MAN:New Forex policy, others aiding manufacturing revival

…capacity utilisation hits 59.18 %in Q2
…sector exiting recession
The Manufacturers Association of Nigeria (MAN) has stated that manufacturing is getting out of recession, as it has recorded positive growth in Q1 (first quarter) of 2017.

Dr. Frank Jacobs Udemba, president of MAN, who was represented by Mr. Ajayi Kadri, DG, MAN, disclosed this during the breakfast meeting for directors/chief executive officers in Lagos on Tuesday.

Udemba noted that manufacturing sector’s real output growth moved into positive region by recording 1.36 per cent in the Q1 (first quarter) of 2017, against the -2.54 percent recorded in Q4 (fourth quarter) of 2016.

He said: “Capacity utilisation in the sector also increased to 59.18 per cent in the Q2 (second half) of 2016 from 44.3 per cent recorded in the Q1 (first quarter) of that year based on the result of survey of manufacturers conducted by MAN.

“It is, therefore, heart-warming to observe that this growth recovery portends that manufacturing sector is out of recession, which began in the first quarter of 2015.

This success can be attributed to better policy adjustments, especially in the forex management, following the positions of MAN at various meetings and presentations to the government,” he said.

It would be recalled that MAN has been challenged by high import duties on raw materials and other critical infrastructure in the last two years, which had constrained the sector’s growth potential.

Also, MAN has cried out to the Federal Government over multiple taxation,inability to access Forex to enable it to import critical inputs for manufacturing activities, forcing many operators to shut or scale down operations so as to remain in business.

In his speech, Commissioner, of Commerce, Industry and Cooperatives, Lagos State, Prince Rotimi Ogunleye, noted that his ministry is at the concluding stage of the industrial policy review, adding that various laws are being promulgated to ensure adequate security, social welfare and economic well-being of the people of the state.

He pointed out that the state has addressed the issue of multiple taxation, adding that the state inspection team of work places has been harmonised under one umbrella to reduce the incidence of multiple agencies inspections in same company at different times.

The Commissioner said: “We have continued to strive to achieve our vision of becoming Africa’s model mega city. We have created a business-friendly environment that would attract more private sector investments into jobs increase and productivity.”

Also speaking, National President of Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Iyalode Alaba Lawson, stated that for the National Economic Recovery programmes, policies and strategies to truly succeed in revamping the economy, the real sector has important roles to play in tracking the initiatives, offering insightful recommendations, reporting verifiable impact on impact on the real sector and the Nigerian economy at large.

She called on the agencies of government to make known their guidelines and timelines for attaining the ERGP (2017 – 2020) goals but also create opportunities for resourceful feedback from stakeholders, especially the OPS.

Earlier in his welcome address, Prince Oba Okonjie, Chairman, MAN, Ikeja Branch, stated that the forum was an opportunity for stakeholders to interact towards the resolution of challenges faced by manufacturers and other members of the OPS.

He expressed hopes that the Lagos State Government would fully implement its State Scheme on the Ease of Doing Business, urging the government to address difficulties created by the bearucretic bottlenecks in the implementation of the harmonised inspection of workplaces approved by the LASG in October 2016.

Okojie said: “Most worrisome issue is that bills to be enacted are hurriedly passed at the floor of the State House of Assembly without inviting the manufacturers and the OPS in general to the public hearing.”

He noted that MAN has called for the adoption of a resource-based industrialisation policy which is a panacea to raw materials used by manufacturers, explaining that inward sourcing of raw materials has to be critically exploited.

He said that Nigeria is a country blessed with abundant natural resources, such as iron-ore, copper, uranium, lead, tin, etc, but over dependence on importation ruined the multi-billion Dollar Ajokuta Steel Mill which functioned last 20 years ago could have provided.

Ganiyu Obaaro