FOBTOB laments impact of FX scarcity on manufacturers

By Joy Obakeye

The Food Beverage and Tobacco Senior Staff Association (FOBTOB), has lamented the debilitating impact the current forex scarcity is having on manufacturers, particularly its members.

According to the association, if nothing is done with urgency, manufacturers in the FMCG space will not be able to manage the impact any further.

Speaking at its 44th anniversary last week, President of the association, Jimoh Oyibo, revealed that they are already witnessing shut downs of renowned players in the sector.

“The issue of forex is affecting my industry such that we cannot get it to use for important production. The consequence is what we don’t want to imagine; Already, one of our big employers, Ragolis Water in Ikorodu has shut down due to the unavailability of forex. That means our members working there no more have employment,” he said.

He lamented the inability of the government to provide and priorities forex for manufacturers, which has resulted in manufacturers seeking fix at the parallel market.

“It is painful that manufacturers who sustain the economy cannot get forex, but the dollar is in the hands of individuals, mostly politicians, who use it at their conventions and other political activities.

“Sourcing forex from the black market which most companies are now doing for survival, after being left with no other choice is not sustainable.

“It is unfortunate that such things are playing out. Yet we have government,” he posited.

He stressed that sourcing forex from the black market reduces the profit margin of manufacturers and “what that means is that they will not be able to meet up with their overheads”.

He urged the Government to live up to its responsibility and ensure that forex is made available to manufacturers and not party jamborees.

On the introduction of excise duty on carbonated drinks, the labour leader said the present administration has failed not only workers but Nigerians as the effects of the increase cuts across several stakeholders.

“The duty affects our members who are now producing at a loss, but despite this, our employers have been magnanimous as we didn’t witness any redundancy.

What we did was to advise our employers in those companies affected to push up the volume to make up, but our fear now is the technology being employed,”he said.

He reasoned that the workers cannot afford to lose jobs now with the current inflation that has eroded even the present earnings of the workers.

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“This government has failed us from day one. In the beginning, we felt help had come. All of us should rise to bring a government with a human face.

“The fact that there’s no consequence for corrupt practices is what led us to this level. The leadership will need to change so that at the end of the day, things will be okay for our industry and our country”.

The Labour leader added that the rising inflation is fast impacting the earnings of workers. He urged the government to rise to the occasion and address the fundamentals pushing costs of food and non-food items.

“The inflation is so high to the extent that what you are taking as salary is not taking you anywhere.

“In my personal opinion, the government has failed us from day one, at the beginning we thought that they would bring the country out of economic havoc but they succeeded in complicated issues, so the best to do is to bring a government that has a human face, that is ready to bring about changes, changes in infrastructures, changes in our ways of behaviour, because it is the head that determines the direction a society should go.”