The Manufacturers Association of Nigeria (MAN) has highlighted certain low-hanging fruits that could help bolster the nation’s economy within a short time.
The advocacy group while reacting to the inaugural speech of the president, congratulated him and stated that though his speech aligns with it wishes and aspirations, it however pointed out certain areas that need immediate actions to help the economy move forward.
According to a statement signed by Segun Ajayi-Kadir, director-general, MAN, the group stated that in addition to pursuing the unification of the exchange rate, the CBN should be prevailed upon to take effective action to give priority to the allocations of foreign exchange to the productive sector, particularly to manufacturers to import raw materials, spares, and machinery that are not locally available.
- Direct the NERC to admit all qualified applicant companies into the Eligible Customer Scheme in order to allow them access to power as stipulated in the Electric Power Sector Reform Act 2005.
Direct all relevant agencies of government to ensure that the electronic call-up system at ports aimed at redressing the congestion works without fail.
- Revisit the Finance Bill 2022 to ensure it includes the critical inputs of the organized private sector. In particular, the jettisoning of the highly objectionable removal of the 10% investment allowance on the acquisition of plants & machinery (in the Company Income Tax Act, section 32). Additionally, to ensure that the imposition of the 0.5% levy on eligible imports from third countries is limited to goods that we have the capacity to produce locally and quite importantly, exclude raw materials that are not locally available. The input of the Organised Private Sector on the CEMA bill should also be taken on board before the amendment bill is signed into law.
- Announce a special policy initiative to address the revival of closed and distressed industries, particularly in the northeast where 60% of our member companies have closed.
- Craft and announce a special policy initiative to leverage diaspora expertise and investment to address evident gaps and help to boost the performance of the economy.
- Direct all ministries, departments, and agencies of government to unfailingly comply with Executive Order 003 on the patronage of made-in-Nigeria products. In this regard, there should be strict application of the margin of preference, effective monitoring and periodic evaluation of compliance, and appropriate sanctions meted out to MDAs acting in breach of the executive order.
- Announce a special policy initiative to derisk manufacturing and release adequate funding for the sector through effective funding of special lending windows.