The expenditure on alternative energy was linked to increasing diesel prices that had reportedly impacted negatively on the production capacity of many manufacturing entities.
Last month, oil marketers said the foreign exchange crisis in the country and the recent implementation of a 7.5 per cent Value Added Tax on Automotive Gas Oil, popularly called diesel, had pushed up the cost of the commodity to between N900 and N950/litre in many states. Local manufacturers claimed that the development may lead to the closure of some factories and job losses.
While reacting to the development, the Director-General of the Nigerian Textile Manufacturers Association, Hamma Kwajaffa, said several textile manufacturers were contemplating shutting down their operations owing to rising costs, largely caused by skyrocketing energy costs.He said, “Many are contemplating closing for now. We can’t meet up with that kind of amount. We have less than 24 textile today; those that are working are contemplating closure. They have been pushed to the wall.
In the same vein, the Chief Executive Officer of Coleman Technical Industries Limited, George Onafowokan, said increased diesel costs implied increased cost of production for the company.All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.