Ijeoma Odunoye, Chief Executive Officer of Cutix Plc, has shed light on the daunting challenges confronting local manufacturing firms in Nigeria, citing soaring interest rates, inflation, insecurity, and an influx of substandard imported goods as key obstacles. In a detailed conversation with Oluwakemi Abimbola, Odunoye elaborated on how her company is navigating these hurdles and called for urgent government intervention to protect and promote indigenous industries.
Navigating a Difficult Economic Landscape
Odunoye described the current business environment in Nigeria as turbulent, emphasizing the crippling impact of excessive borrowing costs. “Interest rates on loans now hover around 33 to 37 percent, with the average near 35 percent. Imagine securing a loan and having to pay a third of it just in interest — it’s unsustainable for businesses,” she lamented.
She also highlighted foreign exchange scarcity as a significant challenge, especially for manufacturers like Cutix that rely on imported raw materials. “Obtaining foreign currency from the Central Bank is a major bottleneck. It is perplexing that Bureau De Change operators have access to forex while manufacturers struggle to get the funds necessary to keep operations running.”
Combatting the Menace of Substandard Imports
Odunoye stressed the urgent need for regulatory enforcement to curb the flood of inferior foreign products undermining the local industry. “Substandard goods entering through our borders pose serious risks, not only to manufacturers but also to the safety of consumers. Without consistent power supply, these inferior products escape detection, and the public unwittingly puts their lives in danger.”
She warned that without decisive government action, local manufacturers could be outpriced in regional markets where imported goods dominate due to lower costs. “If local products remain costlier than imports, many indigenous manufacturers will be unable to compete in broader African markets. This is not just an industry problem — it has social consequences. Job losses lead to increased crime and economic instability.”
Security and Infrastructure Concerns
The CEO also pointed to insecurity and poor infrastructure as serious impediments to business growth. “Operations in parts of the South-East have been disrupted by sit-at-home orders and sporadic violence. Additionally, dilapidated roads inflate logistics costs and delay deliveries, reducing efficiency and competitiveness.”
Celebrating Excellence and Company Culture
Reflecting on her recent accolade as ‘Most Successful Female Entrepreneur/Excellent Performer as a Female CEO’ by the Nigerian Association of Small and Medium Enterprises, Odunoye credited the achievement to teamwork. “This recognition belongs to our board, management, and every staff member. I have grown with the company since 1992, and our workforce of about 400 people, including permanent and casual staff, reflects our commitment to quality and stability.”
She noted that consistent financial performance, including regular dividend payments and employee welfare programs, has been key to the company’s success and staff loyalty. “At Cutix, we ensure our employees are valued and supported, which is why many have remained with us for decades.”
A Vision for Growth Amid Challenges
Looking ahead, Odunoye remains optimistic about Cutix’s future, aiming to place the company among the top three global providers of electrical energy products. “With our high-quality products, dedicated team, supportive shareholders, and loyal customers, this vision is attainable despite current challenges.”
Words of Wisdom for Manufacturers
She urged fellow entrepreneurs to prioritize quality and adhere to industry standards. “Quality is what distinguishes a business. Although our products may be priced higher, customers trust Cutix for durability and safety. This commitment to quality is what keeps us competitive.”
Impact of Currency Volatility
Odunoye acknowledged the negative effects of naira volatility on planning and costs. “Fluctuating exchange rates make it difficult to budget effectively. What seemed affordable at the start of a transaction often becomes prohibitively expensive by payment time.”
Adapting to Inflation
Despite inflationary pressures, Odunoye noted that businesses and consumers adjust their behaviors accordingly. “While some reduce consumption of non-essential items, essential sectors like food and healthcare continue to see demand. Companies must be resilient and strategic to maintain profitability.”
Final Reflections
Summing up, Odunoye emphasized the critical importance of quality in all sectors. “Compromising on materials not only leads to financial loss but can cost lives, as seen in cases of building collapses. Let quality be the foundation of every industry to ensure safety and sustainability.”
