Aromolaran explains how MDAs are frustrating ‘Patronage Policy’, local content
More industrialists have joined in the ongoing crusade by manufacturers to complain against the actions of Ministries, Departments and Agencies (MDAs) in not patronizing locally made goods.
Voicing her anger, the Managing Director of Crown Natures Nigeria Plc., a textile and apparel outfit, Mrs. Omolara Aromolaran decried non-patronage of locally produced goods, especially by ministries, departments and agencies of government even when they meet international standards.
She said the inability to sell produced goods has led to operators incurring huge operating costs while the turnaround time has continued to expand.
Aromolaran decried further that “If you are running on a loan, you would have defaulted already due to goods that are yet to be sold. Loans are being used to repay loans. DFIs are operating like commercial banks in terms of loan recovery. The business is in a bad shape as capital is sitting down.
“Patronage policy needs to be implemented for industries to survive. Government parastatals don’t buy even from projects sponsored by them. Funding an industry is an issue but buying from the businesses that they have funded is also an issue.
“If the trend continues, jobs would be reduced. The volume of available stocks will determine the amount of labour needed. Every company has a projection and many of these projections are being extended. Government has tried but not really done anything in the real sense of it. The economy needs to be buoyant for operators to survive”, she added.
Before now, the Chartered Institute of Purchasing and Supply Management of Nigeria (CIPSMN) had expressed worries over the weak public procurement practices especially in federal ministries.
President of the group, Diekola Oyewo, said noted that “Bureau of Public Procurement (BPP) is weak and we are ready to train people to become professionals in procurement services. Procurement professionals prevent corruption at no cost and it is better not to fight corruption because it is very expensive to combat. We believe the present administration has the political will to change the weak nature of the industry”.
A typical example to the defiance of government agencies to patronage policy was an advert for the supply of US made Dell Desktops Computers by the Central Bank of Nigeria (CBN) posted on the bank’s website late last year.
Though checks Sunday on the site showed that it has been yanked off, it would be recalled that Business Hilights pointed the default in a story in December when the advert was posted.
