Nigerian manufacturers have suffered in silence. No thanks to the cutthroat price of diesel and other petroleum products apart from petrol.
The astronomical rise in the price of diesel as it affects productive sectors is such that continuous silence and endurance would amount to a suicidal decision. Now is the time to cry out.
The unfortunate development is capable of killing many MSME businesses leading to massive job losses if not checked immediately. It is indeed common knowledge that increase in the price of petrol is usually greeted with public outcry and spontaneous reaction.
That appears to have informed the decision of the policymakers looking at the side of diesel and other petroleum products to increase price thus inflicting pain on already choked Nigerian manufacturers.
Because it is impossible for producers of goods and services to increase price proportional to the average cost of production, profit generated from business keeps slimming down.
By implication, the burden of resumed subsidy regime appears to be shifted on manufacturers through hidden and painful increase in the price of diesel.
Manufacturers’ representatives and Labour union leaders should swing into action and sensitise government to the looming crisis if the trend is not curtailed immediately.
Source: Punch
