COMFORT EKELEME
The Manufacturers Association of Nigeria (MAN) has recommended ways the government can restore macroeconomic stability, achieve robust economic growth, enhance the business environment and improve the well-being of all citizens.
In the MAN CEO’S Confidence Index (MCCI) report, signed by the Director General, Mr. Segun Ajayi-Kadir the government should honour the unsettled $2.4 billion forex forward contract to further increase manufacturers’ confidence on the market.
The association maintained that the government should suspend the 15per cent hike in port charges and the 4per cent FOB levy pending wider consultation with the Organised Private Sector of Nigeria and the Presidential Fiscal Policy and Tax Reforms Committee.
According to MAN, the government should facilitate the commencement and successful implementation of the National Single Window (NSW) project to aid trade, reduce cost of doing business and boost the revenue base of the NCS without further hike in import duties.
MAN stressed the need to pause interest rate hikes and actively deploy moral suasion for commercial banks to prioritize lending to manufacturers at single-digit concessionary interest rates.
The report further recommended increase of the capital base of the Bank of Industry to meet the credit demand of industries, also to suspend further hike in electricity tariff and review the previous hike to 100per cent of the base price.
Also, the report highlighted the expedite passage and implementation of the four tax reform bills aimed at restructuring, streamlining and establishing unified tax processes.
“Enforce the implementation of the VAT and import duty on food and pharmaceutical inputs. Set an annual threshold for the importation of non-locally available products and set respective timelines to domesticate their production.
“Fast-track the enactment and implementation of the Raw Materials Processing and Local Production Protection Bill which proposes a threshold of 30 percent value addition on raw material exports.
“Leverage the country’s recent partnership with BRICS to further diversify its export markets and products and reduce dependence on the EU market.
“Develop KPIs, establish feedback mechanisms and conduct periodic audits to ensure the successful implementation of the National Single Window in compliance with global cost-effective standards.
“Push for the enactment of a Bill that ensures 60 percent of Ways and Means are expended on the patronage of local industries in order to boost production capacity and avoid stoking inflation.
“Develop a transparent template for the determination of the exchange rate for calculating customs duty,” MAN said.
