COMFORT EKELEME
To address the challenges facing the nation’s manufacturing sector, the Manufacturers Association of Nigeria (MAN) has urged the federal government to create special windows for providing single-digit interest rates to productive sectors.
The challenges faced by the sector includes multiple taxation, limited access to credit, an unstable foreign exchange market, infrastructure deficits, and energy insecurity.
According to the Association, federal government should relax stringent conditions for Small and Medium scale Enterprises (SMEs) to access funding.
This MAN said will help unlock the potential of the manufacturing sector, adding that the government must take decisive action toward the growth and development of the sector.
In a statement tagged ‘Position of the Manufacturers Association of Nigeria on the GDP Report for the Third Quarter of 2024’ as released by the National Bureau of Statistics (NBS), MAN harped on the need to recapitalize the Bank of Industry (BOI) to meet the growing credit demand of industries.
Also, the Association maintained that there is the need to enhance credit information systems and broaden the scope of assets for collateral, implement the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee.
MAN further urged the federal government to reduce the excessive increase in Environmental Impact Assessment (EIA) and Effluent Discharge (EMP) fees imposed by NESREA.
According to MAN, the government should retain the current excise duty of N10 per liter on non-alcoholic beverages to avoid shutting down the industry, saying the government should direct the Central Bank of Nigeria (CBN) to clear $2.4 billion outstanding dollar obligations on FX forward contracts to support manufacturers.
MAN however, urged the federal government to review import duty rates for production inputs, particularly those not locally available, and consider pegging the rate at N800.
“Implement measures to streamline customs procedures, including increased use of technology and decentralization of seaports.
“Prioritize budgetary allocation for infrastructure development, especially along strategic economic hubs. Encourage public-private partnerships for infrastructure development, including roads, railways, and port access roads.
“Direct the Nigerian Electricity Regulatory Commission (NERC) to review the excessive increase in electricity tariffs for Band A customers.
“Prioritize domestic gas supply to manufacturers and enforce Naira-denominated pricing. Ensure transparency in electricity tariff charges, invest in infrastructure and efficiency improvements by Distribution Companies, and introduce outage compensation mechanisms,” MAN said.
In all, while the higher growth recorded in the reviewed period is laudable, MAN noted that it is still relatively modest.
Meanwhile, given the prevalence of high unemployment and poverty, a double-digit GDP growth rate is necessary to achieve inclusive growth that benefits all segments of society.
