BusinessDay

FG reassures manufacturers of measures to cushion effect of high production costs

The Federal government (FG) has reassured manufacturers in Nigeria that the implementation of the Import Duty Exemption Certificate (IDEC) is carefully being executed to ensure that equipment and manufacturers/fabricators in the country are adequately protected and more importantly competitive in their manufacturing processes.

Under the IDEC, the FG through the federal ministry of industry, trade and investment grants incentives to local manufacturers to import machinery and equipment that are not fabricated locally, at zero percent, as a way of cushioning the effect of high cost of production for commodities, goods and services.

“It is imperative to state that this sector enables any country to fully utilize its endowments and depend less on foreign supply of finished goods for its economic growth, development and sustainability,” said Niyi Adebayo, the minister of industry, trade and investment, in a keynote address at the opening session of the 2022 edition of Equipment & Manufacturing West Africa (EMWA) expo, held in Lagos on April 26 – 28, with the theme, ‘Rethinking Manufacturing and Value Chains for Inclusion and Sustainability’.

“This critical sector plays a pivotal role as a vehicle for the production of goods and services, creation of employment and generation of incomes,” he further said.

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Adebayo, who was represented by Adewale Bakare, director of industrial development in the ministry, said that the manufacturing and equipment sector help in accelerating the pace of transformation and diversification of the economy.

“The Equipment and Machinery policy like any other is designed to facilitate and promote the growth of investment in the equipment and machinery sector in-country. The policy is being developed in close collaboration with all the stakeholders in the industry, including the private sector,” Adebayo stated.

The keynote speaker, Obi Onyeka Emekekwue, said that manufacturing is a critical sector of any country and could be a significant contributor to the economy if well developed. According to him, with the ability to attract over 1500 visitors, EMWA remains relevant in the manufacturing sector and serves as a catalyst to Nigeria’s economic growth, hence it should be given requisite support from government and all stakeholders.

According to Emekekwue, manufacturing is a prominent sector and for Nigeria to increase growth and global competitiveness, sustainability should remain her strategy and objective, which includes enhancing employees, community and product safety. “To improve our production, recognizing the challenges that confront the sector, we must begin to think about inclusion and sustainability in our processes and the quality of products”.

Joseph Oru, MD, Zenith Exhibitions and convener, EMWA, said exhibitors and visitors at the expo have identified Equipment and Manufacturing West Africa as a credible networking platform for achieving their strategic and organizational goals in relation to building sustainable partnerships across Nigeria and West Africa.

“As we network during this expo, you will discover innovative products, solutions and technology that will enhance your business and operational processes. We encourage you to take full advantage of the opportunities this show presents, to network, establish new partnerships and form new alliances that will be beneficial to you all,” Oru said.