MAN Applauds President Tinubu’s Executive Orders to Address Threats to Manufacturing Sector

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The Manufacturers Association of Nigeria (MAN) has expressed its commendation to President Bola Ahmed Tinubu for taking decisive action to address the looming existential threat faced by several sub-sectors within the manufacturing landscape. The association highlighted the historical context, citing the adverse impact of the previous administration’s upward revision of excise duty without proper impact assessment and stakeholder consultation.

In a statement sent to The Ameh News (TAN) which was endorsed by Segun Ajayi-Kadir, mni Director General of the Manufacturers Association of Nigeria (MAN) saying The 2023 fiscal policy measures introduced additional tax burdens, such as the arbitrary green tax and escalated excise duty on alcoholic beverages, wines, and tobacco, which violated the government-approved roadmap. According to him these measures contradicted the government’s commitment to policy stability, investment promotion, and business confidence in the manufacturing sector. Manufacturers in Nigeria were already grappling with challenges like low patronage, high borrowing costs, and significant energy expenses in an inflationary environment, making the new tax burdens overwhelming.

Ajayi-Kadir continue, the unwarranted escalation of excise duty and the introduction of new taxes threatened to disrupt business projections and negatively impact the purchasing power of Nigerian consumers. However, President Tinubu’s recent executive orders have effectively addressed the concerns of manufacturers, he said the suspension of the burdensome aspects of the 2023 fiscal policy measures, which imposed additional tax burdens on the manufacturing sector, is a welcome development. It has removed a significant obstacle to operations and productivity, allowing manufacturers to regain confidence in their projections and plans for the year, DG added.

“The Manufacturers Association of Nigeria expresses its satisfaction with the actions taken and urges the Customs Service to halt the requirements for compliance with excise escalation and green tax registration. He stressed that MAN also emphasizes the importance of fruitful dialogue and engagement with the government to enhance the manufacturing environment and the overall economy. The sector already faces various challenges, including high interest rates, inadequate long-term funding, poor infrastructure, low demand for locally manufactured products, high energy costs amid low energy supply, and multiple taxation, he noted.

“MAN looks forward to further engagements that will support President Tinubu’s new policy measures and effectively mitigate emerging challenges. It acknowledges the potential issues related to forex inadequacy and calls for pragmatic measures to ensure a significant inflow and strategic allocation of foreign exchange.

“While recognizing the government’s need for funds, MAN advises a focus on expanding the tax base by developing a strategic framework to bring a substantial number of individuals and businesses into the tax net who are currently untaxed. Pursuing tax increments on already burdened industries hampers the growth of the manufacturing sector and does not serve the overall interests of the citizens, who are the ultimate consumers.

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