olorunfemi Oke, expressed concerns about the state of the sector.

He described the closure of these firms as painful and added that they mostly faced difficulties because of government policies.

Furthermore, he identified some issues affecting the sector, including currency depreciation and volatile exchange rates.

Other significant challenges include the removal of fuel subsidies, unreliable power supply, and recent electricity tariff hikes.

Finally, he highlighted poor road infrastructure, multiple taxations, an inflation rate exceeding 34 percent, weak consumer purchasing power, and insecurity as other impacting factors.

Other interesting stories to read

Sweden Police Closes Investigation On Eurovision Singer

Plymouth Head Coach Rooney Issues Warning After Heavy Opening Day Loss

Peter Okoye Replies to Paul’s Claims on Band Success

Related articles

Recent articles

spot_img