Energy crisis: MAN wants FG to invest more in power sector

COMFORT EKELEME

The Manufacturers Association of Nigeria (MAN) has urged the federal government to carry out further investment in the electricity value chain and commit to adding 10000MW to the current electricity distributed in the country.

This is even as MAN said the federal government should as well to address the foreign exchange and energy crisis as well as other manufacturing challenges facing businesses in Nigeria currently.

In his keynote at the 2022 Commerce & Industry Correspondents Association of Nigeria (CICAN), annual workshop/ Award& Recognition, Director General of MAN, Segun Ajayi-Kadir said these challenges should be adequately addressed in order to arrest further degeneration in the performance of the sector.

Themed, “Manufacturing: Despite FX & Energy Crisis”, Ajayi-Kadir noted that there is a need to embrace and support significant development of energy mix and renewable, adding that the country has huge potential for Solar and Wind.

According to him, there is need for allocation of significant proportion of available foreign exchange to the productive sector, particularly manufacturing, stressing that there is need to expand the scope of road infrastructure, development and refurbishment investment tax credit scheme.

According to him, Incentivization of investment in local development of raw materials, and suspension of the 15per cent levy on imported wheat; should be considered.

He maintained that the manufacturers are concerned about the increase in the cost of energy, acute shortage of forex, and the continuous depreciation in the value of the naira, including other familiar challenges of the sector.

The MAN DG stated that the primary driving force for sustaining production is the patriotism and resilience that the Nigerian manufacturers process while expressing optimism that these challenges would eventually be addressed.

He urged the federal government to address prevailing concerns of the beleaguered manufacturing sector, vis Non-implementation of the planned increase in excise duty on non-alcoholic and alcoholic beverages,    tobacco, wine, and spirits.

“The increase is in violation of the roadmap set by the government itself for the period 2022-2024. Already, this increase is negatively impacting the performance of the sector and further increase will bring it to its knees and lead to divestment and closures. Also, the envisaged revenue boost by the government will not be realized.

“The manufacturing industries in the Harbour industrial sector in Onitsha that were devastated by the flood recently should be assisted to recover from their colossal losses and preventive measures taken to forestall future occurrences.

“The committees of the National Assembly that extend their oversight functions to manufacturing industries and require their Chief Executive Officers (CEOs)  to produce tons of documents and evidence of compliance that are readily available with the relevant statutory regulatory agencies should be stopped. This is an unnecessary burden, diversion, and very expensive venture,” he said.

Ajayi-Kadir also noted that existing national refineries should be resuscitated to produce fuels locally; adding that there is a need for a review of the gas price for domestic consumption to be in sync with an export price.

He also advised that the government should publish the list of approved harmonized taxes and levies for the manufacturing sector by the Joint Tax Board (JTB) to address the issues of multiples taxes and levies, and crafting of a national response and sustainability strategic plan to avert the looming economic crisis and shortages that would arise from the full impact of the Russian- Ukrainian war.