The Manufacturers Association of Nigeria (MAN) has cried out to the Nigerian Government to urgently address the limiting factors currently threatening the survival of manufacturing industry in the country.
President of MAN, Francis Mishieoye, who made the call recently at a forum in Lagos said unavailable manufacturing input is driving up cost at at alarming rate and could soon ground many factories if prompt action is 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.
“Such challenges as epileptic power supply, insecurity, inadequate infrastructure, shortage of forex and naira depreciation are prevailing issues that are impacting negatively on the sector.
“If Nigeria manufacturers will compete effectively, then a comprehensive and concerted effort needs to be deployed by the Government to overtake the binding constrain that limit local production.”
According to the MAN boss, promptly addressing the identified challenges will help attract foreign investment that will bring about a reduction in the forex chase and ensure sufficient forex inflow that the country clearly requires.
“With a new administration steering the seat of governance, it is pertinent that all hands must be on deck to achieve a vibrant economy that can compete favourably.” He said.
Mishieoye urged the government at the center to focus on tackling insecurity and corruption as well as encourage domestic production.
“To start with, the government needs to prioritise investment in infrastructure and power, combat insecurity and corruption as well as introduce incentive policies that would make domestic production more attractive as against the importation of finished products.
“There is no other way manufacturers will remain in business if their goods are not well patronised by the target consumers.
“For the manufacturing sector to become competitive, we must all not rest on our oars until we can boost of a sector that guarantees the sustainability of the economy
“The AfCFTA window should be maximised in such a way that products manufactured in Nigeria would be the preferred in terms of quality and pricing.
“Until we address the binding constraints that make the local products uncompetitive, the benefit of a continental market might end up being a mirage for the largest economy in Africa.
“In the face of these shortcomings, we remain resilient and committed to our collaborative advocacy approach, as we strive towards the attainment of practical ease in doing business.
“We seek an atmosphere that supports favourable competition, with our counterparts in other countries, particularly within the continent.”
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