Amidst the worsening insecurity in the country, manufacturers under the umbrella of Manufacturers Association of Nigeria (MAN) are considering alternative means of moving their goods and personnel across the country.

They are considering railways and aircrafts to ensure the safety of their wares to destinations across the country since Nigerian roads are becoming unpredictable with regard to security.

According to MAN Secretariat in Lagos, the manufacturers were groaning over high volume of unsold inventory of finished products running into billions of naira in their warehouses, which they cannot get to their destinations amid order from clients.

It was learnt that all the firms in the 13 sub-sectors that make up the country’s manufacturing sector have all complained to the secretariat.

It was further gathered that the alternative options to goods distribution being considered would not be easy as the final consumers would be compelled to pay more for the goods. For instance, the inventory of unsold products in the sector steepened to N187.08 billion (year-on-year) in the first half of 2022 down from N214.83 billion recorded in the first half of 2021; thus, indicating N27.75 billion or 12.9 per cent decline over the period. However, it shows an uptick of N17.33 billion or 10.2 per cent when compared with N169.75 billion recorded in the second half of the year.

According to MAN, inventory of unsold manufactured product remains high in the period under review due to high commodity prices occasioned by high cost product; and low level of income among firms and households. When asked about the local manufacturers’ alternative routes for distribution, the Director-General of MAN, Segun Ajayi-Kadir, said: “Our members are looking and evaluating other options for safe goods distribution network across the country since Nigerian roads are in deplorable conditions and insecurity on the roads has further compounded it that Nigerian roads are not safe for doing business in this country again.”

Ajayi-Kadir said it was appalling that many of its members were recording huge losses to Nigerian roads amidst attacks on trucks and mass extortion from illegal checkpoints by security agencies.

The MAN DG explained that the country’s manufacturing sector was dominated by informal players that are mostly micro, small, and medium enterprises and it is unfortunate that the situation is compounding their businesses in the country. The MAN boss emphatically noted that MAN would support the local manufacturers in any means of transportation that will yield safe good delivery across the country. (New Telegraph)

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