Naomi Uzor & Dotun Ibiwoye
25 December 2008
The Cosmetics Manufacturers and Ethics Association of Nigeria (COSMEAN) has called on the Federal Government to review the duty on imported raw materials and inputs needed in the industry from 10 per cent to five per cent.
This much was said at a press briefing in Lagos, organised by COSMEAN, stating that a reduction in the duty charg on raw materials and other imported inputs would help bring down the cost of production which can, otherwise, cripple the cosmetics and allied industries with the attendant job losses in 2009.
The chairman of COSMEAN, Mr. Emmanuel Nwakanma, said the meddling of the government had become imperative in view of the influx of cheap and sub-standard competing brands in the country. He called on the government to consider placing an outright ban on some of the finished products like hair relaxers and hair pomades or hair creams that had virtually taken over the Nigerian market.
According to him, the ban had become more compelling in view of the unfavourable operating environment in the country, which made local products less competitive and that the net result of the high cost of production is that the Nigerian manufacturers produce under great stress while the prices of their products must also take into consideration that factor and thus remain high.
The association wants both the executive and the legislative arms of government to immediately halt the proposed implementation of the additional burden on the already battered shoulders of Nigerian manufacturers.
Conforming, Mr Boyo of COSMEAN said the number of companies, both small and large, engaged in cosmetic production exceed 100, and may be responsible for giving jobs to between 500,000 and 1 million people in Nigeria. "The industry also saves the country possibly well over $300m in foreign exchange every year. Eight years ago, the serious treat posed by the organized adulteration in the cosmetics market brought together a dozen or so genuine indigenous small and medium manufacturers to form COSMEAN as a platform for defence and attack for our businesses against the perpetrators of fake products. COSMEAN today consist of almost 30 member companies and has collaborated with notable government agencies such as NAFDAC and SMEDAN to facilitate and streamline the activities of the sub-sector in line with the universal best practices.
Be the first to Write a Comment!
Copyright © 2008 Vanguard. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
