The Chairman, Manufacturing Association of Nigeria (MAN) Edo/Delta branch, Ehizogie Osadolor, has said that most manufacturing companies in Nigeria are operating below 30 per cent of their capacity due to some government’s policies which have crippled the sector.
Osadolor said this at the 38th annual general meeting of the Edo/Delta branch yesterday in Benin with the theme ‘Igniting Economic Growth and Development through Improved Competitiveness of Made-In-Nigeria Goods’.
He listed the policies affecting the manufacturing sector, including high electricity tariffs, high exchange rate, high lending interest rate, multiple taxes and levies, removal of fuel subsidy, floating of the naira, exchange rate policies and increase in monetary policy rate, among others.
“As a result of the high exchange rate, manufacturers were unable to import the raw materials needed for production, leading to a considerable reduction in capacity utilization of many companies to 30 per cent.”
Osadolor said it is worrisome that the key operational challenges identified over the years by the association are yet to receive the required government attention, and the economy gradually grounded.
He said for manufacturers to overcome the challenges and keep the sector going, “the government urgently needs to give priority attention to the manufacturing sector by providing adequate bailouts for the sector and putting the necessary infrastructure in place to avoid a total collapse of the sector.
“They should encourage the patronage of made-in-Nigeria goods to reduce pressure on the dollar which is needed for the importation of foreign goods. This will increase the production capacity of local manufacturers and reduce unemployment in Nigeria.”
On his part, MAN President, Francis Meshioye, also expressed concern that the policies of the government are crippling the manufacturing sector of the nation’s economy.
Meshioye, represented by the Director-General of MAN, Segun Ajayi-Kadir, appealed to the governments of Edo and Delta states to stop the multiple taxation and harassment by the local government revenue agents and some MDAs in the states.
“We further appeal that it is made statutory that Ministries, Departments and Agencies of government in your states patronise made-in-Nigeria goods by issuing executive orders in that regard. This will encourage local manufacturers and also create more jobs.
He noted that MAN’s discussions at the meeting will enhance its advocacy content and point to the direction the government needs to follow to jointly resolve the challenges militating against the performance of the manufacturing sector.
Daily Trust
