Outgoing MAN President Solicits FG Profile Solutions, Challenges Facing Manufacturers

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The President of Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government not to relent in addressing the challenges being faced by manufacturers in the operating economy environment.

 

The MAN President Dr Frank Jacobs made the called during Association’s 46th Annual General Meeting reports with theme: “Mainstreaming. Policies to Catalyse Industrial Renaissance’’, saying that action should be taken to resuscitate domestic refining of crude oil, supports the efficiency of the generation, transmission and distribution companies and operability of independent power producers for on/off grid power generation.

The outgoing president Dr Jacobs while applauded the federal government for the cooperation and supports throughout his tenure solicited government to entrench better exchange rate management to tilt more to the industrial sector including SMEs, sustain priority forex allocation for raw materials, spare parts and machinery.

 

He also called for the commencement of the implementation of the harmonised taxes and levies to be monitored strictly by the Joint Tax Board (JTB) with a view to enforcing compliance by States and Local Governments.

 

He further called for the reduction of the Company Income Tax (CIT) from the prevailing 30 per cent to 20 per cent to promote higher productivity and employment in the economy.

 

“The tax net should be expanded to capture the non-tax paying firms, particularly those operating in the informal sector and not to increase tax burden on the already tax compliant businesses” he stated.

 

He said there is need for the deployment of appropriate border surveillance technology, improved logistic arrangement at the borders and recruits, train and improve the welfare of customs personnel to guarantee efficient border monitoring.

The MAN President called attention of government to area of the monitoring and enforcement of the Executive Orders 003 and 005 by the Federal Government on the patronage of made in Nigerian goods by Ministries, Department and parastatal Agencies (MDAs).

 

He reiterated the efforts of the government for the policies implemented for 2017 which resulted in a marginally better economic year when compared to 2016 which was bedeviled by recession.

 

“The foreign investment inflow into the country witnessed uptick in the fourth quarter of 2017 from 0.344 billion dollars to 0.378 billion dollars recorded in the corresponding quarter of 2016.

 

It indicates a 9.8 per cent increase over the period. Manufacturing Sector FDI increased to 378 million dollars in the fourth quarter of 2017 from 314 million dollars of the corresponding period of 2016, indicating a 20.47 per cent increase over the period”

 

“Production in the manufacturing sector totalling 9.48 trillion in 2017 against the 8.78 trillion total of 2016 thereby indicating 8 per cent increase over the period.

 

However, the value of manufacturing production in the second half of 2017 was estimated at 4.81 trillion as against 5.02 trillion recorded in the corresponding half of 3016 indicating a 4.2 per cent decline over the period,’’ he said.

 

Dr Jacobs, pointed out the inventory of unsold finished products, inadequate electricity supply, frequent increase in electricity tariff and abnormally high interest rates were pointers to the challenges manifesting in the sector.

“Inventory of unsold finished goods increased to 161.53 billion in the second half of 2017 from 35.42 billion recorded in the corresponding period of 2016. Inventory of unsold manufactured goods totalling 321.12 billion in 2017 against the 90.43 billion of 2016 thus indicating a 255.19 per cent increase over the period” he stated.

 

Dr Jacobs further called on government for the speedy actualisation of the recommendations provided by the association via their various advocacy submissions to the Federal Government to further improve performance of the sector.

 

He lauded the achievements of the Presidential Enabling Business Environment Council (PEBEC) which improved the nation’s ranking on the World Bank EODB index.

 

Dr Jacobs solicited for greater supports to the next Association president, Engr Ahmed Mansur for effective administrations of our great Association, the engine room of the nation industrialization.

 

The Caption Photo: The President of Manufacturers Association of Nigeria (MAN) Dr Frank Jacobs


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