[CAVIE-ACCI] In a bid to survive the supply chain disruptions, Nigerian manufacturers were forced to improvise. One of the biggest challenges has been the issue of supply chain management.  A lot of the raw materials used in Nigeria are imported from China. Unfortunately, China has mostly been shut down due to the pandemic and as such, have been unable to meet demands.

The COVID-19 pandemic has changed quite a number of things in the ways Nigeria’s consumer goods and industrial markets operate. This was disclosed by a Partner and Head of Consumer & Industrial Markets at KPMG Nigeria, Obi Goodluck. Speaking to CNBC Africa, Goodluck stressed that the pandemic and subsequent lockdown that happened throughout April, adversely impacted many manufacturers.

One of the biggest challenges has been the issue of supply chain management, he said. He also noted that a lot of the raw materials used in Nigeria are imported from China. Unfortunately, China has mostly been shut down due to the pandemic and as such, have been unable to meet demands.

In a bid to survive the supply chain disruptions, Nigerian manufacturers were forced to improvise. Many of them resorted to sourcing raw materials locally or risk being shut down completely. Goodluck said: “One of the biggest impacts of the COVID-19 pandemic and lockdowns across global economies is the issue if supply chain management by business and supply chain management especially. What has happened is that companies needed to come up more innovative ways if raw material sourcing.

“Specifically from the Nigerian point of view, we will no longer reply on importation of raw materials. As it were, this pandemic started from China and over 80% of Nigeria’s raw material imports come from China and the Asian countries. With the lockdown even in China, that became an issue. As such, companies had to come up with alternative means if raw material sourcing. Those who already imported raw materials prior to the lockdown relied on their stock until they ran out…”

Goodluck then added that post COVID-19, manufacturing companies in Nigeria must make tough decisions on how to adequately resolve the issue of supply chain disruptions over-reliance on China. This is the only way to forestall future disruptions, he said. Finally, he observed that even the ways companies distribute their goods to the final consumers have also been affected by the pandemic. To this end, companies will no longer reply on the traditional channels of moving their products to their consumers, he said.

The Editorial Staff (with NAIRAMETRICS and HMB)