MAN cries out, Nigerian manufacturers facing high operational costs, hash business environment
By Jeph Ajobaju, Chief Copy Editor
Manufacturers are facing the toughest period in their history in Nigeria with rising operational costs, hostile business environment, piling unsold stock, and multiple taxation.
Odiri Erewa-Meggison, the Chairman of the Manufacturers Association of Nigeria Export Promotion Group (MAN-EPG) stressed the groan at the group’s annual general meeting (AGM).
The theme of the AGM was “Manufactured Products’ Competitiveness under the AfCFTA amidst increasing high cost of production in Nigeria.”
She told the gathering since the pandemic, exporters have struggled with reduced international demand coupled with domestic economic challenges such as high exchange rate, high cost of energy, multiple levies and taxes, port congestion, unending security, infrastructural challenges, among others.
“You will agree with me that the choice of the theme for our AGM comes at the appropriate time considering the fact that the manufacturing sector is experiencing the toughest period in the history of its existence as a result of the prevailing economic situation in Nigeria,” Erewa-Meggison said.
She urged the federal government to reconsider the 34 deserving exporters stepped down by the 9th National Assembly (NASS) from participating in the Promissory Notes Programmes.
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Need for greater resilience
MAN Director General Segun Ajayi-Kadir said the importance of cultivating an export-driven economy cannot be overemphasised, per reporting by The PUNCH.
He implored manufacturers to remain resilient while navigating the challenging business environment in order to leverage the opportunities provided by the African Continental Free Trade Agreement (AfCFTA).
He added: “Export is very important to us as a nation. A lot of people have said that what we need to do is to move away from our comparative advantage and focus on export-driven development. This is why MAN, for more than five decades, has concentrated on making Nigeria’s manufacturing competitive.
“So, the theme for this year is very special because we are looking at our competitiveness even in the midst of rising production costs.
“You will all agree with me that one of the most difficult things to do in Nigeria is to drive down your costs because inflation continues to head north, while profitability heads south. This is the reality that we face every day.”
Adeolu Adewuyi, a professor and Dean of the School of Business, University of Ibadan (UI), insisted a high and sustained living standard cannot be attained and sustained by any nation without considerable improvements in manufacturing.