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Tag: Manufacturers Association of Nigeria (MAN)

  • MAN urges CBN on cashless policy

    By Chikodi Okereocha

    The Manufacturers Association of Nigeria (MAN) has urged the Central Bank of Nigeria (CBN) to explore other options to achieve its cashless policy scheduled to be fully implemented from March 31, 2020.

    MAN urged CBN to consider the use of the carrot rather than the stick approach, noting that the implementation of the cashless policy on withdrawals may have a negative impact on Micro, Small, and Medium Enterprises (MSMEs), who are the engine room for the economy’s growth and employment generation.

    The apex bank, in a circular, directed Deposit Money Banks (DMBs) to charge on deposits, in addition to existing charges on withdrawals, three per cent processing fees for individual accounts, withdrawals in excess of N500, 000 and five per cent for corporate accounts withdrawal in excess of N3 million.

    It also introduced processing fees for cash lodgments of two per cent above N500, 000 for individual accounts and three per cent for lodgment above N3 million for corporate accounts.

    MAN said though one might agree with the CBN governor that this was in the public interest to promote an efficient payment system via the cashless policy, there was the need to examine the route the Bank chooses to achieve that objective.

    “This is the crux of the matter and it appears to be a recurring decimal in the administration of our monetary policy interventions,” MAN Director- General Segun Ajayi-Kadir said, in a statement made available to The Nation.

    “Apart from the fact that the policy at inception, was put in place without consultations, sensitisation, explanation or rationale for its introduction; the policy was presented as the only way to achieve the much-desired cashless or less cash economy,” Ajayi-Kadir added.

    He said the explanation given  was more of empathising with the banking public for the “inevitable hardship” the cashless policy would impose on them, adding that it would also appear that the applicable percentages did not take cognizance the existing and long-standing charges on withdrawals.

    The MAN boss said there are clearly more than one road to the market. Hear him: “In this instance, the CBN has at least, two options to achieve the latest progression towards the desired cashless economy; to penalise non-compliance or to incentivise compliance. It would appear that the CBN has chosen the former.

    “What I mean is that rather than introduce gains for those who embrace cashless transactions, it has elected to punish those who have not, including those operating in genuinely large cash-driven economic activities.

    “There is also a huge concern over the inadequacy of the needed cashless economy infrastructure, which the Money Deposit Banks are not doing enough to upscale or do so at a disproportionate additional cost to the users.”

  • MAN advises Govt. on AfCFTA

    THE Manufacturers Association of Nigeria (MAN) has advised the Federal Government to avert Africa Continental Free Trade Area Agreement (AfCFTA) abuse.

    The agreement was signed by President Muhammadu Buhari on July 7, at the African Union (AU) Extra-Ordinary Meeting in Niamey, Niger Republic.

    The group also advised the government to constitute a National Action Committee on AfCFTA to coordinate Ministries, Departments, Agencies (MDAs) of government and relevant private sector groups to drive the implementation of the AfCFTA readiness projects and initiatives.

    In a statement yesterday, the group urged the Federal Government to adopt technology-based border policing and surveillance to check abuse of the intra-Africa Trade protocols and trade malpractices.

    Read Also: How to benefit from AfCFTA, by NACCIMA President

    MAN said there was need for the government and other private sector groups to critically analyse the market and strategically capacitate Nigeria’s domestic economic actors to benefit maximally from the AfCFTA.

    The group also stressed the need to work towards having a beneficial trade engagement in Africa by effectively mitigating the risks and taking advantage of the opportunities of a 1.2 billion market and $2.5 trillion gross domestic product (GDP).

    “You would recall MAN had earlier cautioned against signing the agreement without first adequately consulting the relevant stakeholders and carrying out a country specific study to assess the potential impact of the agreement on the manufacturing sector in particular and the Nigerian economy in general,” the statement read in part.

