Finance

November 5, 2012

Manufacturers commend Ogun State Govt over 40% land acquisition rebate

By NKIRUKA NNOROM

The Ogun State branch of the Manufacturers Association of Nigeria, MAN, has commended the Executive Governor of the state, Senator Ibikunle Amosun, over his effort at repositioning the state’s economy, especially the 40 per cent rebate on land acquisition granted investors.

They, however, called on the state government to step down on the multiplicity of levies imposed on them by its agencies.

The association’s Chairman, Dr. Dapo Ogutuga, who spoke at the 27th Annual General Meeting, AGM, at Sango-Ota, Ogun State, said the governor’s efforts at rehabilitating the entire road network deserves commendation.

He said the association was also aware that “your administration is committed to promoting private investment, determined to develop and sustain investors’ confidence as well as implement the programmes which the community of investors would benefit from.”

Notwithstanding, he said that his members face mountainous problems in their day-to-day businesses, ranging from multiplicity of taxes, levies and other charges that are imposed on them by various tiers of government in the state, especially Local Government Councils, Ministries, Departments and Agencies.

“The continuous introduction of taxes and levies by these organs of government and the manner in which they go about their collection is, to say the least, unorthodox and if anything but civil.

“Their actions pose great challenges to business planning and execution of business projection. For instance, the state government recently revised Deed of Lease Agreement from 10 to five years while at the same time revising the land charge from N62, 000 to N242, 000 per annum.

“We are appealing to your Excellency to kindly look into these and other issues that are affecting the manufacturing sector so that factories operating in the state can function optimally and thereby perform its role of wealth creation, job creation, social and economic development,” he said.

He listed other challenges being faced by manufacturers in the state to include: very poor infrastructure, especially water supply and electricity in industrial estates, stoppage and molestation of vehicles conveying raw materials and finished products on the road in respect of various levies, most of which unauthorised as well as over-lapping of functions by various organs of government that visit factories at different times demanding similar things.

Pledging the support of his association to the state’s attempt of making the environment more investors’ friendly, Ogutuga said the state has continually recorded increased presence of manufacturers, despite the daunting challenges.