Due to limited and unavailability of manufacturing inputs, the Manufacturers Association of Nigeria (MAN) has once again bemoaned the daily rise in production costs.
According to the authority, these growing expenses are continuing to reduce profitability and jeopardize the survival of this important economic sector. More concerning, according to MAN, is the fact that this industry, which ought to spur economic expansion, productivity gains, and the creation of jobs, is getting smaller due to a number of issues that continuously reduce its ability to increase GDP.
According to the statement, “problems like the unreliable power supply, insecurity, poor infrastructure, lack of foreign exchange, and depreciating Naira are persistent issues that are negatively impacting the sector and threatening our continued existence in this country.”
The body’s president, Francis Meshioye, announced the upcoming 51st annual General Meeting (AGM), which will take place from October 17–19 at the Lagos Oriental Hotel on Victoria Island. The topic of the AGM is,
“What Nigeria Needs to Do to Set the Agenda for Competitive Manufacturing Under the AfCFTA”
He disclosed that the theme was framed by a thorough analysis of the manufacturing sector’s growth trajectory in Nigeria and Africa. It also focuses on the manufacturing sector’s contribution to the realization of the African Continental Free Trade Area Agreement (AfCFTA) and the integration of the continent’s economies as envisioned in Agenda 2063: “The Africa we want.”
Meshioye was sorry to see industry abandoned to perish. According to him, in order for local manufacturers to compete successfully, the government must make a thorough and coordinated effort to remove the binding restriction that restricts local production. It must also seek to attract foreign investment that will lessen the FX chase and guarantee the necessary FX inflow that the nation so obviously needs.
He called on the government to prioritize funding for electricity and infrastructure, fight corruption and insecurity, and implement incentive programs that would encourage indigenous manufacturing rather than the importation of completed goods.
Meshioye went on to say that the AfCFTA window ought to be maximized so that, in terms of both quality and cost, goods made in Nigeria would be favored.
“The benefit of a continental market may prove to be a mirage for the largest economy in Africa unless we address the binding constraints that make the local products uncompetitive.” Despite these inadequacies, we continue to be strong and steadfast in our advocacy strategy, working together to achieve real-world ease of doing business. We look for an environment that fosters competitive advantage with our peers abroad, especially on the continent,” he said.
He continued by saying that the association’s dedication to tackling the issues guided the selection of Olusegun Aganga, the former managing director of Goldman Sachs in London, as the speaker for the third Adeola Odutola Lecture. The lecture’s objective is to propose a policy direction for the incoming government.
