By Barnabas Esiet.
In his first major activity for the year since assuming his new office in the last quarter of the previous year, the president, Manufacturers Association of Nigeria (MAN), Francis Meshioye, in February, promised to work towards speedy development of manufacturing in Nigeria during his tenure.
Meshioye who made the promise in his address at the 2023 Award and Presidential Media Luncheon held at the MAN House in Lagos, said to realize the objective, the Association will strategically engage the president and other politicians
“MAN is being strategic in its engagement during this electioneering year to place its issues on the front burner. We have engaged the Presidential aspirants on the importance of having a virile and competitive manufacturing sector.
“We have equally pushed at different fora with major political contenders to incorporate the need to accelerate the growth and development of the manufacturing sector in their economic agenda.
“In this regard, we have availed all the political parties with our Blueprint for the Accelerated Development of Manufacturing in Nigeria as well as the agenda for manufacturing in Nigeria for the next 10 years.” The MAN president said.
In April MAN Applauded Federal Government’s decision to suspend planned increase in excise duty on alcoholic, non-alcoholic beverages and tobacco as well as allowing the 2022-2024 federal government sectoral roadmap to run its full course.
In a statement signed by the Director General, Segun Ajayi-Kadir, MAN noted that a major setback that plagued the productive sector in 2022 was the introduction of an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages in the country.
Recall that the duty charge was part of a new policy introduced in the Finance Act, which was signed into law by former President Muhammadu Buhari on December 31, 2021, alongside the 2022 Appropriation Bill.
According to the then Minister of Finance, Budget and National Planning, Zainab Ahmed, the new sugar tax was introduced to raise excise duties and revenues for health-related and other critical expenditures in line with the 2022 budget priorities.
In May, however, it was apparent that the Federal Government wasn’t ready to keep its promise, leading MAN to issue a statement condemning the increases in Excise tax for 2023 and 2024 as provisioned in the 2023 Fiscal policy.
In the statement signed by the Director General of MAN, Segun Ajayi-Kadir, the Manufacturers’ umbrella body said the increase came as a surprise.
“As a major stakeholder, MAN had actively participated in the deliberations on the proposal and presented various positions from its members across all sectors, especially those directly impacted by the proposed measures.
“From the meeting held with the Honourable Minister of Finance, Budget and National Planning on the 29th March, 2023, MAN representatives were informed that the 2023 proposals on additional Excise tax increases were being stepped down until further consultations on the 2023 Finance Bill.” The statement read.
Also in May, Africa’s Largest Refinery was commissioned as MAN, in a statement, congratulated the President and Management of Dangote group on the completion and commissioning of its Petroleum Refinery located in Ibeju-Lekki, Lagos State.
The refinery which is situated on a land spanning approximately 2,635 hectares is rated the World’s Largest Single Train 650,000 barrels per day Petroleum Refinery with a 9000 KTPA Polypropylene Plant ever built.
In June President Bola Tinubu’s innaugural statement that his industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency resonated with MAN.
In a statement signed by the Director General of MAN, Ajayi-Kadir, the Manufacturers’ umbrella body said the president’s speach was ‘an unmistakable indication of a far-sighted strategic choice.’
” One that is borne out of a deep reflection on the current inclement manufacturing environment and the need to stop the drift into inglorious de-industrialization of the Nigerian economy.”
MAN urged President Tinubu to, among other things, reverse the unwarranted violation of the escalated three-year excise roadmap on alcoholic beverages and tobacco initiated by the previous regime.
Also in June MAN scribe, Segun Ajayikadir
Made know the position of manufacturers on Electricity Act 2023.
According to him, the Electricity Act 2023, if well implemented, promises to be a major game changer for the manufacturing sector with favourable implications including:
Reduced Cost of Alternative Energy – as the Act will see to the drastic fall in the cost of alternative energy incurred by our members and we expect this to boost our profit margin.
Other anticipated benefits according to MAN are:Competitive and Lower Electricity Tariff and Improvement in inflow of Foreign Direct Investment (FDI) and Manufacturing Performance.
In July MAN Applauded President Tinubu’s Executive Orders, describing it as “Timely Intervention to Avert Looming Existential Threats to Manufacturing.”
According to Director General of MAN, the unwarranted and clearly disingenuous escalation of excise duty and introduction of new taxes in the 2023 Fiscal Policy Measures had the potential impact of truncating the business projections of producers and assaulting the purchasing capability of the average Nigerian.
