The President of Manufacturers Association of Nigeria stated this that we are aware of the numerous challenges responsible for the persistent lackluster performance of the manufacturing sector.
The President of Manufacturers Association of Nigerian (MAN); Engr Mansur Ahmed, president, during the press conference on 48th annual general meeting of MAN in Lagos, today.
The President of Manufacturers Association of Nigeria (MAN), Engr Mansur Ahmed during Press Conference organized as part of activities of the 48th Annual General Meeting of the Manufacturers Association of Nigeria
During the opening remarks, the MAN President, Engr Ahmed acknowledges that this year marks a turning point not only in the economy but also in the day to day activities in our respective lives.
The 48th Annual General Meeting of the Manufacturers Association of Nigeria was held today been September 10, 2020 at MAN House Ikeja, Lagos
However, he noted that it is expedient that I mention some of these challenges that have mostly impacted manufacturing concerns as contained in the feedbacks from the MAN CEOs Confidence Index report.
The President listed below includes the fact that:
01 Manufacturers are increasingly finding it difficult to source foreign exchange for the importation of raw materials, machinery and spares that are not available locally;
02 Inventory of unsold finished manufactured products has risen to an all-time high of about N402.4 Billion confirming the reality that the disposable income of the consumers has been grossly eroded;
03 Manufacturers are still inundated with numerous, oftentimes duplication of demands from the three tiers of Government in form of taxes, levies, fees, permits, etc;
04 Manufacturing companies are continually overwhelmed with multiple regulations from different regulatory agencies and excessive drive for revenue by government agencies;
05 Dearth of trade facilitation infrastructure, poor access to the nation’s sea ports and longer turnaround time for clearance of cargo collectively stifle the smooth operations of manufacturing concerns;
06 Inadequate electricity supply and incessant increases in tariff without commensurate improvement in generation, transmission and distribution remain key challenges;
07 The manufacturing sector spent over N67.38b on self-generated electricity with energy cost accounting for over 38% of production cost in 2019; and.
08 Genuine exporters are still being owed huge sums of money as backlog of unpaid outstanding from the Export
Ahmed said we also thank the Government for constructive engagement with MAN on the AfCFTA. However, he stated that MAN has some few concerns on the trading Goods Market access. There is a major concern on the Rules of Origin. Why MAN appreciates a simple, transparent and flexible Rules of Origin, it is important for extensive engagement with the productive sectors before finalization of the Agreement, he added.
