Lagos – A manufacturer, Mr Edwin Ibude, on Saturday said high cost of production due to the erratic power supply, still posed a challenge to the manufacturing sector in Nigeria.

Ibude, the Group Executive Director, of a manufacturing company, said at the ongoing 2011 Lagos International Trade Fair.

NAN reports that the company is a local conglomerate with interests in lubricants, plastic packaging and pharmaceutical products, farming, haulage and supermarkets.

“There are challenges peculiar to all the manufacturers. Source of energy is an issue and cost of production is high because of cost of energy.

“Our roads are in deplorable conditions which have effects on maintenance and life span of our vehicles.

“Water is also a challenge to us because, before you set up a plant, you have to think of how to source your water,” he said.

The group executive director said that access to fund was also a challenge as the situation made it competitive when doing business outside the country.

Ibude, however, stated that the Local Content Act would encourage local manufacturers to be actively involved in the oil industry.(NAN)