The Manufacturers Association of Nigeria (MAN) yesterday said government reforms in manufacturing are not deep enough to accelerate growth in the sector.
The Chairman of Apapa Branch of MAN, Olukunle Obadina, who spoke at the 47th Annual General Meeting (AGM) of the branch, noted that despite the numerous reforms, which aimed at repositioning economy, the manufacturing sector continued to dwindle.
He noted that the lingering challenges facing the sector had not abated, stressing that long-term loans were needed.
Obadina said these challenges could be attributed to many factors, ranging from funding, especially long-term high interest rate, foreign exchange availability, poor support infrastructure, multiple taxes, levies by various tiers and arms of government, policy summersault/inconsistency, absence of core industries that would produce raw materials, insecurity, absence of inadequate support to encourage the growth of small and medium scale industries.
“Despite the these constraints, the national output grew in real terms by 0.72 percent in the Q2 of 2017 as against 2.06 percent, thereby indicating 2.78 percent point increase over the period under review,” he said.
Similarly, MAN nationaol President, Frank-Jacobs Udemba, noted that manufacturing sector was particularly hit with the hard times, with many firms operating minimally while some were forced to shut.
Udemba said: “The lack-luster performance of the national economy has made it imperative for us to rethink the country’s development strategy so that we would avoid the recent setback that befell the country. To this end, the Federal and state governments should work in synergy, carrying along relevant stakeholders in fashioning appropriate strategies to improve and stablise the economy.”
Udemba urged the government to make efforts that would encourage more investment in manufacturing by providing appropriate incentives and infrastructure that would encourage investors as well as taking a closer look at the regulatory functions of the organs of government that discourage investors.