Cutix Plc said the high cost of forex at the parallel market is adversely affecting the company’s business and other manufacturers in the country.
Chief Executive Officer, Mrs Ijeoma Oduonye, who disclosed this at a press conference to mark the company’s 40th-anniversary celebrations, listed other challenges affecting the industrial cable/wires manufacturer over the years.
Some of these challenges include unstable government policies, multiple taxations, a turbulent macroeconomic environment, poor infrastructure, difficulty in sourcing raw materials due to high rates of foreign exchange and the influx of substandard products in the market.
Impacts of forex: Oduonye said the negative impacts of macroeconomic factors like the high forex rate make Nigeria a very difficult place to do business.
- “On forex, two days ago we woke up with N800 to the dollar, by midday it was N8.20, before the closing of business it was N8.40 and yesterday it was N8.60 per dollar and if nothing is done, it is expected to keep on moving.
- “One can only imagine what it looks like running a business in that kind of environment, if you ask me I will say it is a very turbulent microeconomic environment for us. And we are not insulated from the difficulties that go with such a situation, but we are surviving, forging ahead despite the unfavourable operating environment,” she said.
The company’s anniversary: While commenting on the company’s historic 40th anniversary, Mrs Oduonye began by recalling how the idea for Cutix Plc was conceived in 1981 by Engr. (Dr.) Ajulu Uzodike. The company was subsequently incorporated on November 4, 1982 as a private limited company, with N400, 000 startup capital raised by about 18 of Uzodike’s friends and family members.
This was followed by a public offer in 1986 through which the company raised N1.6 million from the capital market. On August 12 1987, Cutix Plc’s stock was listed on the Second-Tier Securities Market of the Nigerian Exchange (NGX) Limited, making it the first private company from Eastern Nigeria to be quoted on the Exchange.
In 2008, the company organically migrated to the main board of the NGX first-tier securities market and currently has about 8,495 shareholders.
Cutix braved odds: Oduonye noted that the company has braved all odds to add value to a commonwealth pool shared by all stakeholders of Cutix, including shareholders, the board of directors, management staff, other staff members, the government, customers, neighbours, and the general public.
The CEO said Cutix Plc, known for cables and wires, has continued to blaze the trail in the manufacturing sector amidst the over-the-roof challenges bedevilling the sector in Nigeria. She said:
- “It remains steadfast to its corporate mission of powering and illuminating the world while aiming at actualizing its corporate vision of being one of the top three providers of electrical energy products and services in the world.”
- “Without prejudice to anyone or company, Cutix is already ranking as the best in terms of product quality in the country and surely not far off in respect of the top three in the world.”
Factors responsible for success: The CEO also attributed the success of the company to the charter it put in place at its inception which, among others, includes: Being very profitable, fast growth, high quality, ethical, socially responsive, international (with Nigeria as its home base) manufacturer of electrical wires and cables and move rapidly to exploit emerging technologies and capabilities in product improvements and diversification.
Other factors include the use of Nigerian manpower and as much Nigerian value added in materials and technology and the use of internally generated funds to grow and provide returns fairly to all stakeholders.
The founders’ remarks: Dr Uzodike, who shared his experience of running the company for several years, said that it is now time for discerning citizens of the country to sit together and ask questions on how to create a commonwealth for the nation, like what obtains in China and other developed countries of the world.
