Manufacturers Lament High Interest Rates, Seek Friendly Policies

Manufacturers under the auspices of the Manufacturers Association of Nigeria (MAN) have lamented high interest rates affecting companies in the industrial sector, noting that made-in-Nigeria goods would continue to be uncompetitive if interest rate remains at double figures.

This is as the president and chief executive, Dangote Group, Aliko Dangote, and MAN have highlighted steps Nigeria must follow to industrialise the nation in the next decade.

Speaking on the sidelines of the opening ceremony of its three-day Made-in-Nigeria exhibition, the president, MAN, Engr. Mansur Ahmed, said there is nowhere in the world where manufacturers borrow at more than 25 per cent to produce and be competitive at the same time, hence, he called on the federal government to formulate policies that would attract foreign direct investments into the sector while also encouraging local manufacturers to generate more employment opportunities.

“The policy environment is the first determinant of the success of our operations; if you have policies that promote local production, such as the Executive Orders, backward integration policies and initiatives in the agriculture sector that is being supported by the Central Bank of Nigeria (CBN), they are all good policies, but we need these policies to be sustained,” he said.

Cautioning federal government not to make contradictory policies of which some will be helpful and others harmful to businesses, he added: “So we need to encourage policies in the financial sector that will make credit more affordable and accessible. We also need to promote policies that make foreign exchange easier to access. We need to encourage those who generate foreign exchange to bring in more foreign exchange.”

He stated that the three-day exhibition was a demonstration of the capacity of the Nigerian manufacturing sector to produce what Nigeria can consume, maintaining that what is left is for government and Nigerians to patronise made-in-Nigeria goods.

He assured that MAN and the sector as a whole will rise to the occasion and ensure that its build on the existing capacities and continue to improve on the quality and competitiveness of its product.

He further urged its members to take advantage of the opportunities created by the policies of the present administration and the emerging continental market to expand their investment, improve their manufacturing operations and the standard of their products.

Also speaking, the director general, MAN, Segun Ajayi-Kadir, said despite the harsh business environment, manufacturers are resilient to continue production in the midst of unfair competition with smuggled and substandard goods.

He also called on the agencies of government charged with the implementation of Executive order 003 and 005 to sharpen their processes, saying MDAs that do not comply should be held accountable for underperformance.

Meanwhile, Dangote, at the second Adeola Odutola lecture in commemoration of the 50th yearly general meeting of MAN, said, Nigeria needs to intensify efforts at promoting industrialisation with specific focus on the attainment of achieving 15 per cent manufacturing sector growth, 20 per cent manufacturing contribution to GDP and 15 per cent growth in export of manufactured products in the next ten years.

He also added that there is need for the nation’s manufacturing sector to achieve a 10 per cent increase in the share of manufacturing to total export merchandise, stronger inter-industry linkage between SMEs and large corporations, improved manufacturing contribution to government tax revenue and 20 per cent increase in manufacturing employment.

He advised that, to industrialise the nation and achieve the next decade target, there is an urgent need for investment in adequate infrastructure, pointing out that adequate infrastructure is the bedrock of industrialization.

He also called for the creation of a business-enabling policy framework, saying, inconsistencies and lack business friendly policy measures are major challenges in Nigeria,

Earlier, the president, MAN, Engr. Mansur Ahmed, said, over the years, the performance of the manufacturing sector has been constrained by familiar challenges that are clearly espoused in its numerous submissions to the government.

He lamented that, the increasing incidence of new tax heads payable by manufacturing concern has become a major threat to the survival of manufacturing companies in diverse ways and essentially responsible for the prevailing increase in the cost of doing business; reduction in investment inflow and additional pain points on manufacturers.