•Slam policies of discretionary waivers

By Franklin Alli

Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala

The Manufacturers Association of Nigeria (MAN) has lauded the Federal Government for reforming its incentives policy to benefit a whole sector rather than issuing discretionary waivers for individual firms.
MAN President, Chief Kola Jamodu, said government’s broad base incentives to a whole sector has brought transparency in the policy and created a level playing field for all players.

“There is a clear evidence of the positive impact of the sector- based incentives. Incentives and concessions given to the Cement industry have contributed to the phenomenal increase in national cement production from less than 2 million tons in 2002 to over 20 million tons in 2013. As a result, from being a net importer, Nigeria has become a net exporter of cement. This was achieved in less than a decade thanks to the enabling environment fostered by government policies,” he said.

According to him, the incentive policy has been in place through several administrations but the President and his Economic Management Team deserve credit for streamlining the policy to leverage it for attracting investment in the priority sectors.

Chief Jamodu added that special intervention funds of the Central Bank of Nigeria (CBN) disbursed through the Bank of Industry have also helped revive a good number of ailing industries and SME’s.
He added that incentives are also helping to boost trade and investment in the non-oil sector and generating employment in agro-allied industries.

Explaining how the incentives are impacting positively on manufacturing and the economy, he said: “Incentives are needed to generate investment in the productive sector – manufacturing and agriculture. Waiver of customs duty and VAT on import of plant and machinery is required to make our industries competitive. Duty and VAT exemption on equipment used in gas production has contributed to reduction in gas flaring and growth in gas-to-power initiative aimed at boosting power supply.”