Enforcement Of Executive Order To Enhance Support For Local Industries

Industry stakeholders have urged the federal government to enforce the provision of executive orders 003 and 005 targeted at growing domestic production through the patronage of locally produced goods.

Executive Order 003 states that all Ministries, Departments and Agencies (MDAs) shall grant preference to local manufacturers of goods and service providers, in their procurement of goods and services.

Executive Order 005 directs all MDAs to engage indigenous professionals in the planning, design and execution of national security projects and maximize in-country capacity in all contracts and transactions with science, technology and engineering components.

In the Manufacturers Association of Nigeria (MAN) CEO’S Confidence Index (MCCI) survey revealed that operators in the sector expect that the Executive Order will significantly reduce the cost of inputs, particularly Active Pharmaceutical Ingredients (API), which will help boost sales and reduce pressure on the forex.

Speaking on this, the director-general of MAN, Segun Ajayi-Kadir said that the government should enforce Executive Order 003 to enhance support for local industries and ramp-up domestic production by restricting access to forex for the import of products manufactured locally.

MAN said there is need to set up an Inter-Ministerial Committee to monitor and enforce the implementation of the Executive Order 003 and the Public Procurement Act 2007.

“Mandate contractors in Government Ministries, Departments and Agencies at the different tiers of government including security, military and para-military agencies to give priority to the patronage of made-in-Nigeria products in line with the Executive order 003.

“Effectively apply the subsisting margin of preference of 40 per cent and introduce monitoring mechanisms as well as sanctions for non-compliance, including prosecution of offending public servants.

“Train and re-train stakeholders such as MDAs, exporters, staff of the Nigerian embassies and High Commissions on favourable economic diplomacies capable of promoting local and international publicity for made-in-Nigeria products.”

Also, the director/CEO of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf stated that in the spirit of the economic transformation programmes of the current administration, it is imperative to ensure effective implementation of Executive order 003 which prescribes that preferences must be given to local manufacturers of goods and service providers in the public procurement of goods and services by the MDAs.

“There is also Executive order 005 which focuses on improvement in local content in public procurement with science, engineering and technology components. But a policy can only be as good as its implementation. These executive orders have been flagrantly violated overtime without consequences,” he said.

Yusuf appealed to the presidency to ensure compliance by the MDAs with these executive orders in the spirit of current efforts to boost domestic production, grow domestic talents and reform the economy.