LAGOS – The Chemical Traders Association of Nigeria on Thursday urged the Federal Government to support the growth of local manufacturing industries by revamping nation’s ailing refineries.
The Vice-President of the Marine Beach Chapter of the association, Mr Timothy Chimadu, told the News Agency of Nigeria (NAN) in Lagos that resuscitation of the refineries was imperative to sustain manufacturing companies.
Chimadu said that high prices of industrial chemicals used by manufacturers as raw materials for their[pro_ad_display_adzone id=”10″]
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products were worsened by the recent devaluation of the naira.
“Most of these industrial chemicals used by companies for producing their products are imported. They are now so expensive due to the devaluation of the naira.
“When Kaduna and Port Harcourt refineries were working, many of the chemicals used for producing [pro_ad_display_adzone id=”10”]paint, cosmetics, plastics and some other products were sourced from them at cheaper prices.
“The chemical business was lucrative then because we were sourcing our goods locally without need for foreign exchange and importation duties.
“The government should, therefore, create a platform whereby we can get the chemicals here by putting our refineries in order.
“Most of these imported chemicals can be produced here in Nigeria.” [pro_ad_display_adzone id=”10″]
Chimadu said that some companies were not functioning because of the high cost of raw materials which had affected the growth and patronage of the chemical business in the country.
According to him, productions which ought to be done locally to improve the economy of the country has been moved to neighbouring countries, due to irregular power supply and high cost of chemicals used as raw materials.
“Many manufacturers in Nigeria are not finding the business environment conducive based on the challenges and this has made some of them to migrate to neighbouring countries.
“The vacuum left by these manufacturing companies that left Nigeria has added to the unemployment situation of the country.
“For Nigeria to achieve her goal of being on the list of the top 20 most industrialised nations of the world in 2020, she must develop basic chemical industries.
“These chemical industries will serve to meet the chemical requirements of the existing manufacturing companies and also new ones,” he said.
He also urged the government to check indiscriminate importation of goods that could be produced locally to boost the growth of local industries and make the economy to grow. (NAN)