Manufacturers Association of Nigeria, MAN, has stated that even though the current economic policies of President Bola Tinubu’s administration have brought tough times to Nigerians and their businesses, yet they are necessary and welcomed.
Chairman of MAN in Cross River and Akwa Ibom States, Dr.
Adoga Inalegwu, stated this in Calabar over the weekend after a familiarization
visit to member companies in Calabar.
“I think President Bola Tinubu’s policies are necessary and
tough decisions that Nigeria needs presently. This is because if we keep
deceiving ourselves that everything is the way it should be, if we keep
palliating ourselves, we will never solve our problems.”
“So he has made very bold moves. Okay, look at, people
complain about the tax reform. Tax reform has its pros and cons.
“One of the fundamental advantages it posits for
manufacturers is shrinking, reducing the basket of multiple tax issues that we
are faced with. So that for me is important. And also the fact that he has
tried to improve the disposable income of the population.”
The MAN boss, however, stated that they are not satisfied
with the high exchange rate of a little over N1,500 to one dollar in recent
times but are nevertheless happy that it has been stable for some time.
“We are not satisfied with the exchange rate, but we are
happy with the stability. We are also happy that it is not just stable, the
dollar is also available.
“We no longer struggle to source for Forex. In 2023, I am
the one that knows how much I suffered in sourcing for Forex. I suffered big
time.”
In spite of the stability, he said MAN members still import
materials from abroad as inputs into their manufacturing process at double the
former costs due to high Forex issues. “The good news is that Forex has had
some bit of stability.”
According to him, the economic policies may not be perfect,
but things are looking up even though it is not all a completely perfect story.
He stated that their member companies have learnt to adapt
to the difficult times.
“This doesn’t mean that there are no member companies that
are not bearing the brunt of the times.
“When times are difficult, you have to evolve strategies to
survive. And not just to survive, but also to thrive.
“Nigerian manufacturers can still be resilient, can still be
ambitious, can still be forward-thinking, even when things are not very rosy.”
Inalegwu expressed unhappiness in the increase in Value
Added Tax, VAT, by 2.5 percent, saying that it is really significant, impacting
against many firms.
“The magnitude of the increase to many firms that spend
billions is significant enough. One way or the other, it will impact on
revenues. I’m not happy with that.”
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