A former chairman of the Nigerian Economic Summit Group (NESG), Sam Ohuabunwa, has called on the Federal Government to formulate policies that promote manufacturing and exports.
Ohuabunwa equally urged members of the Manufacturers Association of Nigeria (MAN) to be export-focused, saying this would help the country to recover quickly from the prevailing recession, and record economic growth.
He spoke at the recent virtual annual general meeting of the Apapa branch of MAN, with the theme ‘How Can Nigerian manufacturers weather post-Covid-19 storm.’
The former chairman of the Ikeja branch of MAN said: “Many companies have shut their doors and many others are gasping for breath!
Many people have lost their jobs, and many have been pushed into poverty. The Nigerian manufacturing sector has long been in dire straits even before the advent of Covid-19 and naturally became a major victim because of previous “co-morbidities”. I do not need to rehearse the many woes that the Nigerian real sector has faced over the years because that would be boring to this audience.”
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He observed that inflation climbed to 14.23 percent at end of October, unemployment 27.1 percent as at 2020 Q2 and misery index 39.66 percent. Youth unemployment is frightening at 34.9 percent and poverty has shot up to 40.1 per cent, thus, drastically eroding consumer purchasing power.
He added that “Rapid depreciation of the naira against the dollar and other international currencies is helping to fuel inflation. Nigeria is actually facing revenue and productivity crisis. Revenue is running far short of expense forcing the government to resort to what many call excessive borrowing.”
In his remarks, the Apapa branch chairman of MAN, Frank Onyebu, said the manufacturing sector would need to think out of the box in order to survive the expected competition from the imminent ratification of the African Continental Free Trade Area agreement (AFCFTA).
Onyebu noted that the association would continue its advocacy with the government with a view to addressing some of the challenges of the manufacturing sector.
“Nigerian manufacturers are not afraid of competition if these challenges are taken care of. We can compete favourably in a level playing field. We are hopeful that, in spite of its own numerous challenges, the government will address the needs of manufacturers, especially in the area of power supply, road construction and infrastructural improvements.”
Onyebu said the government can also assist manufacturers by way of tax incentives (including tax holiday), provision of low-interest loans and grants, among others.
