Manufacturers Proffer Solutions to Forex, Energy Crisis
Manufacturers under the auspice of the Manufacturers Association of Nigeria (MAN) has given some recommendations to the federal government on ways the forex and energy crisis hindering the growth of their industry can be addressed.
MAN emphasised that the foreign exchange and energy crises are responsible for the unfavourable movements in manufacturing indicators.
Segun Ajayi-Kadir, Director-General, (MAN) disclosed this at the Commerce and Industry Correspondent Association of Nigeria (CICAN) workshop and recognition of individuals and firms on Thursday in Lagos where association reeled out some recommendations.
In line with the event theme, “Manufacturing: Despite FX and Energy Crisis”, Ajayi-Kadir said that the challenges of FX and Energy must be adequately addressed to arrest further degeneration in the performance of the sector.
“In doing that, we consider the following measure critical such as the allocation of significant proportion of available foreign exchange to the productive sector, particularly manufacturing.
“Further investment in the electricity value chain must be carried out and government must commit to adding 10,000 MW to the current electricity distributed in the country.
“Also, we must embrace and support significant development of renewable energy mix as the country has huge potentials for solar and wind,” he said.
Ajayi-Kadir added that the scope of road infrastructure should be expanded and the tax credit scheme developed and refurbished.
“Expanding the scope of Road Infrastructure, Development and Refurbishment Investment Tax Credit Scheme. Incentivization of investment in local development of raw materials; Suspension of the 15% levy on imported wheat”
Other recommendations made are:
“Address prevailing concerns of the beleaguered manufacturing sector, vis Non-implementation of the planned increase in excise duty on non-alcoholic and alcoholic beverages, tobacco, wine and spirits.
“The increase is in violation of the roadmap set by Government itself for the period 2022-2024. Already, this increase is negatively impacting the performance of the sector and further increase will bring it to its knees and lead to divestment and closures.
“Also, the envisage revenue boost by government will not be realized. The manufacturing industries in the Harbour industrial sector in Onitsha that were devastated by the flood recently should be assisted to recover from their colossal loses and preventive measures taken to forestall future occurrences.
“The committees of the National Assembly that extend their oversight functions to manufacturing industries and require their CEOs to produce tons of documents and evidence of compliance that are readily available with the relevant statutory regulatory agencies should be stopped. This is an unnecessary burden, diversion and very expensive venture.”