  • ‘Nigeria spends $10b on foreign certified welders yearly’

    Despite the fact that President Muhammadu Buhari signed the Executive Order Five to control job losses, Nigeria still spends over $10 billion yearly to hire certified welders into the country according to the Managing Director, Mudiame International Limited, Sunny Eromosele

    He said the nation’s current economic situation and unemployment crisis may worsen if the Nigerian Content Development and Monitoring Board (NCDMB), Manufacturers Association of Nigeria (MAN) and other stakeholders fail to double efforts on the developing of local content in the country.

    He spoke at a briefing on National Welding Capacity Development Plan in Abuja.

     While the executive order aimed at increasing domestic production of goods and services and creating jobs in science, technology and engineering on one hand, the order equally prohibits issuing of visas to foreign workers whose skills are readily available in Nigeria.

    Eromosele, who also operates Mudiame Welding Institute, stated the country lacks the strategy necessary for implementing the policy.

    He said the current skill gap has resulted in the influx of foreigners into the country such that the nation’s current railway projects and the ongoing Dongote Refinery are being handled by over 90 per cent Indians and Chinese.

     Eromosele, who noted that MAN and other stakeholders must pressure government to set up proper implementation mechanism for executive order five, especially in the areas of strengthening institutions, said critical sectors of the economy is being overlooked in the country.

    Eromosele described as unfortunate the fact that international communities compel their standards on Nigeria in the event of project execution in the country.

    He decried the idea of personnel certification system run by most International Oil Companies (IOCs), especially Saipem, Chevron and others.

    “We need the harmonisation of our personnel’s qualification so that the ideas of personnel certification system by some companies like Saipem, Chevron and others will be eradicated.

    “Role of Stakeholders must also be harmonised so the stakeholders will have common goals and role to play on all project executed depending on their areas of specialisations,” Eromosele added.

    He urged Buhari and the NCDMB being led by Simbi Wabote to channel efforts towards developing a key sector like welding.

  • Manufacturers, artisans mobilize to welcome Buhari in Edo

    Members of the Manufacturers Association of Nigeria (MAN) in Edo State, artisans and market women have commenced mobilization of their members for the scheduled visit of President Muhammadu Buhari to Edo State for the commissioning of the Edo-Azura Power Plant on Tuesday, November 27.

    The President is also to attend the Chief of Army Staff Conference, holding in Edo State, on the same day.

    Feelers from the organised private sector indicate that different professional groups are already prepping their members for the visit, just as market women are gearing up for a presidential welcome.

    A cross-section of members of the Manufacturers Association of Nigeria (MAN), Edo/Delta chapter, the Benin Chamber of Commerce, Industry, Mines and Agriculture (BENCCIMA), and other bodies said that they are ready to welcome the president to the state, and will be on ground to intimate the president with the impact of the current administration’s reforms on their businesses.

    Read Also: Buhari pledges more infrastructure for Southeast

    A member of BENCCIMA, and Youth Leader, All Progressives Congress (APC) Edo State Chapter, Comrade Asuen Valentine, said that a great deal of mobilization is ongoing across the state to see that the president gets a rousing welcome.

    Valentine, who is also Chief Executive Officer (CEO)/ Chairman, DVD Oil,  added, “We are ready to welcome the president to the state. This, for us, is an opportunity to engage with the President, tell him our concerns and also appreciate him for a number of policies that have positively impacted our operations, especially the move to diversify the economy.”

    Edo Market women leader, Madam Blacky Omoregie, on her part, said that market women are most excited to have the President in the state as his social investment programmes particularly the TraderMoni and MarketMoni have tremendously changed lives across the country.

    “This is the first time market women across the country are having such direct benefit from the government and it is so pleasing. This is why we are mobilising market women across the state to thank the President for all he has been doing and for placing us at the center of such interventions,” she added.

  • Group drags TETfund Boss, Baffa to EFCC

    A Civil Society Organization, Centre for Public Accountability (CPA), has dragged the Executive Secretary of the Tertiary Education Trust Fund (TETfund) Dr. Abdullahi Baffa, to the Economic and Financial Crimes Commission EFCC, over allegations of abuse of office and cases of contract deemed improperly awarded by the TETfund Chief Executive.

