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By Bimbola Oyesola
Employers in the Chemical sector of the economy have charged the Federal Government to give more thought to policies frustrating manufacturing sector and the overall economic growth in the country.
This is even as they called on the government to declare state of emergency in the manufacturing sector, stating that the sector requires immediate attention.
The employers body, Chemical and Non Metallic Products Employer’s Federation ( CANMPEF), said the nation can advance through policies that promote growth, investment and innovation.
President of CANMPEF, Chief Edwin Devakumar, who is also the Vice President of Dangote Industries, speaking at the 2023 of Annual General Meeting (AGM) of CANMPEF in Ikeja, Lagos, said a clear declaration of emergency by government would demonstrate it’s commitment to revitalizing the sector.
”By offering tax reliefs and removing tariffs on key agricultural and manufacturing inputs, the government can reduce operational costs and encourage growth,” he opined adding that these subsides will also have a profound impacts on the job creation.
“The social and security benefits of such a move are immeasurable and far reaching,” he said.
Edwin said the Chemical and Non-Metallic Industry faced various challenges in 2023.
According to him, many of the challenges have built-up over time, from unreliable power supply, currency fluctuation, inflationary pressures , insecurities, multiple taxation to inadequate infrastructure.
Devakumar lamented that the government policies, particularly the rival of petroleum subsidy and the floating of Naira, have compounded the pressure on the industrial operation.
He expressed that the adjustments, though intended to stabilize the economy, have led to a sharp rise in operating costs for manufacturers, further eroding the disposable income of consumers, with many households grappling with the cost of basic necessities, industries- especially those dependent on discretionary spending.
“Despite these constraints, Nigeria’s manufacturing sector is determined to persevere. Our members have continued to deploy measures such as effective resource allocation and rethinking growth strategies to stay afloat,” he said.
He however noted that, “The resilience of Nigeria’s industrial players is commendable, but long term solution must be timely implemented if we are to thrive than just survive,” he said.
Also speaking, the Executive Secretary of CANMPEF, Mr Femi Oke said the industrial sector faced numerous challenges in 2023.
He said the unification of exchange rates in June 2023 led to initial volatility and scarcity of forex, impacting manufacturers’ ability to import raw materials and machinery.
Speaking further, he said the persistent power outages and the removal of fuel subsidies significantly increased production cost.
“This abrupt rise in fuel prices had a profound impact on all economic agents in the country, particularly businesses and household.
“Inflation peaked at 28.92 percent in December 2023, eroding consumer purchasing power and increasing operational costs. On-going insecurity in various of the part country disrupted supply chains and distribution network,” he said.
Oke said these socio-economic challenges had adverse effect on the chemical sector. He said some companies shut down their operations, and a lot of companies are currently producing under capacity.
“Direct and indirect job losses is enormous with companies downsizing and right sizing to survive the economic turmoil,” Oke said.
