Manufacturers deserve priority attention in forex allocation, MAN tells Tinubu

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Manufacturers Association of Nigeria has called on President Bola Tinubu to prevail on the Central Bank of Nigeria to give priority to the allocations of foreign exchange to the productive sector especially its members.

This it said would enable manufacturers to import raw materials, spares, and machinery that are not locally available in the country.

This was contained in statement which was a reaction of the association to the President’s inaugural speech, and it was signed by the Director-General of MAN, Dr. Segun Ajayi-Kadir, a copy of which was made available to NOTM online.

“In addition to pursuing the unification of the exchange rate, the CBN should be prevailed upon to take effective action to give priority to the allocations of foreign exchange to the productive sector, particularly to manufacturers to import raw materials, spares, and machinery that are not locally available,” the statement indicated.

The association also appealed to President Tinubu to direct the Nigerian Electricity Regulatory Commission to admit all qualified applicant companies into the Eligible Customer Scheme in order to allow them access to power as stipulated in the Electric Power Sector Reform Act 2005.

It in addition, MAN wanted the FG to direct all relevant agencies of government to ensure that the electronic call-up system at ports aimed at redressing the congestion works without fail.

 

The association equally called for a revisit of the Finance Bill 2022 to ensure it includes the critical inputs of the organized private sector, in particular, the jettisoning of the highly objectionable removal of the 10% investment allowance on the acquisition of plants & machinery (in the Company Income Tax Act, section 32).

“Additionally, to ensure that the imposition of the 0.5% levy on eligible imports from third countries is limited to goods that we have the capacity to produce locally and quite importantly, exclude raw materials that are not locally available.

“The input of the Organised Private Sector on the CEMA bill should also be taken on board before the amendment bill is signed into law,” MAN added.

It appealed to the FG to anounce a special policy initiative to address the revival of closed and distressed industries, particularly in the northeast “where 60% of our member companies have closed.”

It suggested that the government should craft and announce a special policy initiative to leverage diaspora expertise and investment to address evident gaps and help to boost the performance of the economy.

“Government should also direct all ministries, departments, and agencies of government to unfailingly comply with Executive Order 003 on the patronage of made-in-Nigeria products.

“In this regard, there should be strict application of the margin of preference, effective monitoring and periodic evaluation of compliance, and appropriate sanctions meted out to MDAs acting in breach of the executive order.

“Government should announce a special policy initiative to derisk manufacturing and release adequate funding for the sector through effective funding of special lending windows.”

MAN commended the new administration for giving an assurance of better days ahead in the inaugural speech of the President, especially “saying that his industrial policy will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency.”

“This is a positive development. It is an unmistakable indication of a far-sighted strategic choice. One that is borne out of a deep reflection on the current inclement manufacturing environment and the need to stop the drift into inglorious de-industrialization of the Nigerian economy,”it further stated.

“We also expect that, in line with his promise to enable a supportive fiscal policy regime, Mr. President will order a reversal of the unwarranted violation of the government’s three-year excise escalation roadmap on alcoholic beverages and tobacco.”

 

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