Manufacturers in Nigeria, under the auspices of the Manufacturers Association of Nigeria (MAN) have raised concerns over the escalating cost of diesel in the country and the impending consequences on the nation’s economy.
In a statement signed by the director General, Segun Ajayi-Kadir, MAN urged the government to urgently develop a National Response and Sustainability Strategy to address the situation.
As part of immediate solutions to the problem, the manufacturer’s body specifically asked government to, among other recommendations, issue licenses to manufacturing concerns and operators in the Aviation industry to import diesel and aviation fuel directly.
According to the statement, the measure will help “avert the avoidable monumental paralysis of manufacturing activities arising from total shut down of production operations and movement of persons for business activities.”
The statement bread in part, “The manufacturing sector in Nigeria employs over 5 million workers, directly and indirectly with 8.46% contribution to Gross Domestic Product.
“The sector also dominates export trade in the West African region, generate foreign exchange, and contributes substantially to revenue of Government and human capital development in Nigeria.
“Manufacturers are heavy users of electricity in Nigeria and this naturally necessitates our keen interest in all electricity and alternative energy supply related discourse and development.
“It is therefore imperative that manufacturing be given priority attention and safe guarded against steep deadline. This should be backed with comprehensive and integrated support system during times of crisis.
“Its performance should be enhanced through a pro-manufacturing policy that will encourage scale and lower unit cost of production.
“Over the years, the manufacturing sector has been battered by numerous familiar challenges that have plummeted the number of industries in Nigeria and converted industrial hubs in many parts of the country to warehouses of imported goods and event centres.
“Top on the list of challenges confronting the sector is high operating cost environment occasioned largely by inadequate electricity supply and the high cost of alternative sources…
“Excessive regulation and taxation, and inadequate supply of foreign exchange for importation of raw materials, spare parts and machinery that are locally available. All these have culminated into the lackluster performance of the sector.
““The Manufacturers Association of Nigeria is greatly concerned about the implications of the over 200% increase in the price of AGO on the Nigerian economy and the manufacturing sector.
“As a matter of urgency, we call on government to: address the challenge of repeated collapse of the national grid (twice within a week), which is causing acute electricity shortage in the country, especially for manufacturers;
“Immediately allow manufacturers and independent petroleum products marketing companies to also import AGO from the Republic of Niger and Chad by immediately opening up border posts in that axis in order to cushion the effect of the supply gap driven high cost of AGO.”
The Manufacturers Association of Nigeria (MAN) is the voice of manufacturers in Nigeria and the leading Business Membership Organization in West Africa and the African Continent.
The Association represents the interests of over 3,000 manufacturers (small; medium; large and multinational industries spread across 10 sectors, 76 sub-sectors and 16 industrial zones and currently leading the Federation of West African Manufacturers Association and Pan African Manufacturers Association.
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