The Director General, DG, of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has raised serious concerns over the continuous depreciation of the naira calling on the government to implement immediate measures to alleviate the challenges faced by the manufacturing sector.
Speaking on a ChannelsTV program Wednesday, Ajayi- Kadir, cautioned against excessive import dependence, noting its adverse effects on the manufacturing sector, employment, and the economy’s self-sufficiency.
The DG, spoke on the need for government to focus on creating a conducive manufacturing environment in achieving industrialization, self-sufficiency and job creation.
Addressing short-term measures to alleviate challenges faced by manufacturers, Ajayi-Kadir recommended freezing the rates at which the import of raw materials, spares, and machines is calculated.
According to him, this would provide stability for manufacturers, shielding them from the impact of fluctuating currency values and fostering a more predictable business environment.
He also highlighted the need to freeze the rates at which gas prices are calculated and suggested improvements in security to ensure the smooth supply of raw materials.
Ajayi-Kadir, proposed the government open new credit sources with rates not exceeding 5 per cent, providing quick wins to alleviate pressure on the manufacturing sector.
“As a matter of fact there is no reason why we should be paying for gas in dollars and It is way too high one of the highest in the world. Another thing is you need to improve on security because even those raw materials that we will get locally from the farmers and logistics is becoming a challenge.
“Additionally government should remove the price verification porter because it’s making companies to shut down they are not able to import those raw materials. I think if government does this and of course, opens new windows for us to source our credit at rates that are not lower and that are not higher than 5 per cent. I think these are very quick wins that government can do that can lower the pressure that is upon the manufacturing sector, ” he said.
Highlighting challenges in accessing foreign exchange (forex), Ajayi-Kadir disclosed that manufacturers primarily obtain forex through Bureau De Change, as banks typically offer less than 20 per cent of the required amount.
He called for a reconsideration of this process to ensure manufacturers receive adequate forex to sustain their operations.
