The Group Managing Director and Chief Executive Officer, Eat ‘n’ Go Limited, Mr. Patrick McMichael, has lamented over the rising cost of doing business in the country, noting that lack of basic infrastructure such as power, rising cost of diesel, is hitting deep into profit margins of manufacturing outfits in the country.
McMichael who stated this during a press conference to celebrate its 10th year anniversary operating in Nigeria, called on the federal government to do what is possible to help businesses stay afloat.
“My number one belief for Nigeria’s greatest success is power. Electricity, constant supply is what this country needs first and foremost and then anything else would fall in line and that is just my view. I look across our business and the challenges that we have today in business and what is a challenging time for the globe. Our biggest challenge right now is power and the cost to generate power to run our shops across the country shows and the increased cost that we have faced this year which has taken about N2 billion out of our profitability just this year and this is not just us but every single manufacturing outfit in the country,” he lamented.
He added: “This is just the direct cost, but for the indirect cost of that is oil touches every single thing and every single part of our input of supply chain is affected by the rise in cost of diesel. The cost of transportation, production. Really, the most important part of the puzzle from my perspective is power. We really need to get power right in the country.”
He however, stated plans of the country’s expansion programmes across the country and in Africa at large, saying that Eat ‘n’Go is approaching 190 stores across pan Africa with a target to hit 200 stores in the coming years.
“We are approaching 190 stores where167 of those stores are in Nigeria. We currently have a number of stores under construction and under development to see us out through this financial year,” he said.
He noted that so far, the company has invested over N26 billion in assets across the length and breadth of Nigeria, with all its financial supplies sourced domestically.
According to him, the company has also increased its local content to about 85 per cent, saying the move is critical to remain profitable and sustainable in business.
“For any business to survive in Nigeria, you have to get your supply chain localised. When we first started operations, 100 per cent of what we served was imported and you know that is not an easy thing to do in Nigeria to remain profitable. In the last ten years, the team has worked very hard to localised 85 per cent of what we served to be produced locally,” he added.
