President Goodluck Jonathan
The Manufacturers Association of Nigeria (MAN) has expressed concern over the Federal Government’s plan to remove fuel subsidy in the country.
The Chairman, MAN Apapa Branch, Mr. John Aluya, explained that indications show signs of greater pains to come, should the deregulation take effect next year.
Aluya, who spoke at MAN Apapa Branch’s 40th Annual General Meeting (AGM), therefore urged members to brace up for the challenges ahead, stating that the economic climate leaves much to be desired.
“We hope our pursuit for industrial excellence will be accomplished such that the attendant hype associated with changes in petroleum pricing that culminate in strike actions will be avoided,” he said.
Aluya however stated that the motivation to stimulate growth in the manufacturing sector has been identified to be the problem of multiple taxation, funding, and poor state of infrastructure, which has continued to manifest as the challenges to industries.
According to the chairman, the multiplier effect of numerous taxation, infrastructural deficiency and policy inconsistencies had been the gross dislocation of priorities by member-companies having to provide their own water, road, energy and in some cases adopt unorthodox practices in order to remain in business.
He said against this backdrop are issues arising from chains of demand by government agencies for current and backlog of payments, even when the effect of these agencies have not been felt by its members.
“It is our humble belief that issues centred on industries be given proper discourse, dimensions of approach should be carefully made in order not to disrupt production as some of the threats to shutdown factories have actually caused panic and dislocation of resources,” he said.
He said in order to scale up investments and implementations of projects through private sector initiative and public private partnership, there is a need to institutionalise a special development vehicle that would drive investment and processes.
“Although, we must grapple with decaying infrastructure and poor regulatory environment, Nigeria possesses many positive attributes for carefully targeted investment and will expand as a regional and international market player,” he said.
“Although, we must grapple with decaying infrastructure and poor regulatory environment, Nigeria possesses many positive attributes for carefully targeted investment and will expand as a regional and international market player,” he said.
He pointed out that the World Bank economic index has revealed the high cost of doing business in Nigeria; compared with other countries shows that Nigerian manufacturers are hampered such that they provide virtually all their infrastructural needs.
He called for increase in industrial activities to be dominated by renewed commitment from the FG to complete the privatisation of Power Holding Company of Nigeria (PHCN), and for government to adopt more public private partnership in a bid to improve the state of infrastructural facilities in the country.
He called for increase in industrial activities to be dominated by renewed commitment from the FG to complete the privatisation of Power Holding Company of Nigeria (PHCN), and for government to adopt more public private partnership in a bid to improve the state of infrastructural facilities in the country.
The industrialist urged commitment by government to improve power generation and relevant transportation infrastructure, and added that inflationary tendencies likely to be fuelled by the proposed deregulation of petroleum products prices must be carefully managed.
“Let me reiterate here that our commitment to the development of Lagos State shall increasingly be renewed as we hope that the second term of the Executive Governor of the state will bring bold smiles on the stretched faces of members,” he said.
“We will not fail to mention the need for a forum for the Governor to meet with manufacturers to discuss issues, challenges and fortunes of industries in the state,” he added.
“We will not fail to mention the need for a forum for the Governor to meet with manufacturers to discuss issues, challenges and fortunes of industries in the state,” he added.
“Clearly, government must increase its spending on infrastructure so as to lower the cost of doing business in the country. This will ultimately translate to improved planning and projections,” he added.
Also speaking, the President, MAN, Mr. Kola Jamodu, explained that no economy would be tagged developed without a thriving manufacturing sector.
Also speaking, the President, MAN, Mr. Kola Jamodu, explained that no economy would be tagged developed without a thriving manufacturing sector.
Jamodu, who spoke during the meeting appealed to the FG to heed its pleas to be unrelenting with regard to reposition the manufacturing sector in the country.
He therefore called on manufacturers to reciprocate the gesture of the Federal Government by rising up to the challenges of adopting best practices, high quality products and appropriate technology in order to be competitive.
“We should encourage linkages between the large, small and small scale member-companies and eliminate all forms of tariff related squabbles,” he said.
“We should encourage linkages between the large, small and small scale member-companies and eliminate all forms of tariff related squabbles,” he said.
He said the theme of the AGM ‘Contemporary Issues in Manufacturing. Today in Nigeria: A Manufacturer’s Experience’, was apt, in view of the effects of issues that are structural bottlenecks on the manufacturing sector
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