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Declare State of Emergency in the Manufacturing Sector, CEOs Tell FG

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  • Declare State of Emergency in the Manufacturing Sector, CEOs Tell FG

Chief Executive Officers of manufacturing companies in Nigeria have said the Federal Government needs to declare a state of emergency in the sector.

The CEOs, whose views formed the Manufacturers Association of Nigeria’s CEOs Confidence Index for the first quarter of the year, said COVID-19 pandemic has worsened the sector’s activity level, adding that the government needs to develop a stimulus package for operators in the sector.

The executive officers suggested that the government could help offset 60 percent of salaries up to three months in affected firms.

In the MCCI report released on Friday, the CEOs said: “The Federal Government should declare a state of emergency in the manufacturing sector of Nigeria in order to be acquainted with the status of the sector and craft strategies for quick recovery backed with sustainable stimulus packages.

“It should establish a special bailout fund for the manufacturing sector with set deliverables on the number of jobs to be created, the volume of export, quantum of locally raw materials utilised and projected revenue.

“Government should reduce the financial pressure on companies occasioned by COVID-19 by compensating manufacturing concerns that are forced to shut down with 60 per cent of employees’ salaries for at least three months to prevent laying off of employees and massive unemployment.”

Also, the CEOs called for support regarding existing loans procured by manufacturers, saying the terms should be reviewed while they suggested that interest rates should be reduced to five percent with a two-year moratorium.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.