His words, “In keeping with the trend of positive policy initiatives that we have seen with his administration, the four executive orders released has put paid to the anxieties of manufacturers in the affected sectors in particular and operators in the expansive value chain in general.
“The suspension of the obnoxious aspects of the 2023 Fiscal Policy Measures, which arbitrarily imposed additional tax burden on the manufacturing sector, is a welcome development and has removed a looming clog on its operations and productivity.
“We expect that the Customs Service will now stand down the requirements for compliance with the excise escalation and the registration for the green tax.”
During the month under review, MAN expressed concern over what it described as “impending displacement of local meter manufacturers and assemblers in the downstream Nigerian power sector”.
In a statement, the Manufacturers umbrella body said it’s concern is fueled by the biased implementation of the World Bank funded National Mass Metering Programme (NMMP) phase two.
The programme was intended for supply and installation of 1.250million smart energy meters to eleven electricity distribution companies operating in the country following the bid; DRE-PPI with credit no. 9206-NG, Project no. P172891.
According to the statement, the financial demands and technical requirements specified by the Transmission Company of Nigeria (TCN) are are too stringent for local manufacturers to meet.
President Bola Tinubu.
In July , the Manufacturers Association donated a set of brand new Lenovo computer to the Commerce and Industry Correspondents Association of Nigeria (CICAN) to facilitate activities at its Lagos office.
CICAN Chairman, Charles Okonji, who unveiled the computer to members in their secretariat at NACCIMA House Ikeja Lagos on Thursday July 13, 2023, commended the MAN President, Otunba Francis Meshioye, for the kind gesture.
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In August, the Organised Private Sector of Nigeria (OPSN) called on the Federal Government and the Labour Unions to work relentlessly to avert disruption of socioeconomic activities in the country.
The Organised Private Sector of Nigeria is comprised of five business membership organizations, namely: Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA);
Nigeria Employers Consultative Association (NECA); The Nigerian Association of Small and Medium Enterprises (NASME) and Nigerian Association of Small Scale Industrialists (NASSI).
In a joint statement made available to Newsshelve by the Director General of MAN, the OPSN said it has been following keenly, the developments leading to the call by the National Labour Congress (NLC) and Trade Union Congress of Nigeria (TUC) for a nationwide peaceful protest or rally, on Wednesday 2nd August 2023.
Also during the month, MAN expressed worries over continued inflationary pressure experienced in the country, attributing it to the fallout of government policy and measures, including removal of fuel subsidy and the unification of exchange rates.
According to manufacturers Body, additional concerns about increasing energy costs and widespread insecurity in food-producing regions are exacerbating the inflationary pressures.
“Furthermore, the ongoing rise in inflation erodes savings and incomes, prompting the CBN to raise the country’s benchmark interest rate to the highest level in nearly twenty years.”
According to Ajayi-Kadir, in July 2023, Nigeria experienced a surge in inflation, with the rate reaching a new 18-year high of 24.08 percent.
“This marks an increase of 1.29 percent from the previous month’s rate of 22.79 percent, as reported by the National Bureau of Statistics (NBS).
“The current inflationary condition in Nigeria is adversely affecting the operation of the manufacturing sector, just like most other sectors of the economy.”
Still in the month, MAN announced the 7th edition of the Nigeria Manufacturing and Equipment (NME) Expo 2023 to hold from 21st to 23rd of November 2023, at the Federal Palace Hotel in Lagos.
In a statement signed by the Chairman, NME/NIRAM Organizing Committee, Ambrose Oruche, MAN said Nigeria Manufacturing and Equipment Expo with the theme: Future of Manufacturing will be held in partnership with the Nigeria Raw Materials Exhibition (NIRAM Expo) in 2023.
Still in that month MAN decried the negative impact of Naira redesign policy on the Manufacturing Sector.
The Manufacturers Association said the naira redesign policy and cash withdrawal limits introduced by Nigeria’s Apex Bank in the first quarter of 2023, took a toll on Manufacturing business in the country.
According to the MAN CEO’s Confidence Index report for the second quarter of 2023, the crisis precipitated by the policy grossly limited the capacity of Manufacturers in the country and almost crippled the sector.
In September, MAN Called for harmonization of Fiscal, Monetary Policies for stable Macroeconomic Environment, Manufacturing Sector Productivity.
According to MAN, manufacturing activities in the country in second quarter of 2023 was adversely affected by many negative economic variables including; escalation in the Consumer Price Index (CPI), continuous erosion in Naira value…
Difficulty in accessing forex, high cost of energy, naira crunch, exorbitant taxes, high lending rates, persistent, insecurity, domino effects of the lingering Russian-Ukrainian war and slow recovery from the cash crisis.
