BY NKIRUKA NNOROM

The manufacturing sector’s contribution to Gross Domestic Products, GDP, growth in the country is expected to be within the region of 15-18 per cent in the next five years, says the President, Manufacturers Association of Nigeria (MAN), Chief Kola Jamodu.

This is even as he said that there is an urgent need for concessions on imported raw materials that are inputs for the production of basic necessities, arguing that initiating concessions for such goods would have a direct positive impact on the welfare of the larger society.

Speaking recently while presenting a Blueprint for accelerated development of the manufacturing sector at the MAN’s 40th annual general meeting in Lagos, Jamodu stated achieving the figure (15-18% GDP contribution) would be a walk over if the recommendations in the blueprint were considered and approved.

He explained that the document was based on an integrated approach that addresses the important role of manufacturing, particularly SMEs in the generation of substantial employment.

He said, “This document reviews the status of the manufacturing sector in Nigeria and identifies the extent of the burden that manufacturers have carried over the years. It sets out an action plan would accelerate the development of the manufacturing sector in the context of vision 20:2020, provides a framework and formulates a vision for the sector in the short medium to long term.

“The document also provides general sector-specific action plans and addresses critical questions relating to the manufacturing sector as well as proposes a bold set of reforms which if embraced, are capable of unleashing the full potentials of manufacturing in the economy.”

He noted that there is an urgent need for the restructuring of government spending in favour of capital expenditure in view of huge infrastructural deficit confronting the nation, as part of recommendations contained in the blueprint.

“The relatively low performance in capital budget which hovered around 67 per cent as at mid-November, 2011, when compared with almost 100 per cent implementation of 0f recurrent expenditure is not developmental friendly.

“The trend of unspent capital allocations which are usually returned to the treasury is blamed on delayed budget approval processes. There is need to revisit this issue for the good of the economy,” he said.

The association also recommended, “To facilitate free flow of goods and persons, government should rehabilitate the existing road network, construction of new ones should be given priority and the railway system should be completely overhauled and privatized.

“the federal government should put in place a revolving intervention fund to meet the long-term funding needs of the manufacturing sector which Deposit Money Banks are unwilling to provide.”

Other recommendations made the association include further push for patronage of Made-in-Nigeria products, channeling more efforts to tackle security challenges, and pursuing of power sector road map with greater vigour.