Manufacturers reeling under rising costs, multiple taxation
By Jeph Ajobaju, Chief Copy Editor
Inflationary pressures are pushing the real sector to the brink, with the Manufacturers Association of Nigeria (MAN) saying its members can hardly breathe any more, being choked by rising costs and multiple taxation.
The complaints are also echoed by the Lagos Chamber of Commerce and Industry (LCCI) which has called on the federal government to step up efforts to tackle increasing costs of staple foods nationwide.
The National Bureau of Statistics (NBS) announced last week headline inflation rate jumped to 24.08 per cent in July, the sixth consecutive monthly rise.
MAN Director General Segun Ajayi-Kadir said growing production costs are also coupled with reduced profit margin, supply chain disruptions, uncertainty in planning, and reduction of consumer spending.
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Demand for effective and conducive manufacturing operations
“Some of the ways that will ensure effective and conducive operations of manufacturers in the Nigerian economy include: Striving towards a stable exchange rate is crucial to controlling inflation; Employment of collaborative fiscal policy measure through budgeting and effective taxation to complement the monetary policy actions taken by CBN;” Ajayi-Kadir explained, per Vanguard.
“Increased targeted support to the agricultural sector to enhance productivity; reduce reliance on imports and stabilise food prices; Increased targeted support to the agricultural sector to enhance productivity, reduce reliance on imports and stabilize food prices.
“Formulation of policies that promote a stable and conducive business environment which can attract both local and foreign investments, leading to increased production, job creation, and ultimately, stability in prices;
“Communicate effectively with the public and stakeholders about the government’s commitment to controlling inflation which can help manage inflation expectations, which can influence price-setting behavior; addressing the challenges of insecurity’’.
LCCI Director General Chinyere Almona stressed “LCCI is concerned that there may be more inflationary pressures in the coming months due to the volatility of the naira as well as the lagged effects of subsidy removal and its transmission to general prices.
“The government should step up efforts to tackle food costs, especially staple food items. The chamber implores the government to hasten the provision of palliatives to lessen the impact of the rising trend in prices on economic agents.”