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By Merit Ibe
The Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to create a manufacturers bank with the responsibility to cater to the sectors financial needs.
President of MAN, Francis Meshioye, who made the call recently, cited the Bank of Agriculture, which he said is meeting the needs of the agriculture sector, noting that a manufacturers bank would also meet the needs of the sector.
Meshioye pointed out that the bank will help in accurate dispensation of any amount of money allocated to the sector by the Federal Government whenever there is government intervention.
Evaluating the performance of the sector, Meshioye explained that currently, the cost of manufacturing is rising daily, owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
“More worrisome is the fact that the sector that should propel job creation, productivity and economic growth is enmeshed with series of challenges that constantly limit its contribution to the Gross Domestic Product.”
He listed some of the challenges limiting its contribution to the GDP and growth of the sector to include epileptic power supply, insecurity, inadequate infrastructure, shortage of forex and naira depreciation, saying if Nigeria manufacturers will compete effectively, then a comprehensive and concerted effort needs to be deployed by the Government to overtake the binding constrain that limit local production and then seek to attract foreign investment that will bring about a reduction in the forex chase and ensure sufficient forex inflow that the country clearly requires.
“With a new administration steering the seat of governance, it is pertinent that all hands must be on deck to achieve a vibrant economy that can compete favourably. To start with, the government needs to prioritise investment in infrastructure and power, combat insecurity and corruption as well as introduce incentive policies that would make domestic production more attractive as against the importation of finished products. The AfCFTA window should be maximised in such a way that products manufactured in Nigeria would be the preferred in terms of quality and pricing.
“Until we addressed the binding constraints that make the local products uncompetitive, the benefit of a continental market might end up being a mirage for the largest economy in Africa. In the face of these shortcomings, we remain resilient and committed to our collaborative advocacy approach, as we strive towards the attainment of practical ease in doing business.”
We seek an atmosphere that supports favourable competition, with our counterparts in other countries, particularly within the continent.”
