The Manufacturers Association of Nigeria (MAN) has warned that increasing production costs, high borrowing costs, and low consumer patronage are reducing manufacturers’ profitability and threatening their existence.
During the pre-52nd Annual General Meeting (AGM) press conference in Lagos, Francis Meshioye, MAN President, emphasised the urgent need to address the constraints hindering local manufacturing competitiveness to drive growth and industrialisation.
The 52nd Annual General Meeting (AGM) is scheduled for October 22 to 24, 2024. The theme of the meeting is “The Imperatives of an Intentional Development of the Nigerian Manufacturing Sector.” A key highlight of the AGM will be the 4th Odutola Annual Lecture, featuring Mr. Samaila Zubairu, President & CEO of the Africa Finance Corporation (AFC), as the Distinguished Guest Speaker. With an illustrious career dedicated to African value creation and industrialisation, he will speak at the event. Bola Ahmed Tinubu, GCFR, President of the Federal Republic of Nigeria, will be the special guest of honour.
Meshioye stressed the importance of the manufacturing sector in job creation, productivity, and economic growth but noted that it is currently facing limitations that affect its contribution to the Gross Domestic Product (GDP). MAN aims to work with the government to co-create innovative solutions to improve the performance of the Nigerian economy and promote sustainable growth and development.
He explained that the association has continued to play a critical role in advocating for the interests of over 2,500 manufacturing industries across Nigeria, spanning ten sectors and 70 sub-sectors, representing a substantial portion of the nation’s economic engine.
The president expressed gratitude to the media for raising awareness about the sector’s challenges and advocating for necessary attention from relevant authorities and policymakers. Meshioye also mentioned that the forthcoming 52nd Annual General Meeting will provide a platform to deepen advocacy efforts and engage with members, stakeholders, and partners to evaluate past performance and plan for the future.
The Director General of MAN, Segun Ajayi-Kadir, has called for a reduced electricity tariff approved by the Nigerian Electricity Regulatory Commission (NERC) for electricity distribution companies (DisCos). The approved increase of about 250 per cent in tariffs is deemed unsustainable for manufacturers now.
According to Ajayi-Kadir, NERC and the DisCos are wrong in implementing a 250 per cent increase in the tariff, as it is not viable for businesses to survive such a significant hike. He pointed out that the government is offering a 50 per cent discount to universities and hospitals, indicating that such a steep increase is not sustainable. Ajayi-Kadir emphasised that manufacturers should also be entitled to similar discounts, as they contribute to job creation, tax payments, and the enhancement of Nigeria’s exports.
Ajayi-Kadir mentioned that manufacturers are consulting with their legal counsel and members. Some members are deeply concerned about the survival of their businesses, with some even considering shutting down and sending their workers home in the hope that the government will take notice.
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