FX, Energy Crises Crippling MSMEs
Managing Director of Stellarchem Nigeria Ltd, Ikpong Umoh, has lamented the daunting challenges including foreign exchange and energy crises amongst others have adversely impacted the critical role of Micro Small, and Medium Enterprises (MSMEs) in the nation’s economy.
Stating some of the challenges faced by MSMEs, Umoh, noted that electricity alone accounts for the biggest cost to operations in business in Nigeria, adding that Forex availability is the other head of manufacturers’ nightmare.
He spoke at the 2022 edition of the annual workshop of the Commerce and Industry correspondents Association of Nigeria (CICAN), where he advised that if MSMEs must survive the harsh terrain of doing business in the country, they have to think outside the box by adopting a variety of methods.
He also noted that Nigeria is unable to satisfy local demands for most manufactured goods due to the low productivity level in the sector, regretting that Nigeria continues to lose over $2 billion annually to pencil importation and keeping over 400,000 people unemployed.
According to him, “Stakeholders say that since the country began manufacturing pencil in 2019, policy formulation by the Federal government to encourage operators has been lacking, and as such, they have been unable to keep up the competition in the face of continuing pencil imports and the stifling operating environment.”
He urged the government to enact policies that will assist small businesses to grow the economy.
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