By Vivian Ihechu
Lagos – As manufacturers bemoan the high cost of production in the country, Mr Christopher Nebe, Managing Director, Phamatex Industries Ltd., says there is an urgent need for the Federal Government to mitigate factors affecting the smooth processes of manufacturing.
Phamatex Industries (Nigeria) Ltd. is a leading Nigerian indigenous world class pharmaceuticals manufacturing company in Lagos State.
Nebe made the plea on Thursday in Lagos when members of the Health Writers Association of Nigeria (HEWAN) embarked on a facility tour of the pharmaceutical company.
Bad Roads, a business hindrance around industries at the Amuwo Odofin Industrial Estate, Lagos State, where Phamatex Industries Ltd. is located, Friday, Sept. 26, 2019. (NAN)
According to Nebe, some of the factors affecting pharmaceutical industries, and indeed, other industries in Nigeria, include poor power supply, bad roads and lack of loan facilities.
“The manufacturing, especially the pharmaceutical industry, involves processes and these processes, the Phamatex Industries inclusive are quality; process is potency and potency is the process of manufacturing in an industry like ours.
“Certain measures need to be in place for these processes to take place and even be maintained; for us, we are dealing with things that involve life, so we have to be extra meticulous.
“There are so many things that government can do to help bring the overhead cost of production low, thereby also making the prices of goods come down.
“In some instances, production will go down well if a levelling environment is created,’’ he said.
Bad roads and transportation hitches (transportation and logistics hindrances) around industries at the Amuwo Odofin Industrial Estate, Lagos State, where Pharmatex Industries Ltd. is located, Friday Sept. 26, 2019. (NAN)
Nebe said the availability of good roads played critical role in manufacturing and distribution.
“You can see our bad roads here; so, how can you manufacture in this kind of atmosphere.
“There are also no incentives as there is supposed to be a free term loan like facilities; there should be no interest or very minimal interest if you want to call it manufacturing.
“Indeed, there are many challenges with the manufacturing sector,’’ he added.
On electricity, Nebe urged the Federal Government to formulate policies on power supply to solve the issue of poor electricity supply.
“Now, if you have light, the production costs will go down, and the pressure will also go down.
“If you manufacture with diesel, it is killing because manufacturing with diesel is expensive; one can spend over N12 million monthly.
“If you spend such an amount on diesel to manufacture, somehow you will factor the cost into the cost of the products you are manufacturing.
“So, we need light; it is a very critical part of the process which government must address,’’ the business mogul said.
According to him, government also needs to look into instituting a zero percent policy on import duty of raw materials and that the importation process should be easier.
“That is the way to help; let us start from there and then also, the government should give soft loans to manufacturers.
“Borrowing from banks and the working capital are huge issues; industries need the working capital to produce and sustain it.
“No company finds it easy to secure loans or bring in materials without bureaucracy and high charges.
“If you say all raw materials for production must be subsidised or waived, it will make the price of production as well as those of goods to go down,’’ the Pharmatex CEO said.
Nebe said Phamatex was a group of companies that is into manufacturing and importation of drugs in Nigeria.
“We have one of the finest range of products in the country which includes Lumapil, an Anti-malarial; we are also the exclusive agent of Hovid products in Nigeria.
“We are known for high quality, especially with our hi-tech equipment and always ensure that standards are maintained.
“We urge the government to look into these issues and more to ensure sustainability of Nigerian industries as well as ensure that high quality products, especially drugs are available for the citizens,’’ Nebe said.
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