    The group led by its Executive Director, Comrade Olufemi Lawson, in a petition submitted today at the Lagos Office of the EFCC, said “It is with a deep sense of responsibility, that the Centre for Public Accountability (CPA), find it compelling to lodge a formal complaint, for investigative activities, of the Abuse of Office and arbitrary award of Contract, against laid down principles and law, by the Executive Secretary of the Tertiary Education Trust Fund, Dr. Abdullahi Baffa, since assumption of Office, till date.”

    The group accused Dr. Baffa of violating several provisions of the laws, guiding the operation of TETFund, among which stipulated, that TETFund shall ensure that funds generated from education tax are utilized to improve the quality of education in Nigeria WITHOUT DIRECT CONTRACT AWARDING.

    CPA also accused the TETfund Boss, of issuing instruction to public owned universities to reserve 20% of all contracts on the intervention fund provided to them by TETFund for “stakeholders”.

    “We strongly believe that these “Stakeholders” are none other than Dr. Abdullahi Baffa himself, his cronies and immediate family, many of who he has used as fronts, in executing the numerous illegal contract being awarded to several Higher institutions in clear violation of laid down procedures.” the petition further stated.

    “We are worried, that rather than focusing on the primary objective of the establishment of the fund, Dr. Baffa has converted the agency to a market of political patronage and contract bazzar, to the extent that many intervention projects are no longer advertised as stipulated by law. Indeed, what Dr. Abdullahi Baffa has been engaging in, contrary to the spirit and letter of the anti-corruption war of the President Muhammadu Buhari’s administration. It is disheartening that Dr. Baffa is working in opposite direction to the cardinal policy thrust of Mr. President by promoting abuse of Office and corruption, in such a sensitive organization.”

    The group called for the thorough and credible investigation of the allegation by the anti-graft body without minding whose ox was gored.
    The petition, which was received in the Lagos office of the anti-graft agency on Tuesday, was also forwarded to President Muhammadu Buhari, Honorable Minister of Education, Honorable Minister of Justice and Attorney General of the Federation, Chairman, Senate Committee on Tertiary Institutions, His House of Representatives counterpart, Manufacturers Association of Nigeria (MAN), Bankers Committee of Nigeria and the Federal Inland Revenue Services FIRS.

  • Ignore pressure to sign-on to AfCFTA agreement, MAN urges FG

    The Manufacturers Association of Nigeria ( MAN ) has urged the Federal Government to ignore pressure from certain quarters in the industry to urgently sign-on to the African Continental Free Trade Agreement ( AfCFTA ).

    Dr Frank Jacobs, President of MAN, made the appeal at a news conference on Wednesday in Lagos, tagged: “Matters arising on the AfCFTA”.

    AfCFTA is a trade agreement between African Union (AU) member states, with the goal of creating a single market to ensure free movement and a single currency union.

    The AfCFTA was signed in Rwanda on March 21, 2018.

    Signing the act does not yet establish the agreement but once all documents are concluded and ratified by members, the free trade among AU member states will formally exist.

    Jacob urged the government to continue to withhold its sign-on to the agreement until a credible outcome from an ongoing study initiated by the government on the matter was received.

    He said that Nigeria could become the key driver of improved volume of intra-African trade if the rules of origin, countervailing measures, dispute settlement, amongst other, were addressed.

    He, however, reiterated that the only way to guarantee this positive proposition was to ensure that the negotiating team was guided by a credible and strategic study.

    Read Also: AfCFTA must be free and fair, Buhari insists

    “In the light of recent developments, we considered it necessary to intimate you (Federal Government) that an insignificant number of non-real sector operators in the private sector are tactfully recommending that Mr President signs the agreement.

    “We (MAN) say they are essentially not at home with the technicalities of a trade agreement of this magnitude.

    “The pronouncement of this group of actors is not representative of the views of the Organised Private Sector of Nigeria.

