James Emejo in Abuja
Founder/Chief Executive, Black Pelican Group, Mr. Michael Owolabi, has identified the limited access to capital, unreliable power supply, shortage of skilled labour as the key challenges hindering the interior design sector.
Speaking at a media briefing to commemorate the company’s 20th anniversary in Abuja, he said that the firm had pursued an ambitious vision of entering the manufacturing sector since 2018.
However, he stated that the current banking practices imposed exorbitant costs on borrowing, making profitability difficult.
He said securing patient capital, which is essential for the long gestation periods in manufacturing remained a critical concern.
Owolabi said, “For you to make any appreciable return, you need to be making a minimum of 100 per cent profit on anything you sell. So it is difficult. And the kind of capital required to build a factory and the gestational period from when you borrow the money to when the factory starts producing, is probably three years. It is very tough.”
He also said access to reliable power was a major issue, noting that for industries such as tiles and ceramics manufacturing, uninterrupted 24-hour electricity was indispensable.
He pointed out that the reliance on diesel generators as an alternative adds significant operational costs, compounding the financial burden.
He said, “The continuous operation of ovens demands a constant power supply” adding that scarcity of skilled technical personnel posed another obstacle.
He said, “The availability of skilled people keeps shrinking as people emigrate to the West.”
Owolabi said, “Our success is due to our people, our commitment to excellence, and our ability to adapt to changing market trends.
“We are excited about the future and look forward to continuing to transform spaces and lives.”
Discover more from HOT SOURCE NEWS
Subscribe to get the latest posts sent to your email.
