Manufacturers Association of Nigeria, MAN, has recently admonished President Muhammadu Buhari to exercise caution in his formulation of economic policy for Nigeria in order for him to have a sustainable economic development.
The association revealed this in a document released by its President, Frank Jacobs. According to him, the association had been partnering with the Central Bank of Nigeria to discover items that should be removed from forex allocation due to their local availability. Such partnership would showcase the exact items that need to be removed from the market.
The association also requested that government should implement Import Adjustment Tax of 20 per cent on Pharmaceutical Products that are imported to the country with HS Code 3003 and 3004 as Nigerian producers possess the capacity to manufacture them.
Jacobs said: “The import prohibition list prescribed in the CET should be retained because there is available local capacity in Nigeria. There is need for the government to create an exchange rate window that is less volatile than the current inter-bank from which manufacturers can source for forex until the economy is diversified to a level where it can provide the needed industrial raw-materials.”
While speaking further, he said, “The government should fast-track the establishment of its Development Bank of Nigeria which was inaugurated earlier and the bank should give priority to the needs of the manufacturing sector. The CBN 220bn Micro, Small and Medium Enterprises Development Fund and the N300bn Real Sector Support Facility are welcome developments, but CBN should make the funds easily accessible to manufacturers by simplifying the current application procedures”.
“The government should also encourage the CBN to speed up the establishment of the Movable Asset Collateral Registry to enable SMEs access credit from conventional banks as well as from the various support funds provided by CBN. The issue of disputed estimated bills by the electricity distribution companies which is now a subject of litigation by MAN should be quickly resolved by the Nigerian Electricity Regulatory Commission as this is negatively impacting on the economy. There is need also for the distribution companies to improve on the current metering coverage.”