Forex Restriction hinders tricycle assembly plants

The company’s Secretary/Legal Services, Ademuyiwa Abe said the firm has been forced to cut down its 1,000 per day production capacity by 40 percent.

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Bajaj play

Bajaj tricycle

(wikipedia)
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The restriction imposed by the Federal Government in the foreign exchange market has had a big impact on the supply of labour.

This has particularly affected Dag Motorcycles Industries Nigeria Limited, the assemblers of Bajaj tricycles and motorcycles.

Ademuyiwa Abe , the company’s Secretary/Legal Services, said the firm has been forced to cut down its 1,000 per day production capacity by 40 percent.

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“In the last few months of last year, there was restriction on foreign exchange by the Central Bank of Nigeria (CBN); so most of the time, there was no foreign exchange to bring in the CKD, not just the CKD, but other items required for assembling. Since there was no more foreign exchange, the situation became so bad that we had no choice but to terminate the services of our contractor who supplies the workers that do the assembling”.

He made an appeal to the government to consider strategies that can make work less difficult for production companies, especially when related to the acquisition of labour.

"We are appealing to the government to consider manufacturers in the country, the exchange rate is gradually killing our business, we import at a certain rate and by the time we want to order for more materials we find that the value would have gone up to what we cannot afford thereby increasing the cost of production."

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