By Charles Nwaoguji
The Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to intensify efforts in addressing obstacles confronting manufacturers in the country.
The Chairman of MAN, Ogun branch, Mr. Wale Adegbite, said there is urgent need to strengthen the real sector by removing all bottlenecks restraining its growth and competitiveness.
Adegbite, who stated this at the 32nd Annual General Meeting (AGM) of MAN in Ota, Ogun State, at the weekend, identified some of the impediments that mar economic activities in the sector to include multiple taxation, lack of dollars for manufacturers, relatively high interest rate charged by banks, epileptic power supply, non-availability of local input and bad roads.
‘’The scarcity and high cost of sourcing for forex as well as higher interest rate by the nation’s financial institutions made it difficult for manufacturers to bring in their raw materials, resulting in decline in production and profit margins, huge layoffs, salary reductions and factory closures,’’ he said.
Adegbite noted that the harsh economic environment was characterised by these factors that discourage further investment and impediments to competitiveness of the sector.
‘’We urge the Federal Government to make dollars available for manufacturers, grant tax incentives and rebates to ease the economic burden and attract further investments,” he said.
The MAN boss said the ability of the Federal Government to tackle those challenges would enable the sector to be optimally productive and play its expected role of employment generation, capital mobilisation, wealth creation and technology acquisition.
Governor Ibikunle Amosun of Ogun State said the present administration would continue to support MAN and new investors to move the state forward positively.
Amosun, represented by Mr. Abimbola Ashiru, the Commissioner for Industry and Commerce, however, commended MAN for its efforts toward industrialisation in the state.
‘’Industrialisation plays a vital role in economic development because it is through this that the nation can eradicate unemployment and poverty rate,” he said.
Amosun, however, enjoined manufacturers to consistently pay their taxes so that the government could provide conductive environment for businesses to thrive.