Spending increasing amounts of money on alternative energy sources are hindering profitability for Nigerian manufacturing companies, according to the Manufacturers Association of Nigeria (MAN).
“About 40% to 60% of the companies may not be making profit or breaking even,” said MAN’s director-general Jide Mike. In addition, the 30% corporate income tax is also posing problems for already struggling businesses. The United Nations Industrial Development Organization and MAN carried out a survey in 2005 that revealed Nigerian manufacturers have a 35% cost disadvantage compared with other global counterparts. MAN is proposing to lower the tax to 20% to help the industry.
“It is really a difficult thing to say you want to manufacture in Nigeria,” he added.