AfCFTA: Initiate policies that encourages SMSE, MAN tasks FG

Joy Obakeye

The Manufacturers Association of Nigeria (MAN) has called on the federal government to initiate policies that would encourage startups in the Small and Medium Scale Enterprises (SMSE), saying the sector contributes over 80 per cent of the Gross Domestic product, and if properly incentivised and supported could be able to ramp up production and total exports of the country.

This was disclosed in a statement signed by the Director-General of MAN, Segun Ajayi-Kadir.

He noted that, “We are suggesting the need for the establishment of the National Action Committee on Africa Continental Free Trade Area (AfCFTA)” to coordinate relevant Ministries, Departments, Agencies of Government and relevant Private Sector Groups to drive the implementation of the AfCFTA readiness projects and initiatives.

“Going forward, we count, very strongly, on the commitment to enhance the capacity of the manufacturing sector and indeed other economic actors to take advantage of the opportunities inherent in the continental free trade area and to, quite importantly, mitigate the multifarious risks. We also expect that MAN would be part of the national structures and processes that would be put in place by the federal government to manage the process.

“On the side of the private sector, we need to optimize our processes and innovate to outperform our contemporaries in the other countries of Africa. Of course, we shall work together to prevail on the Government to do its own bit by providing the conducive atmosphere.

“The infrastructure challenges such as poor electricity supply, deplorable road network and lack of adequate transportation system (rail network) etc. that constitute the supply constraints should be removed.

Needed policies to improve the macroeconomic environment should be put in place and existing ease of doing business initiatives strengthened, especially to lower cost and grow existing capacities.

To aid the competitiveness of local manufacturers, government should strongly address the issue of multiple taxations and over-regulation of the production sector which has added to the existing myriad of challenges.”

Ajayi-Kadir, further explained that MAN actively participated at the Steering Committee level as well as the Technical Working Group.

“It was based on the outcome of these processes that Mr President was advised and he did append his signature at the just concluded Extra-Ordinary Session of the African Union.”

“We are glad to note that the Federal Government did carry out an all-inclusive nationwide consultation and just like MAN conducted a country-specific study on the potential impact of Africa Continental Free Trade Area (AfCFTA).”