By Merit Ibe
To accelerate Nigeria’s economic development, the Manufacturers Association of Nigeria (MAN) has set fresh agenda for the incoming government to grow economy.
Top on the agenda of MAN, include stabilising the economy and resolving the insecurity challenge.
Outlining its expectations of the new administration, the Director General of MAN, Segun Ajayi-Kadir, urged the president elect to set specific targets to be accomplished within his first 100 days in office after inauguration.
Ajayi-Kadir noted that though MAN is an advocacy group and apolitical, it has expectations from the incoming government and looks forward to working with it to accelerate the economic development of Nigeria, particularly the manufacturing sector.
“This is more reason why MAN’s blueprint for the accelerated development of manufacturing in Nigeria was widely circulated to the leading political parties during the campaign season.”
The DG emphasised the overarching priorities of the association which are the security issue and the economy.
He said there should be a realisation that the economy is in a parlous state and needs a quick rejig and reset of priorities to stop the haemorrhage.
Ajayi-Kadir offered suggestions in a must-do list within the first 100 days after the swearing-in which include for the new government to permanently resolve the lingering difficulties with the currency transition if it has not been completely addressed by the outgoing government.
“Direct the CBN and ensure that it complies with the prioritisation of foreign exchange to the productive sector, particularly to manufacturers to import raw materials, spares and machinery that are not locally available. “And taking immediate and time-bound steps to achieve the unification of the foreign exchange windows.
“Direct the NERC to admit all qualified applicant companies into the Eligible Customer Scheme in order to allow them access to power as stipulated in the Electric Power Sector Reform Act 2005.
“Direct all relevant agencies of government to ensure that the electronic call-up system at ports aimed at redressing the congestion works without fail.
“Ensure that the Finance Bill 2022, if not assented to before the transition, includes the critical inputs of the organized private sector.
In particular, the jettisoning of the highly objectionable removal of the 10 per cent investment allowance on the acquisition of plants & machinery (in the Company Income-tax Act, section 32). “Additionally, to ensure that the imposition of the 0.5 per cent levy on eligible imports from third countries is limited to goods that we have capacity to produce locally and quite importantly, exclude raw materials that are not locally available.
“The input of the organized private sector on the CEMA bill should also be taken on board before the amendment bill is signed into law.
“Take a definite stand by ordering the removal of fuel subsidy. The decision should be outright and immediate steps should be taken to commence removal.
“Announce a special policy initiative to address the revival of closed and distressed industries, particularly in the northeast where 60 per cent of our member companies have closed.
“Craft and announce a special policy initiative to leverage diaspora expertise and investment to address evident gaps and help to boost the performance of the economy.
“Direct all ministries, departments and agencies of government to unfailingly comply with Executive Order 003 on the patronage of made-in-Nigeria products. In this regard, there should be a strict application of the margin of preference, effective monitoring and periodic evaluation of compliance,` and appropriate sanctions meted out to MDAs acting in breach of the executive order.
“Announce a special policy initiative to de-risk manufacturing and unleash adequate funding for the sector through effective funding of special lending windows.”
The association is desirous to see all recommendations implemented by the new administration, nothing that it believes that if the prosperity of Nigeria is paramount, then the productive sector should be given maximum priority for the general good of all in terms of wealth and job creation for the nation.
“Our expectations, as manufacturers, are coming against the backdrop of a reduction in the Manufacturers CEO Confidence Index (MCCI) in the last quarter of 2022. As you are aware, the MCCI is a quarterly survey of MAN to gauge the pulse of the operators and trends in the manufacturing sector.
“We mirror their response to the movement in the macroeconomy and government policies using primary data that is mined through a direct survey of 400 CEOs.
“We observe diffusing factors like current business conditions and business conditions for the next three months; current employment conditions and employment conditions for the next three months; and current production levels and production levels for the next three months. In the latest survey for the fourth quarter of 2022, the aggregate index score declined from 55.4 points in Q3 2022 to 55.0 in Q4 2022.
“This shows that CEOs of manufacturing industries have less confidence in the economy.”