GSK PLC It is not just
If we continue to lose the capacity to produce and instead throw more people into the unemployment market, the requiem won't just be for the manufacturers who have bitten the dust but for the whole country of economic bystanders who cannot produce what they consume.
Anyone who still wonders why
In the 70s and 80s,
Those were the days! Gradually, we were afflicted by the importation bug. Our rulers, intoxicated by the newfound wealth occasioned by petrodollars, abandoned the 'Buy Nigeria' mantra, and started showing signs that, as far as they were concerned, charity began abroad. Afrobeat superstar,
Se tiwa ni o, mi o fe (Is that our product? I reject it)
Se tiwa ni o, mi o ra (Is that our product? I won't buy)
Ta lo ma ba wa je? (Who's going to eat this with us?)
Ta lo ma ba wa je? (Who's going to eat this with us?)
Afi ta ba ra tiwa o (If we don't patronise our own)
Afi ta ba ra tiwa o (If we don't patronise our own)
We didn't listen to Fela. We watched as one iconic manufacturing concern died after another.
Just as the death of any human being diminishes the rest of humanity, the demise of any corporate entity is a source of distress for its surviving peers. In many parts of the world, when successful corporate players who have become household names succumb to the economic variant of the grim reaper, the funeral train stretches from the location of the company to the rest of the country.
In
Many manufacturing companies have died over the years. Last week, it was the turn of
In a corporate filing, the pharmaceutical giant said it would now adopt a distributor-led model to supply the country with its products.
It made more sense to simply import and sell finished products than to manufacture goods in an environment where every manufacturing firm has to generate about 70% of its power requirements, depend on black market operators for foreign exchange to import raw materials, contend with multiple taxation and inadequate municipal infrastructure, tiptoe around corporate landmines planted by corrupt government officials...
"In our published Q2 results we disclosed that the
"For the above reasons, and having, together with GSK
GSK Nigeria's sales in the first half (H1) of 2023 dropped to N7.75 billion from N14.8 billion in the same period a year ago. In its 2023 H1 report, the company lamented that the business environment continued to be very challenging with foreign exchange (FX) availability affecting its ability to settle foreign currency-denominated trade payables with product suppliers. The company made more money from the sale of its consumer healthcare brands than its pharmaceutical brands (N2.49 billion).
It made more sense to simply import and sell finished products than to manufacture goods in an environment where every manufacturing firm has to generate about 70% of its power requirements, depend on black market operators for foreign exchange to import raw materials, contend with multiple taxation and inadequate municipal infrastructure, tiptoe around corporate landmines planted by corrupt government officials, and compete with smugglers and importers of competing Asian brands dumped in the market.
In an interview with The Cable,
"The look-alike from
"Later you will find yourself struggling to sell 50,000 because the hospital buying from you prefers alternatives because the other companies too may be quality. Once they crowd you out, you find it difficult to maintain your volume, and when you can't maintain your volume, you cannot pay your cost. The Indian will sell at 20 percent of your price. It has happened to me, so I know what I am saying."
Eleven years ago, the
Nigerian manufacturers self-generate 13,22 million 3.67 mega MW of electricity, according to a survey carried out by the Nigerian Energy Support Programme and Deutsche Zusammenarbeit (GZ) in 2015.
Now, who is to save Nigerian jobs being shipped away to other climes while we stand akimbo and continue to wallow in our regression? At this rate, Nigerians may soon have to buy commonplace items, such as toothpaste and methyl balms, from neighbouring countries. I have seen how some of them bend over backwards to accommodate foreign manufacturing firms.
In 2014, Procter & Gamble set up a
However, four years later, the company announced its decision to quit production. An insider revealed that apart from problems associated with electricity generation and inadequate infrastructure, the company's refusal to bribe customs officers and other revenue agencies led to perennial frustration, making the management decide to beat a retreat.
Apparently, the business climate of
Elsewhere, responsible governments move mountains to keep the wheels of manufacturing firms rolling, as both Presidents Bush and Obama did across two administrations (Republican and Democrat) to save the automobile industry in
Critics of the bailout at the time had argued the companies should be allowed to fail and the industry that resulted from the aftermath would be stronger.
Now, who is to save Nigerian jobs being shipped away to other climes while we stand akimbo and continue to wallow in our regression? At this rate, Nigerians may soon have to buy commonplace items, such as toothpaste and methyl balms, from neighbouring countries. I have seen how some of them bend over backwards to accommodate foreign manufacturing firms. The fact that the level of corruption in many of those countries is of kindergarten proportions compared to ours, makes their terrain even more attractive.
It is not just
If we continue to lose the capacity to produce and instead throw more people into the unemployment market, the requiem won't just be for the manufacturers who have bitten the dust but for the whole country of economic bystanders who cannot produce what they consume.
Congratulations,
Hearty congratulations to Emeritus Professor
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