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Cutix Plc said the high cost of forex at the parallel market is adversely affecting the company’s business and other manufacturers in the country.
Chief Executive Officer, Mrs Ijeoma Oduonye, who disclosed this at a press conference to mark the company’s 40th-anniversary celebrations, listed other challenges affecting the industrial cable/wires manufacturer over the years.
Some of these challenges include unstable government policies, multiple taxations, a turbulent macroeconomic environment, poor infrastructure, difficulty in sourcing raw materials due to high rates of foreign exchange and the influx of substandard products in the market.
Impacts of forex: Oduonye said the negative impacts of macroeconomic factors like the high forex rate make Nigeria a very difficult place to do business.
“On forex, two days ago we woke up with N800 to the dollar, by midday it was N8.20, before the closing of business it was N8.40 and yesterday it was N8.60 per dollar and if nothing is done, it is expected to keep on moving.
“One can only imagine what it looks like running a business in that kind of environment, if you ask me I will say it is a very turbulent microeconomic environment for us. And we are not insulated from the difficulties that go with such a situation, but we are surviving, forging ahead despite the unfavourable operating environment,” she said
