MAN urges FG to expect terrible outcome over border closure

Merit Ibe 

Director General of  the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has warned that the Federal Government should expect terrible  outcome on the country’s economy in the short, medium and long terms over its recent decison to shut down the nation’s border

He warned that the country’s production capacity utilisation could fall to an all-time low, with mass closure of industries, downsizing of workers and high inventory of unsold goods looming.

Meanwhile, members of the organised private sector have also said the worst would befall the nation’s economy if the decision of  the Federal Government to place a full ban on businesses across land borders, was meant to stay.

MAN opined that with such a policy in place, there is no way the private sector can adequately contribute to the nation’s gross domestic product.

The Federal Government, recently, ordered the complete closure of the Nigerian borders, placing a ban on both legitimate and illegitimate movement of goods in and out of the country.

Ajayi-Kadir, noted that Nigeria’s manufacturing sector’s core business is all about import and export of goods and raw materials, adding that these are the areas that sustain the country’s local manufacturers, who are into production of goods and service.

He said the fate of many manufacturers was gloomy, stating that the worst hit was the Small and Medium scale Enterprises (SMEs).

According to him, export of local goods contributes about 80 per cent profit to local manufacturers that are into production of goods, adding that being in production is not only to serve the local market, but also to export in order to boost revenue profile.

The MAN DG noted that the policy would be the last straw as doing business in the country had been turbulent.

“It has been difficult for our members as Apapa gridlock continues to linger, leading to high cost of transportation of goods meant for export to the port and imported machineries and raw materials from the port.

“Other familiar challenges of the sector, such as high cost of energy, funds, multiple levies and taxes, smuggling also unleashed untold constraints on manufacturing operations, including the closure of borders almost two months and these have affected export through land borders,” he stated.