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Financing Challenges
Business owners, new or established, rely on banks to finance their operations, but access to credit remains a persistent challenge in Nigeria. In this country, banks do not readily lend money to entrepreneurs. Financial institutions often impose stringent lending policies and high-interest rates, ranging from 25% to 40%, making it difficult for businesses to secure loans for expansion, investment, and innovation.
This limited access to credit impedes manufacturers’ ability to upgrade equipment, adopt new technologies, and explore market opportunities. But there is a bright side: the government’s efforts to address the lending issue through various financial inclusion programs have shown some progress.
Skilled Workforce Shortage
The shortage of skilled workers poses challenges to plastic production in Nigeria. Few highly skilled employees possess the expertise to operate precise machines or manage a factory, hindering the sector’s ability to adopt advanced technologies. A nationwide investment in education could equip the workforce with the skills needed for modern manufacturing practices. At the same time, COPAR has tailored a unique training program based on its extensive experience in the African market to address this challenge. The program is designed to provide training to local workers.
Infrastructural Obstacles
Most manufacturers in Nigeria have to deal with infrastructural challenges that slow down their production cycle. Frequent power outages disrupt production schedules, and many businesses often resort to alternative power sources, such as private generators, which significantly increase production costs. In parallel, the lack of reliable utilities, such as water and gas supply, adds to manufacturers’ long list of challenges. In such a landscape, resourcefulness is critical. At COPAR, we could effectively apply our experience and know-how through customized molding solutions, low cycle time, and cost-effective molds to help the Nigerian plastics sector reduce production costs.
Transportation Bottlenecks
The transportation system in Nigeria presents a substantial obstacle for manufacturers. Roads are not always easy to navigate, and congested ports contribute to delays in the movement of goods. This affects the timely delivery of products to customers and increases logistics costs for manufacturers. The reliance on rail or air transport, when roads would be more efficient, further slows down operations. Finding creative and safe transportation solutions would benefit trade in plastic molds within and outside Nigeria. With several years of experience in international transportation, COPAR could partner with local firms to develop solutions to reduce delays and costs caused by transportation issues.
Conclusion
Plastic manufacturers face non-negligible hurdles when attempting to enter Nigeria’s manufacturing landscape. Alternative funding avenues, collaboration with governmental programs, and long-term solutions such as education investments can pave the way for success. Ultimately, plastic manufacturers that display agility and embrace a collaborative and adaptive approach, will be more likely to succeed in Nigeria. At COPAR, we’re looking forward to contributing our expertise to the plastics packaging industry in the country.
Join the conversation — share your experiences and insights into overcoming manufacturing challenges in Nigeria. We welcome your thoughts and feedback!