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February 26, 2024

Firm identifies forex, electricity as challenges facing cable manufacturers

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By Emmanuella Anokam

The MicCom Cables and Wires Ltd. has identified access to foreign exchange, electricity, and unfriendly policies on the importation of raw materials as major challenges confronting cable manufacturing in Nigeria.

The Chief Operating Officer of the company, Bukola Adubi who doubles as the President of the Cable Manufacturers Association of Nigeria (CAMAN), made this known in a statement on Friday.

Adubi said with the national grid collapsing about 98 times since 2015, the cost of alternative sources of power for sustaining local manufacturing of cable was heavily on indigenous companies.

These challenges, she said, were further exacerbated by the Federal Government policies on the importation of raw materials for in-country cable manufacturing.

The MicCom boss described the situation as frustrating.

“From huge taxes to exorbitant import duties on raw materials, cable manufacturers have often decried the bottlenecks faced in importation of raw materials as these erode the bottom line.

Adubi, while emphasising the role of various categories of cables in the development of the energy value chain, called for measures to guarantee the availability of these essential materials.

She proposed zero import duty and access to the official exchange rate to improve the competitiveness of the sector deserved.

‘’If the cable industry, for instance, was granted some form of waiver or zero duty on raw materials, along with access to the CBN rate for foreign currency exchange, a great part of our challenges would have been resolved.

That’s a deliberate way the government can grow the subsector and make sure that we are internationally competitive because we do not have a vibrant source of raw materials,” she said.

Adubi called for the legal framework and right fiscal environment to encourage investment in copper and aluminum mines in-country.

She added that sourcing raw materials locally would help CAMAN member companies to reduce operational cost, increase their production capacity and reserves, create jobs, and generate more foreign exchange earnings for Nigeria.

“From very complex cable sets like umbilicals used in subsea operations to the building of FPSOs, and numerous fabrications and constructions, you can’t rule out cables.

“But inadequate power supply is the bane of development for our industries. You can only imagine the cost expended to keep production running all through the year. It creates a significant impression on the bottom line.

“You need virile sectors to forge reasonable partnerships in Africa,” she said.

Commending the Federal Government through the Nigerian Content Development and Monitoring Board (NCDMB) on its efforts in ensuring patronage of locally-manufactured cables by the oil and gas industry, Adubi said the sector had shown significant growth of in-country value addition.

She said currently, local content was maximised in the oil and gas sector.

“I will especially thank NCDMB because they have ensured that the law is being implemented.

“It will be good if a lot more of our members enjoy that benefit. That’s a major part of our strategic plans as CAMAN for 2023,” she added.

Adubi further stated that at the moment only less than five member-companies were currently enjoying the benefits in this space. (NAN)(www.nannews.com)

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Edited by Chinyere Joel-Nwokeoma

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