The Manufacturers Association Of Nigeria (MAN), at the weekend appealed to the government to take urgent action in order to protect the manufacturing sector from collapse .
Just as high cost of diesel and other productions in put continue to threaten the survival of the manufacturing sector.
According to Segun Ajayi-Kadir, Director General of MAN, “The Manufacturers Association of Nigeria is greatly concerned about the implications of the over 200% increase in the price of AGO on the Nigerian economy and the manufacturing sector”.
Noting that more worrisome is the deafening silence from the public sector as regards the plight of manufacturers.
“Four obvious questions that readily come to mind that are seriously begging for answers are- What can we do as a nation to strengthen our economic absorbers from external shocks? Should manufacturing companies that are already battered with multiple taxes, poor access to foreign exchange and now over 200% increase in price of diesel be advised to shut down operations?”
“should we fold our arms and allow the economy to slip into the valley of recession again? Is the nation well equipped to manage the resulting explosive inflation and unemployment rates?”
Stressing that in the short term the disruption occasioned by the invasion of Ukraine by Russia will continue to heavily ruffle the global energy space and upset the supply of petroleum products thereby causing persistent increase in the price of refined petroleum products including AGO.
Pointing out that in the long run, it will result in enormous increase in the prices of other manufacturing inputs like wheat, maize, fertilizers and the raw materials.By the time the current domestic reserve of manufacturing inputs is exhausted, in the face of acute shortfall in supply, we are afraid that the prices of manufactured products will soar.
“Ironically, the Nigerian economy is completely dependent on importation of refined petroleum products including diesel and other vital manufacturing raw materials and there are currently no sufficient alternatives.”
The association suggests that “in light of the gravity of the precarious situation that we have found ourselves as a nation and the looming dangers ahead, the expectations of manufacturers in Nigeria are as follows: that Government should as a matter of priority develop a National Response and Sustainability Strategy to address challenges emanating from the ongoing invasion of Ukraine by Russia;”
“Continue to support manufacturing to accelerate the process of recovery from the aftermath of COVID-19 and previous bouts of recession to avert the complete shutdown of factories nationwide with multiplier effect on the employment;”
“Issue licenses to manufacturing concerns and operators in the Aviation industry to import diesel and aviation fuel directly to avert the avoidable monumental paralysis of manufacturing activities arising from total shut down of production operations and movement of persons for business activities;”
“As a matter of urgency,address the challenge of repeated collapse of the national grid (twice within a week), which is causing acute electricity shortage in the country, especially for manufacturers;”
“urgently allow manufacturers and independent petroleum products marketing companies to also import AGO from the Republic of Niger and Chad by immediately opening up border posts in that axis in order to cushion the effect of the supply gap driven high cost of AGO;”
“Remove VAT on AGO as instant stimulus for immediate reduction in price and expedite action in reactivating or privatizing the petroleum products refineries in the country; ”
“Restrict the export of maize, cassava, wheat, food related products and other manufacturing inputs available in the country; and grant concessional forex allocation at the official rate to manufacturers for importation of productive inputs that are not locally available”
The Manufacturers Association of Nigeria (MAN) is the voice of manufacturers in Nigeria and the leading Business Membership Organization in West Africa and the African Continent.
The Association represents the interests of over 3,000 manufacturers (small; medium; large and multinational industries) spread across 10 sectors, 76 sub-sectors and 16 industrial zones and currently leading the Federation of West African Manufacturers Association and Pan African Manufacturers Association.
