Industrialists lament N2billion daily loss over border closure

Industrialists lament N2billion daily loss over border closure

- The border closure by the federal government continues to generate reactions across the country

- While some are hailing the move, others are criticising the move of the government

- Some industrialists in the country have highlighted how the action has affected their businesses

A report by Daily Sun indicates that local manufacturers in Nigeria are losing over N2 billion daily since the federal government shut the border with its neighbours.

According to the report, the manufacturers are claiming to have suffered huge losses and incurred major lapses in financial transactions.

They also claimed that production lines are shutting down and workers are being laid off due to the government's action.

The inability of some of the manufacturers to meet up with the orders in the Letter of Credit (LC) from foreign partners has put them in trouble as they have failed to comply with ECOWAS protocols, owing to the border closure.

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As a result of this, some companies are reportedly finding it difficult to service the loans they secured to import some consumable goods and raw materials, which they say has adversely affected their business.

Sources within the Manufacturers Association of Nigeria (MAN) say goods meant for the ECOWAS sub-region and trans-Sahara African markets had been prevented from leaving the country through the land borders.

Some locally manufactured goods are produced mainly for export, and as such, 80% of the revenue bases of such people are from export materials.

Already, there are reports that some perishable goods stocked in some warehouses are now spoiled, expired or damaged due to heat.

Some companies are also now unable to bring in raw materials already paid for, which were purchased from neighbouring countries, for local production.

Another source from MAN also lamented the situation, saying members of the association had been affected. While advising the government to arrest the importers of illegitimate goods in order to allow legal trade to flourish.

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MAN pleaded with the government to relax its decision and allow manufacturers to bring in their raw materials, lamenting that the border had impacted negatively on individuals who were into legitimate trade and improving the nation’s economy.

“It is an unfortunate situation. We don’t know how long this will remain in force, so we can’t continue to keep our workers. They are our staff and they understand why we are asking them to go home. If things get better, we will call them back, but for now, that is the situation,” a manufacturer quoted in the report said.

Another said: “Is it the closure of borders that will solve Nigeria’s problems? I will say no because what is happening is that people are still crossing and goods are still finding their ways into the country and those that are doing legitimate business are the ones suffering.”

Meanwhile, a recent report indicates that Nigerians may buy a 50kg bag of rice for as high as N50,000 in December 2019 if the land borders remain shut.

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Already, the price of rice by 86% to an all-time high of N27,000 per 50kg from N14,500, an indication that local rice farmers do not currently have the capacity to meet local demand. ( -> Same great journalism, upgraded for better service!

Border Closure: Traders lament unbelievable price hike of foodstuff in the market| Legit TV


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