- Lack of foreign exchange and electricity are major challenges facing cable manufacturers in Nigeria
- Olubukola Adubi, the Chief Operating Officer of MicCom Cable, stated this during an interview.
- He called for an appropriate legal framework and fiscal environment to encourage investment in copper and aluminum mines in the country
The Chief Operating Officer (COO) of MicCom Cables and Wires Limited, Bukola Adubi, has identified access to foreign exchange, electricity and hostile policies on the importation of raw materials as major challenges facing cable manufacturing in nigeria
Adubi, who serves as the Chairman of the Cable Manufacturers Association of Nigeria (CAMAN), disclosed this in a recent interview.
Source: Getty Images
Cable manufacturers are facing frustrating situations in Nigeria
With the national grid collapsing some 98 times since 2015, the cost of alternative energy sources to sustain local cable manufacturing is taking a heavy toll on indigenous businesses. These challenges are further compounded by the federal government’s policies on the importation of raw materials for cable manufacturing into the country. The head of the MicCom described the situation as frustrating.
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From huge taxes to excessive import duties on raw materials, cable manufacturers have often reported the bottlenecks they face in importing raw materials as they erode the bottom line.
Adubi highlighted the role of various cable categories in the development of the energy value chain. Calling for measures to ensure the availability of these essential materials, he proposed zero import tariffs and access to the official exchange rate to improve the sector’s competitiveness.
Adubi said:
“If the cable industry, for example, were given some kind of exemption or zero duty on raw materials, along with access to the CBN rate for foreign exchange, a lot of our challenges would be resolved. This is a deliberate way by the government. it can grow the sub-sector and ensure that we are internationally competitive because we do not have a rich source of raw materials,” the MicCom chief said during a TV interview.
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Adubi called for an appropriate legal framework and fiscal environment to encourage investment in copper and aluminum mines in the country, noting that the supply of raw materials to the country would help CAMAN member companies reduce operating costs, increase its production capacity, its reserves and create jobs. , and generate more foreign exchange earnings for Nigeria.
Nigeria sees growth in patronage of locally made cables
Commending the Federal Government through the Nigerian Content Development and Monitoring Board (NCDMB) for its efforts to ensure the patronage of locally manufactured cables by the oil and gas industry, Adubi certified that the oil sector had showed significant growth in added value in the country.
She said:
BusinessDay reports that the MicCom boss further stated that currently only less than five member companies are enjoying the benefits in this space.
The company applauds SON for the destruction of quality cables, goods worth millions of naira
Legit.ng reported that the Standards Organization of Nigeria (SON) had destroyed substandard cables and goods worth millions of naira for falling below standard.
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The agency’s action has been applauded by the Chief Operating Officer of MicCom Cables and Wires, Bukola Adubi, who lauded the recent destruction of the merchandise, which included cables and wires, as the SON steps up its campaign to eliminate the country of inferior quality products.
The agency destroyed electrical cables, motor oil, LPG cylinders, inflated tires and unapproved cigarettes, including low-quality roof sheets.
Source: Legit.ng
