By Bimbola Oyesola
President Muhammadu Buhari yesterday assured members of the Manufacturers Association of Nigeria (MAN), that the Federal Government will remove bottlenecks and create a more business-friendly environment to enable the private sector contribute its quota towards the recovery of the economy.
The President, while speaking at the 44th Annual General Meeting (AGM) of MAN in Abuja, yesterday said his administration is convinced that the key to economic diversification and the nation’s survival lies in agriculture and the manufacturing sector.
“A strong manufacturing sector will create more jobs and wealth for our people. It will usher in sustainable economic prosperity because we will produce what we consume as a nation and generate foreign exchange by exporting any surplus”, he said, noting that the theme of the MAN’s annual lecture, ‘Diversifying the Nigerian Economy: the Role of Government in Manufacturing’ was quite apt as it is coming at a time when the nation is faced with the urgent need to diversify the economy in the light of dwindling price of crude oil in the global market. The President said the nation’s manufacturing sector is well positioned to be a major driver of economic growth because of the country’s immense natural resources and the entrepreneurial spirit of Nigerians.
He stated, “Government is therefore focused on implementing necessary policies and strategies aimed at unleashing the full potentials of manufacturing in Nigeria. We will rely heavily on your ideas and inputs at all stages of formulation and implementation of new industrial policies.”
Buhari explained that the strategic plan of his administration to boost the country’s manufacturing activities is supported by the Nigeria Industrial Revolution Plan (NIRP) and the National Enterprises Development Programme (NEDEP), stressing that these programmes, present a clear road map towards an industrialised Nigerian economy.
Commending the manufacturers for their show of commitment, demonstrated through investments in Nigeria’s economy despite daunting challenges. The President said his government is equally working on improving the patronage of locally made goods, bridging the gap between skills required by industry and those provided by the nation’s educational institutions and access to finance for the Small and Medium-Scale Enterprises (SMEs).
“We recognise that MAN and the other members of the Organised Private Sector (OPS) groups are our key stakeholders in this journey and we will continue our engagement with you.
As events unfold in the coming months, many of you will be called upon to play critical roles in the implementation of this administration’s agenda. I implore you to avail us your wealth of experience so that together we can uplift our nation’s economy and social well-being”, he said.
Earlier in his presentation, the MAN President, Frank Jacobs, presented some proposals which he said could get Nigeria out of its present difficulties, adding that some other countries had passed through similar situations but overcame them.
According to him, what is essential are key policy actions on the side of government and commitment by the citizens.
He said, “Policy actions would include: strong government commitment to resolving the challenge; strong focus on price stability and economic growth; timely and forceful reactions of both monetary and fiscal policy makers; monetary and fiscal policy authorities working together; reduced interest rates on main refinancing operations; well designed and implemented stimulus packages; reduction of company income tax (CIT) to 15 per cent for manufacturers as a way of attracting further investments.
Government support for the banking sector to maintain the flow of credit, and low interest rates of not more than 5 per cent for the manufacturing sector.”
The guest speaker, Alhaji Aliko Dangote, President and Chief Executive Officer, Dangote Group, in his presentation, advised that for the country to get out of the woods, Nigerians need to stem the massive outflow of foreign exchange by weaning themselves of the propensity to import what the nation’s can efficiently produce locally.
“Economic diversification through value addition for our domestic and export markets is the only way Nigeria will recover from its present economic predicament and achieve high levels of inclusive growth over a sustained period of time”, he said.
For the success of diversification, he also called for more articulation of clear sector specific policies along with incentive packages that are commensurate with the risk inherent in each sector.