One-digit interest loan will boost production output, stimulate economy – MAN tells govts

The Manufacturers Association of Nigeria (MAN) has said that the provision of one-digit interest-rate loans to manufacturers by governments will boost their production output and stimulate the economy.

Ehizogie Osadolor, the Edo/Delta branch chairman of the association, made the call at the 38th Annual General Meeting of the body in Benin City.

Osadolor, however, opined that most manufacturing companies are operating below 30 percent of their capacity as a result of some policies of governments particularly those of the Federal Government.

He lamented that manufacturers were unable to import the raw materials needed for production due to the high exchange rate leading to a considerable reduction in the capacity utilisation of many companies.

He noted that for manufacturers to overcome the challenges, the government urgently needs to give priority attention to the manufacturing sector by providing adequate bailouts for the sector and put the necessary infrastructure in place to avoid a total collapse of the sector.

“It is very worrisome that key operational challenges identified over the years by the association are yet to receive the required attention by the government and the economy is gradually grounded.

“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.

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“The government should eliminate excessive customs duties, levies, and overlapping to boost the regulatory mandates for the manufacturing sector.

“The number of taxes and levies payable to the Federal, State, and Local Governments should also be harmonised and streamlined to a reasonable number for companies to pay,” he said.

The MAN chairman also called on governments to invest more in renewable energy such as wind, solar, biomass, and small Hydro to support businesses.

In his address, Francis Meshioye, president of the association posited that the policies and reforms of government are crippling the manufacturing sector of the nation’s economy.

Meshioye listed the policies and reforms to include the removal of fuel subsidies, floating of the Naira, exchange rate policies and increase in the monetary policy rate, and high tariffs among others.

The MAN president represented by

Segun Ajayi-Kadir, the director general of the association noted that the policies and reforms have created challenges that have negatively impacted the manufacturing sector.

He explained that the impact of government policies has made the theme of the AGM, “Igniting Economic Growth and Development through Improved Competitiveness of Made-In-Nigeria Goods,” apt and timely.

He, however, called on the governments of both Edo and Delta states to ensure that this relationship between them and MAN is deepened and sustained.

Meshioye appealed that the harassment on multiple taxations by the Local Government Areas revenue agents and some Ministries Departments and Agencies (MDAs) in both states be addressed.

According to him, we are quite familiar with challenges that accompanied the recent government reforms and policies such as the removal of fuel subsidies, floating of the Naira, exchange rate policies, and increase in the monetary policy rate, among others.

“These challenges have negatively impacted the manufacturing sector in a great proportion,” he added.

He noted that MAN discussions would 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.