MAN Urges Nigerian Government to Implement Policies for Industrial Growth
The Manufacturers Association of Nigeria (MAN) has put forward a series of recommendations aimed at enhancing the performance of the real sector in 2024.
MAN’s director-general, Segun Ajayi-Kadir, communicated these suggestions to the federal government in a statement issued in Lagos. He emphasized the need for the government to utilize the savings from fuel subsidy removal to implement a range of production-focused policies. These policies should be supported by structural measures to counter inflationary pressures arising from factors such as insecurity, energy costs, and transportation expenses.
Ajayi-Kadir also urged for a comprehensive overhaul of the power sector and the promotion of investment in renewable energy to bolster electricity generation and enhance energy-cost efficiency. He highlighted the importance of leveraging the opportunities presented by the Electricity Act 2023 to improve energy security in Nigeria, encouraging both sub-national governments and private investors to participate in this endeavor.
Furthermore, the MAN director-general called for a significant shift towards the patronage of made-in-Nigeria products by the government in its procurement processes and projects. He stressed the need for a reduction in the country’s dependence on imported goods, advocating for the enforcement of Executive Order 003 across all tiers of government to promote local sourcing of raw materials and reduce imported inflation.
Ajayi-Kadir emphasized the importance of infrastructure development, especially in strategic industrial hubs, to reduce operational and logistical costs and enhance competitiveness. He also highlighted the necessity of maintaining liquidity levels and transparency in the official foreign exchange window while clearing the backlog of $7 billion in foreign exchange obligations.
The director-general urged Nigeria to manage the floating exchange rate system within acceptable bounds and prioritize foreign exchange and credit allocation to manufacturers. He suggested measures to curb the excesses of bureaux de change and encouraged the inflow of foreign direct investments into domestic production-enhancing businesses.
Ajayi-Kadir also called on the Central Bank of Nigeria (CBN) to collaborate with the fiscal authority to align policies effectively. He recommended a sustainable framework for credit interventions in the manufacturing sector and the provision of long-term, low-interest loans by commercial banks to accelerate the growth of the manufacturing sector towards achieving a $1 trillion economy.
Source: Peoples Gazette
