Fuel subsidy: MAN tasks incoming govt. on definite stand

COMFORT EKELEME

The Manufacturers Association of Nigeria (MAN) has urged the incoming government to take a definite stand by ordering the removal of fuel subsidies.

MAN in a statement signed by its Director General, Segun Ajayi- Kadri said the decision should be outright, adding that immediate steps should be taken to commence removal.

According to the association, there is a need to announce a special policy initiative to address the revival of closed and distressed industries, particularly in the northeast where 60per cent of its member companies have closed.

MAN also said that the incoming government should craft and announce a special policy initiative to leverage diaspora expertise and investment to address evidence gaps and help to boost the performance of the economy.

Also, the Association recommended that the government should direct all Ministries, Departments, and Agencies (MDAs) of government to unfailingly comply with Executive Order 003 on the patronage of made-in-Nigeria products. In this regard, there should be a strict application of the margin of preference, effective monitoring and periodic evaluation of compliance, ` and appropriate sanctions meted out to MDAs acting in breach of the executive order.

The association further noted that the government should announce a special policy initiative to de-risk manufacturing and unleash adequate funding for the sector through effective funding of special lending windows.

Meanwhile, the Association is desirous to see all recommendations implemented by the new administration.

“We believe that if the prosperity of Nigeria is paramount, then the productive sector should be given maximum priority for the general good of all in terms of wealth and job creation for the Nation,” MAN stated.

MAN however, said it assumes that the new government will move swiftly to fulfill those promises they made and thereby justify the confidence reposed by the electorate, stressing that its expectations, as manufacturers, are coming against the backdrop of a reduction in the Manufacturers CEO Confidence Index (MCCI) in the last quarter of 2022.

In the latest survey for the fourth quarter of 2022, the aggregate index score declined from 55.4 points in Q3 2022 to 55.0 in Q4 2022. This shows that CEOs of manufacturing industries have less confidence in the economy.

“To start with, we should expect that the transition should take place in a peaceful atmosphere and all the contestations should follow established and legal processes.

“We can then talk of a smooth and effective transfer of governance and handover to the new administration. Effective in terms of ensuring that the transition committee works well with the incoming team and that the new administration can hit the ground running. So, we should expect that there is minimal downtime in governance. Seeing that the new administration settles down and makes the needed appointments in good time and selected the right people.

“We have unemployment, which is prevalent amongst the youth at 33.3per cent, even as the Gross Domestic Product (GDP) annual growth rate is about 3.52per cent. Today, the government debt to GDP ratio is 37per cent from 34.5per cent last year.

“The latest addition that is disrupting the economy in a profound manner is the redesign of the national currency and the attendant scarcity, an otherwise excellent monetary control measure by the Central Bank of Nigeria (CBN), but for the inexplicable poor management of the transition process.

“So, if the problem lingers, the new administration should swiftly address it, without throwing away the baby with the bath water.

For a better society

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