• Sunday, May 26, 2024
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BusinessDay

MAN in Rivers moves to save collapsing companies

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As more companies especially in the Trans-Amadi Industrial Area of Port Harcourt close shop and threaten over 100,000 jobs, Manufacturers Association of Nigeria (MAN) in Rivers State and the South South wing of the association have moved to save the situation.

BusinessDay gathered that a new wave of closure has hit companies operating in Rivers State especially those in the Trans-Amadi area as companies such as First Aluminum, RIVOC and NEW may consider critical decisions to hang on or shut down.

It was gathered that the fate of these companies featured prominently at the last meeting of MAN. Already, it was further gathered that First Aluminum has sent 400 workers packing with another 200 said to be penciled down. Sources further said another company dealing in vegetable oil and related products, formerly government-owned, is on the verge of closure. The expatriate chief executive officer (CEO) of an engineering company specialising in the manufacture of refrigerators, fans and other electronic appliances has already left, a move that may lead to the closure of the company.

Officials of MAN led by Emilia Akpan, chairman, MAN, South-South and a member of the presidential committee on ports, explained to business correspondents why companies in Trans-Amadi are fast shutting down, throwing over 100,000 employees into the labour market even when those sacked by the likes of the National Fertiliser Company in Onne years ago are yet to get new jobs.

Officials blamed it on dumping of foreign goods, lack of patronage by Nigerian governments, power supply crisis, multiple taxes, high port charges in Eastern ports, insecurity at sea making shippers to avoid eastern ports, etc. The implication of this is that the cost of goods made in the region is too high for competition. MAN believes governments can deliberately support manufacturers with incentives including buy off and subsidies. Patronising locally made goods despite some quality disparity is usually a measure by patriotic local administrations around the world to give some advantage to their local economy. 

 

IGNATIUS CHUKWU