Photo Credit: Guardian
Sourcing for Low pour Fuel Oil (LPFO) abroad means the cost of bringing LPFO will be almost equal to the cost of bringing the other valuable products except that the cost per liter may be cheaper. However, before the expiration of the Obasanjo Government, the cost per liter of LPFO was already competing with the cost per liter of petrol or Diesel, the impact on production cost for textile became un-absorbable, therefore shooting the production cost of local fabrics to be over 150% of the foreign fabrics in the market.
A 6 yards of Ankara from Atlantic Textile as of 2003, was over N400 from the factory and Ankara of similar quality from China or Cotonou was less than ₦350 on the market, how will our distributors buy for ₦400 and compete with similar products that are in the market for between ₦300 and ₦350. This killed 90% of the textile industry, economic hardships finished the remaining 10%.
This also affected agriculture as fertilizers factories all closed shops. Paraffines, and other by-products of the Petroleum Industry all either died or switch to importing their raw materials from abroad. This affected so very many other sectors of the economy. Refinery plays a critical role in the manufacturing sector, agricultural sector, cosmetics industry, and then the oil and gas sector of the country.
Dangote Refinery, Walter Smith, Bua, and many other Modular Refineries are not just going to improve our exchange policy but will boost the manufacturing sector, thereby reducing unemployment and crime. This government, by encouraging private refineries has solved 60 years' problems and has created opportunities of unimaginable quantity into the future of this country.
Content created and supplied by: Mrliman (via Opera News )
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