Paint makers increase prices, seek FG’s forex window

Owing to the current recession in the country, and its harsh effects on Nigeria’s manufacturing sector, paint makers are currently increasing their prices to contend with the high rate of foreign exchange in the market.

The paint operators under the aegis of Paints Manufacturers Association of Nigeria (PMA) expressed this while speaking with The Guardian, revealing that the scarcity of dollar has impacted on their production process as 80 per cent of its raw materials are imported and supplied by associated member-companies.

They lamented that the stock of raw materials by members are dwindling, making it impossible to meet orders.

According to the Executive Secretary, Mr. Jude Maduka, the government should wade into their plight and provide paint manufacturers access to foreign exchange as being done in other industrial concerns, The Guardian reports.

He foresees halt in production in several factories, which will lead to job losses in the sub-sector and associated industries such as resin manufacturers, raw materials suppliers, haulage companies, applicators and other service providers, if the government ignores their plea for assistance.

The Guardian  investigation revealed that the major paint companies including President, Berger, Finecoats, Prestige Paints and Chemical and Allied Products (CAP) Plc manufacturers of Dulux paints have already reviewed their prices several times. Infact, Finecoats is adopting another new price from today while Prestige and President Paints increased prices few days ago.

Speaking on the development with The Guardian, a dealer with stores in Oko’Oba, Agidingbi and Ikeja area of Lagos, Mr. Bolaji Akeem said the increase in price by manufacturers has impacted on patronage negatively.

He explained that for Eagle Paint, white colours, which  was sold for N1, 500 and colour N1, 400 for four litres before but now goes for N2, 000 and N1, 900 respectively. While the 20 litres drum sold for N7,000 (white) and N6, 300 before, now sell for N10, 000 and N8, 900 respectively.

“The textcote is about N13, 000 which was N9, 000 before and the gloss which was N3, 500 before, now sells between N5, 000 and N6, 000. While Matt which was sold for N13, 000 before, is now sells for N16, 000 and Satin which was N17, 000 before, now sells for N25, 000”.

For him, the increase, which was about 30per cent, is too abnormal for the market. He recalled that patronage was as high as 70per cent before the increase, but now stood at about 40per cent.

He advised that the government and other stakeholders must find a lasting solution to the exchange rate problem.

Read more: http://guardian.ng/property/paint-makers-raise-prices-seek-fgs-forex-window/

Source: The Guardian