Follow Us on Google
By Merit Ibe
The Manufacturers Association of Nigeria(MAN) Export Group, has cried out over the state of the nation’s exporters, who are practically struggling with reduced international demand coupled with domestic economic challenges.
Chairman of MANEG, Mrs Odiri Erewa-Megisson, who made the remark at the 6th Annual General Meeting of the group yesterday, themed: “Manufactured products competitiveness under the AfCFTA amidst high cost of production in Nigeria”, reeled out some of the challenges clogging the wheel of exporters to include but not limited to high and increasing exchange rates; high cost of energy, multiple levies and taxes, port congestion, unending insecurity, infrastructure deficiencies and smuggling, causing untold constraints on manufacturing operations.
On the microeconomic environment of the non oil export business, Erewa-Megisson applauded the federal executive council for the approval of the 2017- 2020 EEG claims, which also included some of the 38 exporters that were exonerated by the 8th national Assembly.
She also appealed to the Federal Government to reconsider the 34 deserving exporters that were stepped down by the 9th assembly from participating in the promissory notes programmes.
She viewed that the choice of the theme was appropriate, considering the fact that the sector is experiencing the toughest period in the history of its existence as a result of prevailing economic situation in the country.
“Apart from the above enumerated factors, policies of government on non oil export incentives, exchange rate policy, which led to further depreciation of the naira and scarcity of forex, hike in the price of diesel and other energy sources further culminated in low performance of the manufacturing export sector.”
The Special guest speaker, Professor of Economics & Dean, School of Business University of Ibadan, Adeolu O. Adewuyi, noted that a high and sustained living standard cannot be attained and sustained by any nation without considerable improvements in its manufacturing sector.
Adewuyi, who analysed the theme of the day, said the manufacturing sector is the propeller of economic growth, structural transformation and catch-up.
He explained that there are three levels in which competitiveness needs to be attained: economy, industry and firm levels..
Since the focus of the paper is on firm or industrial level competitiveness, the professor defined competitiveness as the ability of a firm to exploit its capability and resources to achieve low cost, high flexibility, dependability and high quality products; respond to the customers’ needs and expectations more efficiently and effectively compared to the competitors, among others.
Director General of MAN, Segun Ajayi-Kadir, in his address, noted that the times are not good for the manufacturing sector.
Emphasising the importance of export to the economy, he noted that the country needs to move from her comparative advantage and focus on export driven development.
“These are no good times for the manufacturing sector.
Export is important to us as a nation.
“We need to move from our comparative advantage and focus on export driven development.”
He said that is why the association
“for more than five decades, has concentrated on making Nigerian manufacturing competitive. And so the theme is apt that we are looking at competitiveness even in the midst of rising production costs.”
He decried that as business men, one of the most difficult things to do now is to drive down costs because inflation continues to dive north and profitability looking south.
“We are looking at our competitiveness even in the face of high production costs.”
