By Merit Ibe

Nigerian manufacturers are battling with various challenges which ultimately affect their productivity, capacity utilisation and especially competitiveness in the Africa Continental Free Trade Agreement (AfCFTA)

The operators are worried that the commitment to build a competitive sector, remains unrealised due to a plethora of challenges, lamenting that with the African Continental Free Trade Area (AFCFTA), the ability of manufacturers to compete with other African countries is obviously in doubt. 

With the mortality rate of  factories rising by the day, unless drastic measures are taken, manufacturers fear that it would probably take a miracle for factories to survive when AfCFTA fully comes on stream.

Chairman, Manufacturers Association of Nigeria (MAN), Apapa branch, Frank Onyebu told Daily Sun that the sector is  bedevilled with dilapidated infrastructure, inadequate electricity supply, forex illiquidity, overregulation, insecurity, dysfunctional port system, low consumer demand, poor operating environment, to mention but a few, which have retarded its growth seriously.

 “It has been particularly daunting for the manufacturing sector due to a number of oft-repeated challenges. Our quest to achieving our goal of being one of the key drivers of Nigeria’s economy through massive job creation is threatened by these challenges.

“The poor state of infrastructure in Nigeria has persisted for years.  While appreciating the enormity of challenges facing the government and acknowledging efforts being made in tackling these challenges, Onyebu urged government to give serious thought to the issue  of infrastructural deficiency. “Most of our factories are no longer accessible especially the Amuwo-Odofin and Kirikiri industrial clusters. This is despite the  fact that companies within these cluster pay their taxes to the government and its numerous agencies…”

“The situation is made worse during the rainy season when the roads become completely submerged by flood. This results in huge losses for our members. It is not surprising, therefore, that most manufacturers are relocating in their numbers.

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“We implore the government to deploy resources to upgrade the access roads within the entire industrial clusters around Apapa. I must warn that Apapa industrial clusters would soon become a shadow of itself unless urgent action is taken. There has been huge job losses as well as revenue losses to the government.

Onyebu asserted that an option is for the government to adopt the PPP to enable willing manufacturers to develop public infrastructure within their domain for either tax holidays or any form of incentive.

He called for policies and measures to be put in place to make the operating environment conducive for investment. 

The current economic downturn calls for measures that would keep manufacturers in business especially with the AfCFTA.

For the former chairman of the Paint Manufacturers Association of Nigeria(PMA) and Managing Director, Voda Paint Nigeria, Rotimi Aluko, the cost of doing business in the country is extremely high, urging government to support manufacturers. “The harsh business environment is a threat to businesses in Nigeria in terms of AfCFTA. It will make our products uncompetitive.

“Further taxes are not helping the business community, it continues to make Nigerian products uncompetitive. Multiple taxes are killing businesses. It’s easier to do business in other west African countries, than Nigeria.

“The cost of doing business which has to do with supervisory, registration, regulation,multiple agencies is so high and needs to be addressed. Government has to support businesses, so that the country does not become a dumping ground; which will increase unemployment and effect the economy negatively, with the AfCFTA