• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Sunday, June 8, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Manufacturers Query Effect Of Rising Public Debt On Production

by Olushola Bello
2 years ago
in Cover Stories, Featured, News
manufacturers
Share on WhatsAppShare on FacebookShare on XTelegram

The Manufacturers Association of Nigeria (MAN) has stated that the rising domestic debt is highly crowding out private investment in the manufacturing sector by reducing credit availability and forcing a hike in lending rates.

Advertisement

This was contained in the MAN CEO’s Confidence Index (MCCI) for the first quarter of 2023.

The report stated that “in the absence of commensurate infrastructural development and significant success in poverty-reduction and industrialisation programmes, Nigeria’s bloated debt profile has become a source of worry.”

As of December 2022, the country’s total debt had escalated to N46.25 trillion, marking about 17 per cent surge from the record of December 2021. The debt composition revealed that while domestic debt stock accounted for 59.6 per cent of the total debt, external debt stock contributed 40.4 per cent.

Director-general of MAN, Segun Ajayi-Kadir, said: “Unfortunately, the country’s debt profile has ballooned to over N77 trillion following the approval of the securitisation of the Ways and Means advances. A whooping debt service-to-revenue ratio of over 100 per cent may spell doom for the new administration leaving it to continue the borrowing spree or incapacitated to provide critical infrastructure needed to boost the manufacturing sector and kick start the recovery of the economy.”

RELATED

We Suffered In Hands Of Bandits, Kukah’s Brother Narrates Experience

Boko Haram Abducts Catholic Priest, 9 Others, Kills 1 In Borno

56 minutes ago
Youth Empowerment On The Radar Of Dikko Radda

Katsina Govt Moves Against Threats To Peace, Stability

58 minutes ago

According to him, the domino effects of escalating public debt on the manufacturing sector are endless, with external debts mostly serviced in foreign currencies, hence causing high demand for foreign currencies which further depreciates the naira and makes importation of non-locally produced critical inputs highly expensive for manufacturers.  

“Moreover, higher debt servicing is consuming a greater volume of forex and worsening the forex scarcity that has plagued the manufacturing sector for many years. Higher debt repayment requires increased revenue.

“The Nigerian government has continued to breed a harsh business environment by its indiscriminate imposition of high and multiple taxes on manufacturers all in a bid to generate revenue,” he said.

Kadir further stated that the huge public debt led to low foreign investment and foreign capital inflow which worsened the forex scarcity that has remained a bone in the throat of manufacturers.

“The country’s debt crisis,” he went on, “is not a result of inadequate revenue and it is anti-growth to view manufacturing taxes as the last resort for curbing the debt problem. The manufacturing sector which has always been at the receiving end has not felt any significant impact of the debt finance on the numerous challenges that have bedevilled its performance in many years.

“Infrastructure decadence, forex scarcity, credit crunch and naira depreciation have become bones in the throats of MAN members despite the humongous increase of over 410 per cent in the country’s debt profile in the last eight years.”

MAN added that a debt stock of N77 trillion was an enormous burden to inherit and would most likely limit the achievements of the new administration.

He recommended increment in the revenue base by widening the tax net through an enhanced data capture of business operators in the informal sector; strictly implementing the Voluntary Assets and Income Declaration Scheme (VAIDS) through the Federal Inland Revenue Service (FIRS), and further identifying and amending the loopholes in the tax laws in order to reduce the leakage of tax revenues, among others.

 


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

START EARNING US DOLLARS as a Nigerian ($35,000) monthly. Companies are sacking their workers due to AI (artificial intelligence), business owners are in panic mode. Only the smart will make it. Click here


Tags: Man
SendShareTweetShare
Previous Post

A Homily: Speaking Correct English

Next Post

Defence Ministers, Service Chiefs Get One Year To End Insecurity

Olushola Bello

Olushola Bello

You May Like

We Suffered In Hands Of Bandits, Kukah’s Brother Narrates Experience
News

Boko Haram Abducts Catholic Priest, 9 Others, Kills 1 In Borno

2025/06/08
Youth Empowerment On The Radar Of Dikko Radda
News

Katsina Govt Moves Against Threats To Peace, Stability

2025/06/08
Contractors, Delta Govt Trade Blame Over Alleged N78bn Contract
News

Delta Govt Approves Repair Of Palace Road, N6.7bn UBEC Grant

2025/06/08
HURIWA Urges Federal Gov’t To Immortalise Mike Ejeagha
News

HURIWA Urges Federal Gov’t To Immortalise Mike Ejeagha

2025/06/08
Private Sector Participation Critical To  Development Of Niger Delta – Expert
News

NDDC Will Sustain Support For Digital Transformation In Niger Delta, Says Ogbuku

2025/06/08
Edo Gov’t Directs Okpella Kingmakers To Begin Selection Of New Okuokpellagbe
News

Gov Eno’s Defection Will Unlock Opportunities In South-South – Okpebholo

2025/06/08
Leadership Conference advertisement

LATEST

Boko Haram Abducts Catholic Priest, 9 Others, Kills 1 In Borno

Katsina Govt Moves Against Threats To Peace, Stability

Delta Govt Approves Repair Of Palace Road, N6.7bn UBEC Grant

HURIWA Urges Federal Gov’t To Immortalise Mike Ejeagha

NDDC Will Sustain Support For Digital Transformation In Niger Delta, Says Ogbuku

Gov Eno’s Defection Will Unlock Opportunities In South-South – Okpebholo

No Trust, No Police

Risk Managers Seek Review Of Nigeria’s Early Warning Systems

$300m AMCE To Curb Medical Tourism Drain

COAS Lauds Army Veterans, Reaffirms Support For Welfare

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.