The Nation Newspaper

Tag: manufacturers

  • Manufacturers seek review of CBN’s monetary policy

    The Manufacturers Association of Nigeria (MAN) has urged the government to review fiscal policies to revive moribund industries and stimulate real sector growth.

    Speaking with The Nation, Chairman, Apapa branch of MAN, Mr John Aluya, blamed the slow growth of the real sector on the failure of the monetary policy framework to address realities in the sector.

    He raised concerns about the continued retention of the tight Monetary Policy by the Central Bank of Nigeria (CBN) and the high interest rates, describing them as burdensome and making the nation’s products lack competitive advantage.

    According to him, the real sector, which drives the economy, has become handicapped due to unfriendly monetary policies of the government.

    He said: “The truth remains that no country in the world has ever developed with an interest rate as high as 25 per cent as this has made it almost impossible for investors to access the funds needed for investments. The insecurity in the country, especially in the northern states has led to a high inventory of unsold goods and massive loss of jobs.

    “Inconsistent government policies, dearth of basic infrastructure, multiple visitation by regulatory agencies cum multiple taxation from Ministries, Departments and Agencies (MDAs), high lending rate of double digit, and unfavourable monetary policies have made cost of doing business in Nigeria as one of the highest in the world. The need to salvage our economy is now even more resounding than ever more.”

    The Chairman of MAN, Ikeja branch, Isaac Agoye, during its consultative forum in Lagos, said surplus cash in the system is responsible for CBN’s Monetary Policy Rate (MPR ) of 12 per cent and the prevailing high and burdensome anti-industry interest rate regime that makes Nigerian products uncompetitive.

    It has also led to the closure of several factories and contributed to the high level of unemployment in Nigeria.

    He said: “We recognise the dastardly blows dealt to the survival of manufacturers by smugglers. However, we note with concern that the band of smugglers, looters of the treasury and other commercial speculators fund their dollar requirement from the $2 billion or more CBN dollar allocations to Bureau De Changes every month.”

  • Omatek boss lists challenges of local manufacturers

    Omatek boss lists challenges of local manufacturers

    Group Managing Director of Omatek Venures Plc, Mrs Florence Seriki, has identified funding from financial institutions, home paronage and the government policy as the major contraints bedeviling indigenous original equipment manufacturers.

    She urged the government to get serious about job creation by addressing these issues..

    Seriki, who is also the President of Information Technology (Industry) Association of Nigeria (ITAN), said the Federal Government should rise up to the occasion and implement the local content policy in the information communication technology (ICT) sector. She spoke in Lagos yesterday.

    According to her, it is only when local patronage are sold across board that employment could be created and research and development (R&D) encouraged, adding that the communication technology minister should liaiase with other minstries and do private public partnership (PPP) and make ICT the major driver of the nation’s economy.

    She said it is only through this way that ICT sector can contribute significantly to the growth of the nation’s gross domestic product. “The minsiter should liaise with other minstries and do PPP. The government should make ICT the major driver of the economy. That is the way to go. India used software while Taiwan used hardware. Tolerance of local products is also important,” she said.

    Seriki who disclosed that the firm’s new factory in Lagos has seven bays out of which three are currently being used, said with the factory and conveyor belt in place, R&D would continue while the firm will not compromise on the qaulity of its products.

    On funding, she said the Bank of Industry (BoI) has promised to come to the aid of the ICT sector, adding that the managing director of the bank has already created a desk for ICT with the promise of making funding available. “Funding manufacturing is more difficult than funding finished products. That was why we brought the BoI. The MD has created a desk for ICT and promised to make loans available at single digit interest rate (to ICT industry),” she said.

    According to Seriki, appropriate policies are also vital to the survival of small and medium scale businesses (SMEs) in the country, aclling on the Federal Government to revisit the local content policy of former President Olusegun Obasanjo so that the growth and evolution of the ICT sector could be accelerated.

    Recaalling the decisions that the firm had taken to enable it function well, she said the firm had undertaken an overhaul of its psersonnel to make it function in the mould of world class technology firm, adding that though the decision was met with resistance, she said it was an advantage for the firm. She promised that when ongoing programmes put in inplace by the management are carried out, shareholders would be in for good times.

  • Govt to grant tax relief to manufacturers

    The Federal Government is considering granting tax relief to manufacturers, who are generating their own power for production and other uses.

    President of Manufacturers Association of Nigeria (MAN) Chief Kola Jamodu stated this after a meeting of the Economic Management Team (EMT) presided over by President Goodluck Jonathan at the State House.

    Jamodu, who addressed State House correspondents after the meeting, which lasted for about eight hours, said the decision was sequel to a presentation made by MAN to the Team.

    He said his Association acknowledged the improvement in power supply but underscored the need to encourage manufacturers “who have invested so much in power generation’’.

    “Truly, the power situation is improving and manufacturers are benefiting from it.

    “As for our members, who are still producing their own power, the Federal Government has agreed to give them tax relief to cushion the effects of the power situation, which is not perfect yet,” he said.

    Jamodu hailed Federal Government’s decision to engage his association in the effort to revive the country’s industries.

    He said the 15-page document submitted by MAN to government would go a long way in solving the problems industrialists were facing in the country.

    “A good number of our recommendations are being executed by the government and we are impressed with this. It gives us a lot of hope that the future is bright,” he said.

    The Minister of Trade and Investment, Dr Olusegun Aganga, said the meeting was about productivity, its barriers, what government needs to do and areas in which government is doing extremely well.”

    “It is an opportunity for us to hear from the industrialists what the issues are and for them to also understand what government is doing to address those issues,”

    Gov. Peter Obi of Anambra underscored the need for Nigerians to patronise Made-in-Nigeria products.

     

  • NAFDAC warns manufacturers, hawkers of fake drugs

    NAFDAC warns manufacturers, hawkers of fake drugs

    The National Agency for Food and Drug Administration and Control (NAFDAC) has warned manufacturers, importers and hawkers of counterfeit drugs, unwholesome sachet water and other products to stop such act.

    The agency’s coordinator in Oyo State, Mr. Benjamin Haruna, gave the warning at Agbeni market, Ibadan, during a sensitisation programme for traders.

    The programme was organised in collaboration with a National Youth Service Corps (NYSC) Community Development Service (CDS) group.

    NAFDAC spokesman in the Southwest Mr. Adegboyega Osiyemi, said fake drugs and unwholesome products endanger the lives of Nigerians and stifle economic growth.

    He said corps members had been trained to educate people across the 33 local government areas on the dangers of fake drugs and unwholesome products.

    Osiyemi said: “I advise those who patronise manufacturers and hawkers of unwholesome products to desist, because without patronage, there will be no business for them. That is why we are sensitising people in markets.

    The corps members urged the people to give their children foods that are fortified with Vitamin A to improve their sight.