News

August 25, 2022

MAN rues unfriendly environment for production, wants decentralisation of power generation

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By Ozioruva Aliu, BENIN CITY

THE Manufacturers Association of Nigeria (MAN) has identified the shortage of foreign exchange, poor electricity supply, high lending interest rates, and multiple taxes, and levies as some of the factors confronting the sector.

  Besides, the association called for the removal of 7.5 percent Value Added Tax (VAT) from Automated Gas Oil (AGO)popularly called diesel pending the normalization international supply system “and quickly resolve the complexity surrounding the seamless implementation of the eligible customer initiative to enable manufacturers take advantage of the stranded electricity.”

 National President of MAN, Mansur Ahmed stated this at the 36th Annual General Meeting (AGM) of the Edo/Delta States Branch of the association held in Benin City.  

 On his part, branch chairman of the association,  Okwara Udensi, listed low patronage of made in Nigeria products and congestion at the Lagos ports as factors adversely affecting the productivity of the sector.

Recommending, He urged the government to  decentralise power generation, adopt and implement Executive Order 003 so that Ministries, Departments and Agencies (MDA) can give preference to local manufacturers in their procurement of goods and services.

   “The manufacturing sector is facing a lot of challenges and the Federal Government of Nigeria gas not given the sector the needed support to provide economic growth and development.  The government urgently needs to provide an adequate bailouts for the manufacturing sector to avoid a total collapse of the sector.

   “It is our expectation that these identified challenges be addressed by the government to move the country from an import-dependent to a self-sufficient and export-based one. This can only be made possible with consistency in government policies that will guarantee the required enabling environment so that manufacturing companies are able to operate at minimum capacity.

Mercy Anyiwe, a professor of Economics, the University of Benin (UNIBEN), while delivering her lecture, urged the manufacturers to improve their products with technology so as to have good value in the international market.