MAN noted in the second quarter MCCI report that “Manufacturers were extremely groaning in pain due to the issues that are frustrating their contribution to the economy.”
The looming disruption of socioeconomic activities in the country following disagreement between the labour unions and the federal government also drew the attention of MAN as it called for a truce.
A statement jointly signed by the five component business organizations of the OPSN, expressed deep concerns over the impending protest and the likely consequences for the wellbeing of the masses.
According to the statement, the nation’s economy cannot afford a nationwide strike at the time more so as the major economic indicies were not looking good.
In October, MAN announced programme of events heralding the Association’s 51st AGM in Lagos.
President of MAN, Francis Meshioye, who announced this at a press briefing in Lagos said the theme for the 51st AGM “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to do” was phrased with a deep reflection over the growth trajectory of the manufacturing sector in Nigeria and Africa.
Still in October, MAN sought Federal Government’s Intervention over high cost of production input to Save Sector from Imminent Collapse.
President of MAN, Francis Mishieoye, who made the call said unavailable manufacturing input was driving up cost at at alarming rate and could soon ground many factories if prompt action was not taken by the government.
In his words, “Currently, the cost of manufacturing is daily rising owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
“More worrisome is the fact that the sector that should propel job creation, productivity, and economic growth is enmeshed with series of challenges that constantly limit its contribution to the Gross Domestic Product.”
MAN also condemned the federal government’s decision to lift the ban on 43 items on foreign exchange restriction earlier imposed by the Central Bank of Nigeria, (CBN), noting that it was not going to augur well for the nation’s industry and the economy as a whole.
The Vice Chairman of Basic Metal, Iron and Steel Products sector of the Manufacturers Association of Nigeria, (MAN) Lekan Adewoye, raised the alarm while featuring on a TVC Business Programme monitored in Lagos.
During the month, the manufacturers umbrella body also asked the Federal Government of Nigeria to midwife a meeting between the country’s apex bank and the Association to debate on the right way forward over the import restriction policy reversal.
President of MAN, Francis Meshioye, who made the request at the 51st Annual General Meeting (AGM) of the Association in Lagos, said though the new policy measures introduced by the President Bola Tinubu’s administration were commendable the implementation precipitated some adverse outcomes in the economic system that must be addressed.
Recall that the Central Bank of Nigeria (CBN) under the former Governor, Godwin Emefiele, imposed import restriction on 43 selected items to reduce the demand for scarce foreign exchange.
In November, MAN unveiled plans to host the Lagos 2023 NME, NIRAM Expo, setting agenda for discussions.
President of the Manufacturers Association of Nigeria MAN, Francis Meshioye alongside the Director General/CEO of Raw Materials Manufacturing Research and Development Council (RMRDC), Prof Hussaini Ibrahim, disclosed this at an international press conference in Lagos
The event was jointly organized by the Manufacturers Association of Nigeria (MAN) and the Raw Materials Manufacturing Research and Development Council (RMRDC), in collaboration with the Federal Ministry of Industry, Trade and Investment & the Federal Ministry of Science, Technology and Innovation.
The 7th edition of the Nigeria Manufacturing and Equipment Expo (NME Expo) & the Nigeria Raw Materials Exposition (NIRAM Expo) laid major emphasis on doing business and growing manufacturing businesses.
In a statement, Organisers of the event said NME Expo & NIRAM Exposition was going to show-case a wealth of investments, trade and partnership opportunities with special spotlight on deal flow that promises to reshape the African manufacturing landscape.
According to the statement, the 2023 edition with the theme ‘Future Manufacturing: Building a Sustainable Roadmap to the Industrialization of Nigeria” stressed “Deal Flow” as being the key to Manufacturing and industry growth”
“Emphasis on ‘Deal Flow’ is aimed at facilitating meaningful partnerships, investments, trade opportunities and collaborations that drive innovation and growth.” The organisers noted.
At the event proper, MAN called on the President Bola Tinubu led administration to initiate a new industrial policy for the country to facilitate rapid industrialization.
President of MAN, Francis Meshioye, made the call at the 2023 edition of the Nigeria Manufacturing and Equipment (NME)/Ninth Nigeria Raw Materials Expo in Lagos.
He underscored the importance of synergy between trade and industrial policies and a conducive business environment towards realizing an industrialized country.
In his words, “The vision of industrialized Nigeria would remain an illusion until we resolve the bidding constraints that affects ease of doing business in the country.”
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