Manufacturers want FG to build infrastructure, harmonise regulatory functions

The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to harmonise the role of various government regulatory agencies in order to eliminate conflict of roles and multiple charges.

At the 45th Annual General Meeting (AGM) held by MAN, Apapa branch in Lagos, Frank Udemba Jacobs, president of MAN, said there is a need for the government to develop the infrastructure base of the economy by actively involving the private sector through Public Private Partnership (PPP).

Jacobs, who was represented by Isaac Ade Agoye, national vice president of MAN, said the need arises to improve energy supply and review the privatisation exercise as the current owners do not have the capacity to deliver effectively.

Jacobs advised the government to focus on implementing necessary policies and strategies aimed at unleashing the full potential of the Nigerian manufacturing sector and rely on the ideas and inputs of manufacturers at all stages of formulation and implementation of new industrial policies.

“Implement strategic plans aimed at boosting manufacturing activities, based on the Nigerian Industrial Revolution Plan (NIRP) and the National Enterprises Development Programme (NEDEP).

Change course of SMEs by facilitating market access and integrating Nigerian manufacturers and service providers into regional and global value chains,” Jacobs said at the AGM themed, “Economic Recession and the Future of Manufacturing in Nigeria.”

Also speaking, Babatunde Odunayo, chairman of Apapa branch of Manufacturers Association of Nigeria, said: “Manufacturers currently face up to N500 billion in exchange difference between the approved Form M/LC established rates and the flexible market rates of $320/$1. This is a huge loss that manufacturers are to bear whereas the related goods have been sold before the commencement of the new exchange rate discovery system.”

Odunayo said the huge loss which occurred through the introduction of the new rates has resulted in many of its members closing shops, losing investments and employment in the sector, adding that the exchange losses would result in requiring additional working capital to shore up cash difference between N320 and N197 in order to be able to buy the required forex volume at the flexible exchange rate market.

Responding, Okechukwu Enelamah, minister of industry, trade and investment, who was represented by Bede Obayi, director of compliance and enforcement, said “the present administration is committed to the vision of a prosperous and dynamic economy for our great country.”

Enelamah mentioned the continual pursuit and implementation of the Nigeria Industrial Revolution plan (NIRP) and SME development programmes, saying that the Federal Government is not unmindful of the challenges facing the manufacturing sector.

 

ODINAKA ANUDU