By Merit Ibe ibe.merit@yahoo.com
Manufacturers have for the umpteenth time drawn the attention of the new ministers to the plight of the real sector, calling for revival of collapsed industries and a friendly business environment to save the sector from going into extinction.
The business environment, economic hardship and the plight of the masses have been worsened by a number of policies which have hit businesses hard, with many struggling to survive due to increased operating costs, forex scarcity, reduced demand and disrupted supply chains, among others.
Micro, small and medium enterprises (MSMEs) operators and other private-sector players have lamented that the situation is particularly challenging as they are faced with acute shortage of raw materials, a slowdown in production and increased operating costs.
Consequently, subsidy removal, the foreign exchange crisis, multiple taxation, among other numerous hurdles, have stifled businesses especially the manufacturing sector.
As the new ministers tasked with overseeing the nation’s economy face the responsibilities and high expectations resume office, manufacturers have specifically called on the new Minister of Industry Trade and Investment to help save the manufacturing sector from going into extinction by helping to create the right environment for businesses to thrive.
Commenting, the Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, while lamenting the protracted scarcity of naira notes which according to him has led to a 25 per cent dip in sales of manufactured goods, listed major areas the appointed ministers should utilise to drive the economy and manufacturing sector. He called on the ministers to focus on addressing the revival of closed and distressed industries, particularly in the North East where over 60 per cent of companies have closed.
“All ministries, departments and agencies of government must unfailingly comply with Executive Order 003 on the patronage of made-in-Nigeria products.
“In this regard, there should be strict application of the margin of preference, effective monitoring and periodic evaluation of compliance and appropriate sanctions meted out to MDAs acting in breach of the executive order,” he said.
Former Chairman, Apapa branch of the MAN, Frank Onyebu, who reeled out expectations of the sector, prayed that the manufacturing sector would be given the required priority by the government, saying the Minister should have listening ears and be able to speak on behalf of manufacturers to the government.
“The Minister should be able to relate with the fact that the manufacturing sector could go into extinction if the government does not create the right environment for businesses to thrive. The Minister should be able to convince the government that the manufacturing sector has the capacity to pull the Nigerian economy out of the woods.” he said.
Onyebu who noted that that the expectation of manufacturers are high, lamented that past governments have paid lip service to the issue of diversification of the economy from the petroleum sector.
“I expect that after so many years of inaction, the government would have realised that there is absolutely no alternative to embracing diversification of the economy.
“I expect that the new minister fully understands the role of the manufacturing sector in this regards,” he said.
He noted that the manufacturing sector should be given the required priority by the government.
“The Minister needs to be abreast of the numerous challenges facing manufacturers. He should be able to persuade the government to take the necessary measures to ensure a sustainable recovery from the years of neglect.
“The Minister needs to put pressure on the government to fix electricity and other infrastructural issues. He needs to also convince the government to look into the issue of multiple taxation and over-regulation.
“The Minister needs to make known to governments at all levels, the role of manufacturers in job creation, wealth creation and overall prosperity of the country. The list is endless. He needs to be seen to be the embodiment of a new economic renaissance in Nigeria,”he said.
For the Chief Executive Officer of the Centre for Promotion of Private Enterprise, (CPPE), Dr. Muda Yusuf, the main task for the new ministers should be cushioning the effect of the subsidy on businesses.
He urged the ministers to immediately create a forum for stakeholders’ engagement with manufacturers so that they could deal with the issues more comprehensively and sustainably.
Dr. Yusuf also suggested creating industrial clusters with government-supported infrastructure to promote resource-based industrialisation.
He noted that Nigeria has strong policies for industrialisation but lacked concrete action and sustainable growt and listed weak infrastructure, the high cost of funds and limited access to credit as key challenges facing the sector.
Hence, to revive the manufacturing sector, the government must prioritise resource-based industrialisation and address systemic infrastructure issues.