Coleman Urges FG to Unlock Idle Factories, Says Local Manufacturers Operating at 20% Capacity
Coleman Urges FG to Unlock Idle Factories, Says Local Manufacturers Operating at 20% Capacity
Coleman Technical Industries Limited has called on the Federal Government to urgently reform tariff and trade policies to allow Nigerian manufacturers utilize their full installed capacity and compete globally.
The Managing Director/CEO of Coleman, Mr. George Onafowokan, made the call during a media tour and press conference at the company’s factories in Arepo and Sagamu, Ogun State. He was joined by Executive Director, Mr. Michael Onafowokan and Chief Operating Officer, Mr. Ilori Sanusi.
Onafowokan lamented that despite over $60 million investment in fibre-optics, high-voltage cables and copper processing, many of Coleman’s facilities are lying largely idle.
According to him, the company’s high-voltage cable plant — established in 2014 — is currently running at less than 10 per cent capacity, while overall capacity utilisation across its expanded facilities stands at just about 20 per cent. Its fibre-optic facility alone, he said, can supply Nigeria and a large part of Africa.
“We have the capacity, but we are not allowed to use it optimally,” he said.
Onafowokan said the under-utilisation is costing Nigeria thousands of jobs, tax revenue and export earnings. He disclosed that Coleman, a wholly indigenous company, has relied on funding from Bank of Industry, FCMB and InfraCredit to sustain its investments, without direct government backing.
He cited the company’s supply of cables to Seplat’s Yoyo offshore platform as proof that Nigerian manufacturers can meet world-class, specialised industrial standards.
To reverse the trend, the Coleman boss urged the government to:
*1. Approve its Free Trade Zone licence* for the Sagamu facility, which has been pending for over a year, to boost exports.
*2. Introduce a bonded manufacturing system* that allows manufacturers to import raw materials duty-free for finished products meant strictly for export. He said models like this are working in India, China and South Africa.
*3. Harmonise tariff policies* so that manufacturers are not forced to build separate factories inside and outside Free Trade Zones to remain competitive.
“Running factories at higher capacity will create thousands of additional jobs, increase tax revenue and boost Nigeria’s export earnings,” Onafowokan said.
He called on the Federal Ministries of Finance and Industry, Trade and Investment to be more deliberate about building large-scale Nigerian businesses, stressing that Nigeria has the potential to become a major global exporter of cables and industrial products if existing capacity is properly harnessed.
Culled from Punch news
