BoI pledges more support for manufacturers

By Merit Ibe                                               [email protected]

The Bank of Industry (BoI) has said it is  wired to support manufacturers in Nigeria to improve and remain in business.

Its Managing  Director and Chief Executive Officer, Mr Olukayode  Pitan, made the remark yesterday, at the 52nd Annual General Meeting of the Manufacturers Association of Nigeria (MAN), Apapa branch, themed: “Financing Nigeria’s Manufacturing Sector for Economic Growth”.

The BoI boss, who was represented by Dr Isa Omogu, GM Large Enterprises, spoke on the topic: “Financing options for competitiveness of the Nigeria manufacturing under the Africa Continental Free Trade Agreement (AfCFTA).

He explained that for manufacturers to compete effectively, they were to look at various  financing options like alternative financing instruments; traditional debt finance and credit guarantee schemes, emphasising that  finance is a key consideration for manufacturers to ensure business survival and profitability.

He said the Nigerian economy remains the largest in Africa and that its  rapidly growing population is expected to drive overall growth in consumption and production activities, noting that basically,  Nigeria is lagging behind in respect to AfCFTA.

He noted that to overcome the complexities of funding, the process has been digitized for easy access.

For his part, Chairman, MAN Apapa branch, Frank Onyebu, lamented that the last business year was challenging with manufacturers faced with numerous challenges which were direct fallouts of the harsh operating environment and negative economic trends in Nigeria.

He said most worrisome was the fact that these operational challenges such as deteriorating infrastructure, high energy cost, high inflation, multiple taxation, forex liquidity, insecurity among others have  continued to deteriorate over the years.

“Due to the harsh economic environment, the value of manufacturing production decreased from N7.39trillion in 2021 to N6.67trillion in 2022.

“2022 was mostly characterised by a harsh operating environment, themed by record-high inflationary pressure, high interest rates, multiple taxation, high energy costs, forex illiquidity, shortage of raw materials, among others.”

He noted that  supply shortages, surging material prices and difficulty in hiring qualified staff also stalled the growth of the manufacturing sector.

“These impacted negatively on the manufacturing sector and expected results reduced and some times negative bottom line.

According  to him, manufacturers were forced to operate under excruciating circumstances made worse by inherent systemic failure, sustainable issues, over regulation, inconsistencies and contradictions in fiscal and monetary policies.

“Our resolve to remain in manufacturing was due to act of patriotism and resilience of sector players.

The current downturn calls for urgent measures that would keep manufacturers in business especially with the AfCFTA at the full implementation stage.

“We appeal to the governor to prioritize manufacturing in Lagos by granting access to the leadership of the association for deliberations on how to improve the sector in the state.”

He called on manufacturers not to give up, but strive to surmount these challenging times.

In her address, Permanent Secretary, Lagos State Ministry of Commerce, Industry and Cooperatives,  Mrs Adetutu Ososanya, who represented Governor Babajide Sanwo-Olu, noted that the sector  must be equipped to enhance the competitiveness of  manufacturers.

“We must address the issue of finance to enable them thrive.”

The governor promised to collaborate with the sector for a better performance, calling on  industry leaders to share their knowledge on better practices.

He pointed out that for a successful AfCFTA, there was need to attain and maintain access to seamless finance.

He commented on the place of collaboration for a viral manufacturing sector and appealed to BoI to make access to loans seamless.

“On behalf of MAN,  please I’m pleading, let these loans get to them to enhance their capacity.

There has been testimonials of some manufacturers who have been able to  access funds from the bank.

“We will continue to create an enabling environment for businesses to thrive..

Our doors are open to public private partnership.

“I commend Apapa branch of MAN and the main body of manufacturers for the doggedness.”