Economic challenges: MAN harps on policy clarity, wants FG to engage private sector stakeholders

COMFORT EKELEME
Following the persistence economic challenges, the Manufacturers Association of Nigeria (MAN) has called for policy clarity on the side of the federal government, adding that the government should engage in constructive dialogue with stakeholders in the private sector.
In its 2023 Half Year Review of the Economy, MAN noted that the government should provide clear and consistent policies to provide certainty for businesses, stressing that frequent policy changes and uncertainties could hinder long-term investments and growth.
According to MAN, there is need for the government to conduct a comprehensive economic impact assessment of the fuel subsidy removal, exchange rate changes, and other policy measures.
MAN said, this assessment should identify potential challenges and opportunities for the private sector and inform further adjustments to the policies if necessary.
On access to credit, MAN urged the government to ensure effective implementation of the plans to support the manufacturing sector and Micro Small and Medium Enterprises (MSMEs).
Also, the association maintained that the government should provide streamlined processes for accessing credit and preferential terms that are suitable for different types of businesses.
While addressing the issues around infrastructure development, MAN said the government undivided attention and priority be paid to infrastructure development projects to enhance transportation, logistics, and energy supply.
“These improvements will positively impact on businesses’ efficiency and reduce operational costs. While supporting the introduction of a new national minimum wage, we emphasize the need for a balanced approach to ensure businesses can manage labor costs without compromising employment stability.
“We recommend transparency and efficiency in the disbursement of funds and implementation of support programmes. This will ensure that the resources reach intended beneficiaries in a timely manner.
“Government should establish a monitoring and feedback mechanism to assess the effectiveness of the implemented policies and make necessary adjustments based on real-time feedback from businesses. We recommend regulatory reforms to improve the ease of doing business in Nigeria. Simplified and efficient regulations would attract more investments and foster a conducive business environment,” MAN said.
To mitigate the short-term impact of the policy changes on vulnerable groups, MAN noted that the private sector advocates for the government to implement social safety nets or targeted support programs to protect those most affected.
MAN further recommended that the government should articulate a clear long-term economic vision that outlines the pathway to sustainable economic growth, job creation, and poverty reduction.
“By providing these recommendations, we aim to work collaboratively with the government to ensure that the economic reforms are balanced, sustainable, and beneficial for all stakeholders,” it said
While giving other specific recommendations, the association called for prioritized forex intervention for raw materials and machinery for industries and improved forex allocation to the industrial sector.
Also, the association wants the government to develop a roadmap for improved power supply, including off-grid solutions and private sector-driven independent power projects, promote renewable energy sources such as solar and wind, resuscitate national refineries for local fuel production, review domestic gas pricing, encourage investment in gas aggregation to reduce gas flaring, and address the oil theft to optimize crude oil production based on OPEC quotas.
Other recommendations by MAN include incentivize local raw material development, especially Active Pharmaceutical Ingredients (API) and basic chemicals, focus on backward integration and resource-based industrialization, publish a list of approved harmonized taxes and levies for the manufacturing sector, implement and enforce the harmonized taxes and levies, develop a framework for transition of informal sector operators to the formal sector and to expand the tax base without increasing the burden on existing taxpayers.