    “We need to be certain that the agreement is in sync and not constraining our extant economic policies, including the Nigeria Industrial Revolution Plan (NIRP) and the Economic Recovery and Growth Plan (ERGP),” he said.

    The MAN chief reiterated that concerns on the implications of signing the agreement, which had been raised since March, had till this moment not been addressed.

    “We are concerned about the impact of AfCFTA on the nation’s tax structure, government revenue, the welfare of over 180 million Nigerians and its impact on the industrialisation and economic development aspirations of Nigeria.

    “For the avoidance of doubt, we again request that Mr President should not sign the AfCFTA agreement until the outcome of a credible study so indicates.

    “He should but graciously allow the nation’s team to resume participation in the negotiation processes only to ensure that the country is abreast of developments.

    “This will certainly not jeopardise or constrain the reservation of our assent, should we eventually decide that the agreement is definitely not in our favour.

    “It will only mean that, whilst keeping our eyes on the goings-on, we can continue with our much needed and sovereign path to determine whether we should sign-on or not,” he said.

    He lauded the clear demonstration of the commitment of Buhari and his government to the growth of the manufacturing sector; its preservation and the improvement of the wellbeing of the citizenry and the economy.

  • AfCFTA: MAN urges FG to be cautious in making binding commitments

    The Manufacturers Association of Nigeria (MAN) Wednesday called on the Federal Government to be cautious in making binding commitments on the African Continental Free Trade Area (AfCFTA).

    MAN President, Dr. Frank Jacobs who stated this in a media parley said it is pertinent to mention that MAN is not oblivious of the benefits inherent in installing a continental trade agreement like AfCFTA; as a continental free trade area could improve intra-African trade and enhance economic growth and sustainable development.

    “However, we hasten to add that Nigeria’s national interest should be the primary consideration in the decision to sign-on to such an arrangement” he said.

    According to him, the absence of substantive consultation with stakeholders depicts a blatant and fundamental departure from the practice in the past regarding trade negotiations, and most importantly, the requirements by the AU that the private sector in the various states be actively involved in the negotiation process.

    He said Government should, as matter of urgency, convene a special meeting of the relevant stakeholders, including experts on trade policy to set in motion a process that will enable all stakeholders on the international trade value chain in Nigeria to quickly review the text of the draft AfCFTA agreement and come up with comments on areas that are not in the best interest of the Nigerian economy and sectors;

    Consider tariff lines rates along the line of efficiency, sectoral and sub-sectoral preferences that would be most beneficial to Nigerian businesses under the AfCFTA dispensation.

    “Reconsider the National position on EPA vis-a-vis the AfCFTA especially on tariff lines of products on the sensitive/exclusion list, with a view to ensuring that the EU-EPA is not reintroduced through the AfCFTA’s back door; Review all the positions of Nigeria presented by NOTN to the AU-TWG-CFTA so far, especially the position on the framework agreement establishing the AfCFTA, protocols on trade in goods and services as well as justifications for the proposed progressive tariff rationalization;

    Mandate NOTN to establish sub-committees of NC-CFTA to review the thematic areas of AfCFTA, to fast track the turning-in of a distinctive position, facilitate the building up of consensus on AfCFTA and other related matters before going for negotiation”

    “Obtain and consider ECOWAS position on AfCFTA and mandate NOTN to share the memo on AfCFTA negotiations sent to the Presidency with strategic stakeholders; Review presentations and prepare a detailed submission for the Government on ways and means of participating in the AfCFTA in a manner that our national interest and that of the budding manufacturing sector are effectively protected” he said.

    He noted that this decision and the follow-up actions will, no doubt, strengthen the effective and unfettered implementation of the various policy initiatives in support of the industrialisation agenda of this administration.

    “With adequate involvement of the relevant economic Ministries, the recommendations earlier mentioned could be harnessed to provide a clear and all-inclusive basis for engaging the African continent in the envisaged trade agreement,” he stated.

