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