FIVE firms in the manufacturing industry spent a combined N27.220 billion to procure raw materials in three months.

The companies cut across foam industry, breweries, pharmaceuticals  and paints.

Data obtained from these companies shows that Vitafoam Nigeria Plc, topped the pack  with N16.853 billion in quarter 1 of 2023, higher than the N16.501 billion spent in the corresponding quarter 2022.
In the breweries sector, Guinness Nigeria Plc’s raw materials  spending wen up N8.758 billion  from N8.562 during the period under review.
Furthermore, still in the same sector, Champion Breweries Plc also purchased raw materials valued at N798.225 billion  compared to N1, 1 95 billion spent in the first half of 2022.
In the pharmaceuticals industry, Neimeth International Pharmaceutical Plc , expended N781 .154 million  above the N734.778 million spent in the corresponding quarter 1 2022.

Next, Berger Paints Plc’s Raw materials sourcing also  climbed to M69.25 million  compared to N25.749 million procured in the first quarter of 2022.

What Needs To Be Done
In a position document, the apex body of the Manufacturers in Nigeria  – Manufacturers Association of Nigeria ( MAN) said that the  Federal Government shoukd adequately fund the Raw Materials and Research Development Council (RMRDC) so that it can develop more local raw materials for industries.

Segun Ajayi-Kadir, MAN Director-General, noted that the development and production of Active Pharmaceutical Ingredients (APIs) has continuously eluded due to limited funding of the RMRDC by the government.

” The absence of local production of APIs has been having dire consequences on the  pharmaceutical production, particularly in the  current situation of acute shortage of forex,” he said.

Also, Mr. Ken Onuegbu, the National Chairman of Industrial Pharmacists of Nigeria (NAIP), said that foreign exchange has placed over 20 percent hike on production of drugs locally.

Onuegbu highlighted negative impact of importing over 80 per cent of medicines into Nigeria.

He attributed acute inadequacy of local manufacturers to an unsuitable working environment. He lamented that while the country continues to worry over shortage of local investors and high cost of imported drugs, few surviving manufacturers are being shut down.

He said that the NAIP is not against government policies intended to sanitise the sector and called for mutual engagement and understanding between the association and authorities.