Manufacturers urge government to tackle production constraints

The Manufacturers Association of Nigeria (MAN) has issued a compelling call to the government, urging the swift development of comprehensive policies to rectify persistent hindrances that are hampering local production in the country.

This appeal was made by Otunba Francis Meshioye, the President of MAN, during the association’s 51st Annual General Meeting (AGM) news conference held in Lagos.

The upcoming AGM, scheduled for October 17 to October 19, 2023, is themed “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to Do.” According to Meshioye, this theme was carefully selected, taking into account the growth trajectory of the manufacturing sector in Nigeria and Africa as a whole.

Meshioye highlighted the importance of focusing on the role of the manufacturing sector in achieving the objectives of the African Continental Free Trade Area (AfCFTA) and the integration of the African economy, in alignment with the vision outlined in Agenda 2063: “The Africa We Want.”

Currently, the cost of manufacturing is on a continuous rise, primarily due to the scarcity and unavailability of manufacturing inputs. This situation not only erodes profitability but also poses a substantial threat to the vitality of the critical manufacturing sector of the economy.

Meshioye expressed deep concern over the fact that the manufacturing sector, which should be a catalyst for job creation, increased productivity, and economic growth, is mired in a multitude of challenges that consistently hinder its contribution to the Gross Domestic Product (GDP).

These challenges encompass issues such as unreliable power supply, insecurity, inadequate infrastructure, foreign exchange shortages, and depreciation of the national currency. To address these challenges, Meshioye stressed the importance of the government attracting foreign investments that can reduce the pressure on foreign exchange and ensure a steady flow of foreign currency into the country.

In light of the new administration taking the helm of governance, it is imperative that concerted efforts be made to foster a thriving economy that can compete favorably in the global arena. The first step, as Meshioye outlined, should involve a strategic focus on investing in infrastructure and power, combating insecurity and corruption, and introducing incentive policies that make domestic production a more attractive option than importing finished goods.

Meshioye underscored the need to maximize the opportunities presented by the AfCFTA, ensuring that products manufactured in Nigeria are not only of high quality but also competitively priced. He emphasized that until Nigeria addresses the constraints that render local products uncompetitive, the potential benefits of a continental market may remain elusive for the largest economy in Africa.

“In the face of these shortcomings, we remain resilient and committed to our collaborative advocacy approach as we strive towards the attainment of practical ease in doing business. We seek an atmosphere that supports favorable competition with our counterparts in other countries, particularly within the continent,” Meshioye declared.

In conclusion, Meshioye urged all stakeholders to work diligently towards creating a competitive manufacturing sector that can ensure the sustainability of the economy and improve the standard of living for the majority of citizens. The appeal from MAN underscores the pressing need for comprehensive policies that address the challenges currently undermining local production, thereby fostering a more robust and vibrant manufacturing sector in Nigeria.