• Tuesday, May 28, 2024
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Influx of substandard products hurting manufacturers – LCCI


The Lagos Chamber of Commerce and Industry (LCCI) has said that unbridled influx of substandard products is hurting the manufacturing sector. LCCI has also said faking and substandard products are also making it difficult for local manufacturers to operate efficiently.

Remi Bello, president, LCCI, says the economy is faced with unfair competition arising from unbridled importation of consumer goods into the country.

According to Bello, the situation has continued to hurt the real sector, calling for an even playing ground for all players.

Bello says evasion of import duty payment, under-invoicing and smuggling are also variables that impact negatively on the manufacturing sector. Manufacturers have bemoaned poor state of access roads to the ports. This is because it delays raw materials arrival at factories and makes export difficult.

To this end, Bello says the chamber is disturbed by the poor state of transportation logistics and access to the major ports such as Apapa and Tin Can Island port complexes.

“Getting to the ports has become an unprecedented nightmare; moving out of the ports is even a greater nightmare,” says Bello, during the third quarter economic briefing held in Lagos, saying “the entire system has become totally dysfunctional. Delivery of empty containers and the evacuation of cargo has become a terrifying experience.”

According to him, fundamental issues that need to be fixed include the rail system and refineries, as there is urgent need for the relocation of tank farms to the outskirts of the city, while the government needs to improve the reliability, safety and integrity of pipelines across the country as a means transporting petroleum products.

He further says that the power situation is still a problem for the real sector, stressing that energy cost remains a major threat to business sustainability, as “expenditure on diesel and other fuels continue to increase.”