Raw materials import dips 22.36% to N1.88tn

Manufacturers spent N1.88tn on raw materials import in nine months, foreign trade reports of the National Bureau of Statistics have shown.

The Q1-Q3 foreign trade reports indicated that manufacturers imported raw materials worth N1.88 bn between January and September 2022, a 22.36 per cent decline from the N2.43bn they spent in the corresponding period in the previous year.

The dipped was on the back of forex scarcity in the country which has made many firms source their raw materials locally and those who could not get their inputs in the country had to stop production.

They claimed may be forced out of business by the current difficulty they grappling with sourcing raw materials.

The Chief Executive Officer of Coleman Technical Industries, George Onafowokan, said the weakness of the naira, particularly in the parallel market, where a majority of manufacturers source foreign exchange, has greatly disrupted production activities.

Onafowokan expressed optimism that the price hikes which followed the naira’s devaluation would fizzle out if the currency maintained its current momentum.

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