An Industrialist, Mr Lucky Onyesom, has urged the Federal Government to address the challenging economic environment which currently impedes capacity utilisation by manufacturers across the country.
Onyesom, the Managing Director, Master Chemicals & Fertiliser Limited, made the appeal at the first Annual General Meeting (AGM) of the company in Asaba on Wednesday.
He explained that providing urgent solutions would enhance industrial growth and boost the nation’s Gross Domestic Product.
The Managing Director identified the collapse in oil prices, global economic meltdown and COVID-19 as major causes of foreign exchange shortage in Nigeria since 2020.
He added that the naira’s depreciation also arose from the shortfall in revenue and resultant pressure on the foreign reserves.
According to him, the currency depreciation led to increased costs of materials in the year under review.
“Forecasted high inflation remained high in 2022 and this impeded improvements in business sentiment and dampened real purchasing power.
‘’A major raw material in our product chain, MOP Pellet, was a major issue that negatively affected the company’s performance during the year under review”, he said.
Onyesom described the company’s performance in the difficult macroeconomic environment as a testament of the commitment, diligence and resilience of its management and personnel.
He said these qualities worked to create long-term value for stakeholders based on the company’s vision and mission.
The Managing Director announced a proposal to increase the authorized share capital from 1,000,000 of N1.00 each to 100,000,000 shares of N1.00 each in 2023.
He added that while shareholders would be allotted 60,000,000, the remaining 40,000,000 will go to the directors.
Onyesom said the company planned to invest in Urea plant with 300 metric tons per day capacity, and had hired a consulting firm to work with a Chinese company to actualise the plan.
The management adopted the motions and ratified the decisions while the financial statement report, presented by a Lagos-base audit firm, Ogagavworia & Co, was adopted by the directors of the company.