Manufacturers say they have the capacity to contribute 15 percent to the Gross Domestic Product (GDP), but this can only happen if governments at all levels put policies in place to drive the sector.
Nigeria’s manufacturing sector contributed 8.84 percent to the GDP in the third quarter of 2018, according to the National Bureau of Statistics (NBS), as against South Africa’s 13 percent.
“We want to substantially improve the manufacturing sector’s contribution to GDP to 15 percent within the next two, three years,” Mansur Ahmed, president, Manufacturers Association of Nigeria (MAN), said at a media luncheon in Lagos.
“This is also part of government’s plan on Economic Recovery and Growth Plan (ERGP).”
He said the manufacturing sector must make significant contribution to the economy not because it has more resources, but owing to its capacity to grow alongside a modern economy.
Ahmed said the automotive sector faces many challenges, which underscore the need to review the National Automotive Policy of 2013.
The policy imposes 35 percent levy and 35 percent duty on imported vehicles, amounting to a total of 70 percent.
Even with 70 percent fees paid on imported vehicles, importers of damaged or ‘accidented’ vehicles officially enjoy a rebate of 30 percent. What this has done is to encourage the importation of rickety vehicles, which make up 70 percent of imported cars today. This has hurt local vehicle assembly as only 6,999 new cars were sold in the whole of 2017 as against South Africa’s 555,716.
“There is a need for the policy to be revised, which will ensure the growth of the sector while ensuring that new policies will not be a threat to members of the association,” he said.
On political debates, the helmsman of the manufacturing sector in Nigeria said manufacturers would like to see more focus on the economy, especially on the sector.
“They should pay attention to the problems manufacturers are facing, particularly on issues such as infrastructure, access to finance, access to foreign exchange and other challenges.”
On made-in-Nigeria campaign, MAN president said the association is its major promoter and advocate and part of the advocacy led to the Executive 0rder 003, which mandates government departments and agencies to patronise locally made goods.
“Plans have been made to engage these agencies. Also, manufacturers have been asked to improve their efforts in terms of enhancing the quality of products so as to aid the made in Nigeria campaign,” he added.
He stressed the need to monitor government agencies and departments to ensure compliance, stating that some of them do not adhere to that.
On high interest rate, he said lowering rates could present opportunities for borrowers, but acknowledged that the the banking sector is already confronted with liquidity problem which makes lending difficult.
“So, this balance has continued to be based on the reality of the situation, but MAN has always asked for measures that will keep inflation at a lower rate because that will improve our goods and services.”
ODINAKA ANUDU& GBEMI FAMINU
