Standards Organisation of Nigeria (SON) at the weekend revealed that the figure of indigenous companies closing down in the state was alarming.
It said at least, 11 per cent of the companies closed down every year due to unfair economic realities.
SON Kwara State Coordinator Ayeni Oyebola told reporters in Ilorin after presenting the Mandatory Conformity Assessment Programme (MANCAP) certification to Ayo-Ayodele
Pharmaceutical Chemists Nigeria Limited.
He said: “In Kwara State, about 11 per cent of companies close down annually as a result of unfavourable economic climate. For instance, there were seven steel factories in the state about 15 years ago. As I speak to you, it is only one that is surviving. We have about 27 youghurt companies in the state 10 years ago. Now only two are surviving.
I interacted with table water producers association in the state and they told me that about 33 of them have closed down.
“We need to consider those companies that are closing down because of economic and technical problems. The figures are becoming alarming. That was why the government created ease of doing business.”
“There is a national sustainability plan we are engaging in now and we are working with these government agencies to make sure that the companies do not just close down.
“The factors for the short lifespan of these companies are numerous.
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One is expertise, another is improper establishment of some of the
companies and another is the unfair competition the companies are subjected to.
“Another one is the challenges we have in this country. But because SON is aware of some of these challenges, we come in with expertise.
Statistics from our field shows that small-scale companies have to be carefully nurtured and cultivated for them to survive in the country we are.
“Because we are aware of the statistics of the number of companies that close down yearly. For our economy to get better, we need to focus on those companies. So that over the years they will be able to
create products that will compete internationally with other companies.”
The Executive Director of the company, Damilola Shittu, decried the influx of substandard products into the country.
Shittu, represented by the Factory Manager, Maruf Lawal, said: “At the top of the challenges threatening the existence of local businesses in Nigeria is the influx of substandard products, for example cotton wool, which have flooded the Nigerian market by unregulated elements.
“We enjoin the organisation to tighten the noose on the people engaging in these sharp practices to ensure the health and safety of unsuspecting Nigerians.”