‘High cost of diesel, foreign exchange hindering growth of fashion industry in Nigeria’

As the price of diesel continues to rise, as well as the rise of foreign exchange, Small and Medium Enterprises (SMEs) are struggling for survival in Nigeria.

Speaking in Abuja, Prince Kevijf, Chief Executive Officer of G2G-Designs said the fashion industry was also struggling for survival.

He lamented that the high cost of diesel was pushing up prices of designer clothes, which in turn is discouraging patronage.

The CEO said business empires in the country were currently buying diesel at the rate of N820 per litre which has resulted in an increase in the price of finished products in the sector in the country.

He said “you can not compare the prices of products when diesel was sold at N650 per litre and now that diesel has gone up. Surely, the business empire will look for a way to cover the running cost which means an increase in prices.”

Kevijf further stated that another challenging factor in the industry was the unstable rate of foreign exchange in the country.

According to him, “things are very expensive, the fact that dollar is not stable affects everything, the prices of our products have gone up.”

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Kevijf explained that the prices of machines and textile materials have continually been on the rise due to the rise and fall of dollars.

He said most of the items used in the fashion industry are imported and “this has made the prices of materials very expensive.

“Materials like cashmere wool, woodin, ebony and silk are imported. The prices of almost every item in the industry have increased.”

Kevijf also said the unavailability of electricity in the country was crippling businesses in Nigeria.

He cautioned that “if electricity improves in the country, the output of SMEs will drastically improve and add greatly to the Gross Domestic Product (GDP) of the country.”