A former Chairman of Manufacturers Association of Nigeria (MAN), Ogun chapter, Mr. Wale Adegbite, has said that the rising inflation rate in the country has impeded growth and hindered the real sector from performing at optimal level.
Adegbite stated this in an interview with the News Agency of Nigeria (NAN) on Sunday in Ota, Ogun.
He spoke while reacting to the rate at which inflation has kept rising in the country.
The National Bureau of Statistics (NBS) had, on Friday, said that the nation’s inflation increased from 12.40 percent in May to 12.56 percent in June.
Adegbite said that the rising inflation rate had made the cost inputs of manufacturers to go up, adding that they could not pass all the cost to their customers.
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He further said that the effect of the persistent increase in inflation rate was that they operated with low profit margins.
“In addition, inflation has reduced the purchasing power of our customers, hence they buy fewer goods,” he said.
Adegbite appealed to the Federal Government to intensify efforts in providing an enabling environment, particularly provision of stable electricity and good roads, among others.
He also stressed the need for the Federal Government to ensure regular supply of forex for manufacturers to enable them import some of the materials not available in Nigeria with ease.
All these, Adegbite said, would not only bring down the country’s inflation rate but would also provide job opportunities for the teeming unemployed youth in the country. (NAN)
