MAN President says economic recovery dependent on deployment of policy stimulus

COMFORT EKELEME

The Manufacturers Association of Nigeria (MAN) has said that the nation’s economic recovery is highly dependent on the deployment of policy stimulus supported with a synthesis of domestic growth, export focused and offensive trade strategies.

MAN President, Otunba Francis Meshioye, said this recently in Lagos at the 8th edition of Manufacturers Association of Nigeria (MAN) Reporter of the Year Award/2024 Presidential Media Luncheon.

He said, the opportunity of this gathering has provided a veritable platform for the Association to reecho the pain points of the manufacturing sector, adding that Nigeria’s economy is in a dire state and policy makers, more than ever before, need to be intentional about growing the manufacturing sector.

According to him, this will promote resilience, steady growth and ensure that the sector gains meaningful traction going forward, stressing that there is no country considered as developed that does not give priority attention to the manufacturing sector.

Otunba Meshioye said there is no gainsaying the fact that manufacturing is pivotal to galvanizing and sustaining the economic growth and development of Nigeria.

He said, the government needs to come to the realization that a win for the manufacturing sector is a win for the economy and by extension a better life of the citizenry.

“Government and its agencies should deliberately abstain from taking harmful and inconsiderate policies that lack adequate inputs of key player that would be affected. Permit me to make reference to two of such instances.

 “As we move in this direction, we are confident that as our partners, you will join us in our advocacy drive to actualize a vibrant manufacturing sector, “he said

MAN had urged the federal government expend cost saving from fuel subsidy to deploy a bouquet of production focused policies, backed with more structural measures to combat the peculiar inflationary pressures from insecurity, energy and transport cost.

Also, the association called for overhaul of the power sector and incentive investment in renewables to boost electricity generation and promote energy-cost efficiency.

According to Otunba Meshioye, government should lead by example and give priority to patronage of made-in-Nigeria product in all its purchases and for all government contracts and projects.

He said, government should mandatorily upscale patronage of made in Nigeria products by deliberately reducing the excessive reliance of the country on imported products.

“The three tiers of government should enforce the implementation of the Executive Order 003 in same for their ministries, departments and agencies.

“Government should encourage local sourcing of raw materials through comprehensive and integrated incentives to address the challenges of low productivity and imported inflation,” he said.

Speaking further, Otunba Meshioye urged the federal government to encourage sub-national governments and private investors to leverage the opportunities provided by the Electricity Act 2023 to improve energy security in Nigeria.

Also, he stressed the need to maintain all measures to boost the level of liquidity and degree of transparency in the official forex window even as the backlog of $7 billion forex obligations is being cleared.

The MAN President however, noted that the federal government should manage the floating exchange rate system within an acceptable lower and upper bound, pending the actualization of a net-exporting economy aspirations.

He said, the government should prioritize forex and credit allocation to the manufacturers and reduce the number of Bureau De Change (BDCs) into large and well-established operators to curb their excesses and untoward operations through effective management and supervision,” he said.

Otunba Meshioye also stressed the need to encourage inflow of Foreign Direct Investment into pre-determined and domestic production-enhancing businesses.

To him, the government should intentionally guide diaspora remittances into non-oil sectors, especially manufacturing to aid forex inflows and curb rising inflation.

He said, the Central Bank of Nigeria (CBN) should intensify its collaboration with the fiscal authority; Federal Ministry of Finance and by extension the Tariff Technical Committee (TTC) for proper policy alignment on the appropriate HS Codes for items that Nigeria has sufficient capacity to discourage importation and save scarce foreign exchange.

“The apex bank should allow forex access for importation of vital industrial inputs that are currently not available locally and subject them to backward integration policy that gives priority to a predictable sunset clause.

“MAN offers to be part of a monitoring and evaluation team to ensure that government gets value for incentives offered to achieve this objective.

“CBN should develop a sustainable framework to channel credit interventions into the manufacturing sector, outside the direct intervention.

“Additionally, it should mobilize commercial banks to intentionally provide long term single digit interest loans to the manufacturing sector to fast-track the actualization of a $1 trillion dollar economy.

“We shall undertake more innovative and more strategic advocacy mechanisms that will scale-up the manufacturing sector’s performance and its contribution to the economy,” he said.