A renowned industrialist and Chief Executive of Shanghai Engineering Works and Industrial Limited (SEWIL), Mr. Festus Mbisiogu has sent a Save-our-soul to the governments over the threat posed to industries because of irregular power supply and high cost of diesel in the region.
Mbisiogu who spoke at the backdrop of consistent epileptic power supply in the south east, said his industries which employ hundreds of Nigerians are in danger of closing down. He also urged for the government’s intervention through palliatives to enable manufacturers to handle the costs.
He said the current costs of diesel have made it difficult to ensure production at this time, as diesel has gone up to N720 and N730 per litre.
“He said: “It has never been like this before. It is becoming extremely difficult to produce and I don’t know how we are going to cope because I am virtually running my industries on diesel.
“I spend over N14 million every month to get my industries running. We are currently running at a loss and we are in danger of laying-off hundreds of workers.
“There is no power supply; we are having less than 40 per cent of what it used to be, while the costs of products are going up.
In a statement, Mbisiogu said the recent complaints by the nation’s distribution companies (DISCOs) of running at a huge loss and the revelation of the Bureau of Public Enterprises (BPE) that most of the utilities were technically insolvent confirmed that something drastic needs to be done in the sector.
His words: “It is obvious that these firms are operating below optimal level. They are overwhelmed by the challenges in the sector and they have no solution to these problems.
“That have fallen shot both in price structure and liquidity and that is why we are still yet to obtain a reasonable level in power distribution. Typical of everything Nigeria, the Federal Government has allowed the DISCOs to take advantage of everyone and many Nigerians are paying for the services they do not enjoy.
He said at no time than now do they need the intervention f government. “I know government can intervene and do something in this regard. They can extend palliatives to these industries and they can also make arrangements where the Transmission Company of Nigeria (TCN) can concentrate much in industrial areas, because the industries are the ones really providing jobs for unemployed Nigerians.
Mbisiogu reiterated his earlier call that the government of President Muhammadu Buhari should declare a state of emergency on power. “This situation that has lingered for a long time is already having a devastating impact on the industrial sector. The government should do everything within its limits to preserve this sector. If this growing we may be forced to close shops,” he said.