By Franklin Alli

ARE you a manufacturer or distributor of Made-In –Nigeria products? Also, are you operating in the agribusiness sector of the economy?

If yes, there is something in the Federal Government’s Budget of N7.2 trillion for next year that should be of interest to you.

President Muhammadu Buhari presenting the 2017 Budget before a joint session of the National Assembly on Wednesday, December 14, 2016.

The budget was presented by President Muhammadu Buhari to the National Assembly last week.

Highlight of the budget showed that it focused to “Boost increase in made in Nigeria products and to “Boost increase in productivity in Agriculture.”

Also, an examination of the proposed budgetary allocation to various sectors of the economy, showed that government earmarked the sum of N81 billion to the ministry of Industry, Trade and Investment. Under the ministry, there are over fifteen parastatals and agencies such as Standards Organisation of Nigeria, SON; Nigeria Export Promotion Council, NEPC, and Nigeria Export Processing Zone Authority, NEPZA; Bank of Industry, etc.

Welcome intention

The big picture is, there is a Federal Government policy which encourages ministries, departments and agencies, MDAs, to patronise local manufacturers in order to save hard earned foreign exchange.

So, before government release the fund to these organisations, you had better begin to think of how you can position your company and products to attract patronage from them.

Especially if you are into textile, wine, production of sports equipment, stationery, ball point pens, furniture, etc.

Eke Ubiji, Executive Secretary, Nigeria Association of Small and Medium Enterprises, NASME, noted “The focus of the budget to boost increase in made in Nigeria products is a welcome intention. What remains is its religious implementation and execution.”

He also said: “Paying attention to increase in Agricultural production is very good. This will help the government’s plan to diversify the economy and increase in the export of Nigeria products.”

Also, Manufacturers Association of Nigeria, MAN, in its review of the budget, said: “MAN has appraised and considered the 2017 Budget capable of helping the economy to recovery due principally to the importance accorded Capital Expenditure with the value of N2.24 trillion which accounts for 30.7 percent of the total budget.”

According to Dr. Frank Jacobs, MAN President, Manufacturers are pleased at the emphasis placed on resource-based production and conscious patronage of Made-in-Nigeria products by the Government.

“However, since the budget intends to generate a total sum of N1.373 trillion from Company Income Tax, VAT, Customs & Excise Duties and Federal Account Fees for the period, MAN is of the opinion that tax rate should not be increased and no new tax should be introduced; rather the government should reduce the current Company income tax and widen the tax net. We also call on the National Assembly for speedy consideration and passage into law the 2017 appropriation bill.”