Manufacturers seek govt intervention in addressing rising production costs

THE Manufacturers Association of Nigeria (MAN) Apapa branch, has sought government’s intervention in addressing high cost of production arising from poor infrastructure and high cost of finance, policy inconsistency, poor investment climate and weak regulatory institutions.

    Specifically, the manufacturers raised concerns on the need for government to increase their access to long term loans at single digit interest rates, accede its request for zero per cent duty on all manufacturing machinery and equipment to facilitate retooling and replacement of obsolete ones as well as removal of value added tax (VAT) on raw materials used in the production of non-VAT-able products.

    Chairman of the MAN branch, John Alaya, while speaking at the association’s yearly general meeting in Lagos at the weekend, said it has become imperative that government unbundles and unlocks the hidden potential in the manufacturing sector for it to be the driver of the nation’s economy and join the league of industrialised nation.

     Aluya added that the challenge for the country was to reach the threshold of competitiveness by converting known challenges into opportunities and harnessing the potential in the nation’s abundant resources.

    He observed that with over 65 per cent of industries in Lagos state, it has become imperative that the state government looked at workable and acceptable framework for industrial participation in its sphere of activities.      

  “Lagos is home to about 2000 industrial complexes, 10,000 commercial ventures and 22 industrial estates and contributes 30 per cent to the nation’s GDP, home to major national maritime cargo, over 80 per cent of international aviation traffic and over 595 of Nigeria energy consumptions. It is not a disadvantage to be a latecomer in the sphere of industrialisation today. The country can pass several stages of development and move into a high degree of industrialisation,” he added.

     Director-General, Raw Material Research Development Council, Prof. Peter Onwualu, while speaking on the theme, “increasing the utilisation of local raw materials through product research to enhance competitiveness,” said Nigeria was ranked 148 out of 196 countries and also classified in the report as factors driven economy as oppose to efficient innovation.

     He said the manufacturing sector in Nigeria is facing a low level of local innovation, and poor infrastructure. For science and technology to translate and improve quality of life, wealth and employment creation, it must focus on bringing new goods and services to the market place.

  He explained that such competitiveness must relate to the ability and performance of a sub-sector to sell and supply goods and services in a given market, while increasing productivity.

    On the way forward, Olayinka harped on the real sector’s adoption of the triple helix approach to engender and enhance industrial competitiveness, as well as, promote bio-enterprise development that will improve resources and industrial linkages.

By Femi Adekoya and Adeniyi Adunola