Don't Miss

FG urged to enforce rules to save local manufacturers

By BusinessNews Staff on August 4, 2015

The Managing Director and Chief Executive Officer of Berger Paints Nigeria Plc, Mr. Peter Folikwe has called on the federal government to address the issues of exchange rate of the naira to foreign currencies, infrastructural deficit, multiple taxation in order to create the much-needed enabling environment for businesses to thrive.
He also called on the Standard Organisation of Nigeria (SON) to enforce enabling rules that will assist to sustain local manufactuers.
Besides, Folikwe appraised the Nigeria’s operating environment and proposed operation of consumer advocacy as a strategy to promote culture of quality products among manufacturers.
Folikwe explained that quality products is a necessary condition for competitiveness in the global market and it enhances consumers’ loyalty and higher turnover. According to him, Nigeria would compete more favourably in the global market if it leverage on consumer advocacy approach whereby consumers of products are enlightened that while inferior products appear cheap, they are actually more expensive than quality products in the area of durability and utilitarian value.
“The real sector is the major sector that can drive economic growth and development. But in Nigeria, the sector has consistently suffered a setback in the scheme of things. The sector is bedeviled with myriad of issues which include infrastructural deficits such as bad road, epileptic power supply, multiple taxation, Naira exchange rate volatility and the extent to which the SON is actually tracking and sanctioning those who compromise standard in their product quality. All these increase production cost and force producers to pass the cost to consumers who are already struggling with weak purchasing power. Government should address these issues without further delay.” Folikwe said.
Commenting on the operations of Berger Paints Nigeria Plc, Folikwe explained that the company, which pioneered coating and allied Industry in Nigeria, had consistently remained profitable.
He explained that the 20 per cent growth in year-on-year as at the first half of 2015 indicates that the company has been waxing stronger despite the harsh operating environment for manufactures in Nigeria.
He noted that the company operates a high level of corporate governance as adjudged in the composition of its board of, which the former boss of Financial Institutions Training Centre (FITC), Dr Oladimeji Alo is the chairman.
“I am surrounded by a strong board and management team and we place premium on adherence to the principles of corporate governance, adherence to rules and regulations, production of quality products and integration of front end with back end in order to grow profitability and ensure shareholder value”, he said.
Folikwe, who assumed office as the Chief Executive Officer in March this year explained that his pre-occupation was to drive Berger Paints as a brand whose products would continue to define quality and acceptability in Nigeria.
He stated that a multibillion naira factory was being set up to expand the company’s operations. According to him innovativeness would enable the company to come out with series of products that would not only appeal to Nigeria consumers but the entire global markets.

[ThisDay]

headline