The Manufacturers Association of Nigeria (MAN) has urged the federal government to encourage Nigeria-made products to reduce pressure on the foreign exchange market.
MAN said the support will restore investor confidence in the economy.
Otunba Francis Meshioye, president of MAN, made this call at the 4th Adeola Odutola Lecture and the association’s 52nd Annual General Meeting (AGM) held in Lagos.
Meshioye emphasised the importance of patronising made-in-Nigeria goods, noting that it will drive consumption, boost job creation, improve the economy’s gross domestic product (GDP) and the lifestyle of Nigerian citizens.
He said, “The past year posed significant challenges for the manufacturing sector as it grappled with persistent issues of high production costs, high energy costs and frequent hikes in electricity tariffs. inadequate transportation infrastructure and poor logistics services, low patronage of made-in-Nigerian goods, negative perception of made-in-Nigerian goods, high interest, and inflation rates, among others affect the sector.
“These challenges limited our capacity to innovate, expand, create more jobs and contribute meaningfully to the overall performance of the economy but by developing the manufacturing capabilities and leveraging its potential, we can reduce inflation and our overdependence on imports,” the president disclosed.
Samaila Zubairu, president and CEO of the Africa Finance Corporation (AFC), who was represented by Sameh Shenouda, executive director/ chief investment officer of AFC, during his lecture, disclosed that the Egyptian economy is also going through some challenges similar to Nigeria’s.
He noted that since 2021, the growth rate of the manufacturing sector has been flat, impacting foreign direct investment into the sector.
He said, “Fifteen percent of the total continental trade is intra-African trade, 85 percent is with the outside world. We can’t even trade among ourselves rather we prefer importing from outside.”
Commenting on the way forward, Segun Ajayi-Kadir, the director-general, MAN, said the association, through a series of engagements with government and agencies at different levels, have submitted several policy recommendations.
According to him, MAN has advocated for a special foreign exchange window for manufacturers, adequate power supply to industries, and a transparent electricity tariff mechanism.
Ajayi-Kadir stated that the association has called for a reduction in multiple taxes and levies, as well as intervention funds to mitigate the effects of subsidy removal.
“Government must also ensure sound foreign exchange management and stability, encourage export diversification and promote exports of manufactured products.
“Government must develop strategies to reduce dependence on imported raw materials by promoting local sourcing and import substitution, stimulate consumer demand and promote Buy Made-in-Nigeria” campaigns,” he said.
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