Access to FX, Electricity Poses Major Challenge to Cable Firms in Nigeria, says MicCom Boss
- Lack of foreign exchange and electricity are the significant challenges facing cable manufacturers in Nigeria
- Olubukola Adubi, the Chief Operating Officer of MicCom Cable, stated this during an interview
- She called for the legal framework and the right fiscal environment to encourage investment in copper and aluminum mines in the country
The Chief Operating Officer (COO) of MicCom Cables and Wires Limited, Bukola Adubi, has identified access to foreign exchange, electricity, and unfriendly policies on importing raw materials as significant challenges confronting cable manufacturing in Nigeria.
Adubi, who doubles as the President of the Cable Manufacturers Association of Nigeria (CAMAN), made this known in a recent interview.
Source: Getty Images
Cable makers face frustrating situations in Nigeria
With the national grid collapsing about 98 times since 2015, the cost of alternative power sources for sustaining local manufacturing of cable bears heavily on indigenous companies. These challenges are further aggravated by the Federal Government policies on importing raw materials for in-country cable manufacturing. The MicCom chief described the situation as frustrating.
PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!
From huge taxes to excessive import duties on raw materials, cable manufacturers have often decried the bottlenecks faced in importing raw materials as these erode the bottom line.
Adubi emphasized the role of various categories of cables in developing the energy value chain. Calling for measures to guarantee the availability of these essential materials, she proposed zero import duty and access to the official exchange rate to improve the sector's competitiveness.
Adubi said:
"If the cable industry, for instance, was granted some form of waiver or zero duty on raw materials, along with access to the CBN rate for foreign currency exchange, a great part of our challenges would be resolved. That's a deliberate way the government can grow the subsector and ensure that we are internationally competitive because we do not have a rich source of raw materials", the MicCom boss said during a television interview.
Adubi called for the legal framework and right fiscal environment to encourage investment in copper and aluminum mines in the country, noting that sourcing raw materials in the country would help CAMAN member companies to reduce operational costs, increase their production capacity, their reserves, create jobs, and generate more foreign exchange earnings for Nigeria.
Nigeria records growth in patronage of locally made cables
Commending the Federal Government through the Nigerian Content Development and Monitoring Board (NCDMB) for its efforts in ensuring patronage of locally-manufactured cables by the oil and gas industry, Adubi attested that the oil sector had shown significant growth of in-country value addition.
She said:
BusinessDay reports that the MicCom boss further stated that at the moment, only less than five member companies are enjoying the benefits in this space.
Firm applauds SON for destroying substandard cables, goods worth millions of Naira
Legit.ng reported that the Standards Organisation of Nigeria (SON) had destroyed substandard cables and goods running into millions of naira for falling below par.
The agency's action has been applauded by the Chief Operating Officer of MicCom Cables and Wires, Bukola Adubi, who commended the recent destruction of the goods, which included cables and wires, as the SON intensifies its campaign to rid the country of substandard products.
The agency destroyed electric cables, engine oil, LPG cylinders, stuffed tyres, and unapproved cigarettes, including low-grade roofing sheets.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
