Paint manufacturers, under the aegis of Paint Manufacturers Association (PMA), on yesterday said that capacity utilisation in the sector had dropped to 25 per cent.
The association’s President, Mr Suleiman Tella, disclosed this in Lagos.
He said that the capacity utilisation dropped from 30 per cent in the last few years.
Tella said that the drop in the performance of the sector was due to adulteration of products as well as the high cost of doing business. He said the situation had rendered almost 50 per cent of the paint manufacturing companies moribund.
“The paint industry in Nigeria presently has an average annual turnover of N50 billion and this constitutes 25 per cent capacity utilisation. Our installed capacity, from about 100 active paint manufacturers in the country is 200 million litres of paints, if all things are in place to an extent. Adulteration of our paint products is one of our major challenges and this is because the fine levied on offenders is too low,” Tella said.
He said that paint manufacturers in the country had not been able to produce up to 50 per cent of the paint products consumed in the country due to insecurity and unstable power supply. According to him, this means that implementation of the local content policy has been problematic. The industrialist urged the Federal Government to create a more enabling environment for all manufacturers.