     

  • ‘Virile production process will boost SME’s output’

    The Manufacturers Association of Nigeria (MAN), have said the Nigerian Manufacturing Equipment (NME)  Expo and manufacturing Partnership for African Development (mPAD)  provides a veritable platform for SMEs to learn new production processes in order to boost their production output, reduce costs, improve product quality and diversify into new product lines.

    Disclosing this at the 2018 edition of the NME Expo and mPAD holding at Landmark Centre, Lekki,  tagged “Enhancing Nigeria’s Manufacturing Competitiveness in the Global Space’’, the president of MAN, Dr. Frank Jacobs said the infusion of the NIRAM Expo into the NME Expo is to afford several companies and countries who have registered as exhibitors as well as visitors to the expo an opportunity of exposure to the entire manufacturing value chain, which include machinery, equipment, raw materials, financial support and professional consultancy.

    “The primary objective of NIRAM Expo is to create a platform where stakeholders in the raw materials value chain come together to synergize, showcase and trade-in available resources and raw materials with the users of same, which is mainly the manufacturing sector. This way, we intend to bridge the information gaps as well as encourage increased sourcing/procurement of locally available raw materials by manufacturing industries.  To this end, we can proudly say that the incorporation of the NIRAM Expo is the most exciting thing that has happened to the Industrial sector in Nigeria” he said.

    He said in order not to reverse the gains made in the manufacturing sector over these years, Nigeria should not succumb to the pressure by the European Union for Nigeria to sign the EU-ECOWAS Economic Partnership Agreement (EPA) in the current form.

    “Also, the signing of the African Continental Free Trade Area (AfCFTA) should be done cautiously as it may have the unintended consequence of opening up our economy to foreign products, through the back door and exposing our relatively disadvantaged productive sectors to unmanageable pressure. There is the need for proper and adequate consultations with critical stakeholders to mitigate this imminent onslaught ahead the of the implementation phase” he stated.

    The event manager, Clarion Event West Africa, Mr. Joseph Oru, said their goal with the annual NME expo collocated with the Nigeria raw material expo is to build a sustainable international platform for organisations to secure bulk orders from buyers. “Manufacturing activities plays a significant impact on the economy of any nation, and the objective of this expo is to support manufacturing industry through new technologies, financing and networking. The concentration of visitors from targeted sector ensures that everyone you meet at the exhibition will be a useful connection for business,” he said.

  • ‘Lagos Land Use Charge Law failed basiç legislative procedure ‘

    ‘Lagos Land Use Charge Law failed basiç legislative procedure ‘

    Nigeria’s Organised Private Sector (OPS) on Friday said the controversial Land Use Charge Law failed to meet basic legislative procedure before it was ratified by the Lagos House of Assembly.

    In its submission at a stakeholders forum on the new law organised by Lagos Chamber of Commerce and Industry (LCCI), the OPS said Lagos lawmakers ignored public outcry against it.

    Mr Timothy Olawale, OPS representative, said that the OPS was given less than five minutes to express their concerns during the public hearing on the review of the law.

    “The heaŕing was like a premeditated arrangement; the lawmakers failed to take into account public outcry against the review given the effect it would have on property owners, going by depreciation and devaluation of naira.

    “We wrote a letter as a follow up to the public hearing stating our position, still it was ignored,” he said.

    The OPS said that the citizens should not be held liable for government’s negligence to review the law every five years as stated in the provision of the law.

    “Government is toying with people’s lives and survival of businesses. Things are pretty hard, and perhaps because you are on the other side, you do not know.

    “Businesses are barely surviving. The income of Nigerians in the past five years, salaries and rental income alike, has been bastardised by inflation rate.

    “We learnt that since the law was passed, many property owners had developed hypertension because the assessed value of property has also been reviewed upwardly by over 500 per cent,” he said.

    The OPS said that government’s failure to review the law in the past 15 years notwithstanding, any increase above 100 per cent was unacceptable.

    The News Agency of Nigeria (NAN) reports that OPS comprises of Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).

    Others are; National Association of Small and Medium Scale Enterprises (NASME) and National Association of Small Scale Industries (NASSI).

    NAN reports that Lagos State Government recently repealed its 2001 Land Use Charge Law, and replaced it with a new Land Use Charge Law, 2018.

    The State House of Assembly had passed the bill on Jan. 29, while the Governor signed it into law on Feb. 8.

    Also commenting, Dr Dotun Bamigbola, Vice President, Nigerian Institution of Estate Surveyors and Valuers, recommended upward review of Relief Rate to accommodate provision for maintenance cost and other outgoing.

    He noted that most owners could only pay from property income, and proposed that charge rate should take cognisance of rental trend which in most locations was stagnant or going southward.

    Earlier, Mr Akinyemi Ashade, Lagos State Commissioner for Finance, said that the law would entrench a regime of self-assessment that allows property owners to make their own calculation and know their rate with the help of professional valuers.

    Ashade said that various reliefs had been made available to payers, including a general 40 percent relief for all property liable to LUC payment.

    NAN reports that the stakeholders erupted in uproar of displeasure several times during the commissioner’s presentation while some stormed out of the conference hall.

    The LCCI spokesperson, Segun Alabi, on several occasion entreated the stakeholders to maintain decorum while the forum lasted.

    Read Also: Land Use Charge: Lagos govt faults ‘outrageous amount in circulation’

  • FG, MAN, discuss measures to distribute 2,000MW unused electricity

    FG, MAN, discuss measures to distribute 2,000MW unused electricity

    Determined to distribute unused 2,000MW of electricity, the Federal Government on Tuesday met with the Manufacturers Association of Nigeria ( MAN ) to discuss workable ways to distribute the unused power.

    The Minister of Power, Works and Housing, Mr Babatunde Fashola, made this known to newsmen during the meeting with MAN in Abuja.

    He said that both parties would work out possibility of increasing not only access to power for business but also to improve the quantity and quality of power supply to the manufacturing sector.

    He said the story of Nigeria’s manufacturing and production sector had been characterised by lack of infrastructure such as  electricity.

    The minister said the forum was to evolve measures on how to distribute the 2,000MW unused power in the National Grid.

    “Our meeting is important because we gather not to talk about the problem, we gather to solve the problem.

    “As I said at a different forum, we have a new problem; we have more power than we can distribute.

    “In that context, we cannot continue to talk of lack of power; instead, we must talk about how to connect to the available and unsold power, and what it will cost to do so,’’ he said.

    According to Fashola, Nigeria’s power generating companies are now able to produce 7,000 MW, while Transmission Company is able to transport all of the power generated.

    He said the Distribution Companies ( DISCOS ) had also increased their load taking capacity to 5,0000MW.

    He said however that “this leaves a gap of 2,000MW of what you manufacturers will call unsold inventory.”

    The minister said the unused power offered the manufacturers a critical raw material to reduce cost of their production.

    “What we gather to do today is to open the window for sales to the Eligible Customer – willing buyer and willing seller.

    “There can be no better time to explore this option than when there is the supply of unsold power with the clear promise of more to come.

    “The market must open to all willing buyers,” Fashola said.

    Fashola said access to the 2,000MW for manufacturing and production would be the big bridge toward diversification of the economy.

    He urged participants to be open, frank and most importantly be flexible in the negotiations.

    The President of MAN, Dr Frank Jacobs said it was a great opportunity for MAN to key into the process of utilising the 2,000MW.

    He said MAN was in need of electricity, adding that its members daily consumption was 14, 882MW of electricity, mostly self generated.

    Jacobs said the eligible customer initiative would make it possible for members of MAN to get some of the unused power and convert it for their own use.

    “We think that the 2,000MW will help to augment though it will not give us all that we need, but it will help us,’’ Jacobs said.

    He expressed hope that the DISCOS would understand that the taking of the 2,000MW by the manufacturing sector was for the benefit of the country.

    “The opposition, we expect may be from the DISCOS, but we are hoping that they will understand that what we are doing is for the interest of the country and the economy of Nigeria,’’ he said.

    NAN