We’ll Improve Access To Forex For Importation Of Raw Material, Buhari Assures Manufacturers
President Muhammadu Buhari has assured manufacturers in the country that the federal government would take appropriate measures to improve access to foreign exchange (forex) for importation of raw materials and machines that are not readily available locally.
Buhari gave the assurance yesterday, in response to a request by the leadership of the Manufacturers Association of Nigeria (MAN), during an advocacy visit to State House, Abuja, appealed to the government to take steps to ensure that the real sector contributed more to the Nigerian economy.
According to a statement issued by Femi Adesina, presidential spokesperson, Buhari told the leadership of Manufacturers Association of Nigeria (MAN) that the relevant ministry would revisit their concerns about the increase in excise duties on the identified products and other tariff-related matters.
On the African Continental Free Trade Area (AfCFTA), the president said Nigeria would fast-track the process of setting up the Designated Competent Authority that would superintend the administration of Rules of Origin and Commission as well as the automation of issuance of electronic Certificate of Origin.
He said the federal government would also ensure that relevant platforms were established for monitoring and evaluation of the performance of the Ease of Doing Business and improve government patronage of made in Nigeria products.
Buhari told the MAN delegation, “Our strategic plan to boost manufacturing activities in the country is on course. We will continue to improve the patronage of locally made goods, bridge the gap between skills required by industry and those provided by our tertiary institutions, and ensure seamless access to long term finance for our Small and Medium-Scale Enterprises (SMEs).
“We recognise that MAN remains a key stakeholder in this journey and we will continue our engagement with you.”
Stressing his belief in a private sector-led economy as an elixir for job creation, Buhari urged the leadership of MAN to continue to encourage manufacturers in the country. He said the government recognised the resilience of their members and other private sector organisations in promoting a virile manufacturing sector in Nigeria.
“I beseech you to continue to support the government in our quest to provide the appropriate environment that will attract the necessary investment, both domestic and foreign, for the upliftment of the nation’s economy,” he added.
The president noted that while the COVID-19 pandemic had an adverse effect on the economy, with the attendant fluctuations in the prices of oil, his administration successfully contained the spread of the virus and other diseases.
According to him, the federal government would continue to consistently deploy prudent means of judiciously utilising its limited revenue to sustain the economy and stimulate growth.
Buhari emphasised that in spite of limited resources, his government had made appreciable progress in road and rail infrastructure development; provision of stimulus packages for the manufacturing sector; improvement in energy management; and support for exporters with a view to improving the operating environment for businesses in Nigeria.
He said, “These projects are there for all to see. Furthermore, we are vigorously pursuing reforms on ease of doing business and currently putting in place other necessary policy measures and incentives that will guarantee full recovery from the consequences of COVID-19, sustain economic development and further shield the economy from the potential impact of fluctuations in the price of crude oil in the global market.
“I have listened carefully to all the challenges enumerated by the president of MAN and would like to assure you that, like we have done in the recent past, we will give consideration to some of the constraints that are yet to be fully addressed, especially those that align with our policies and programmes for economic recovery and sustainable development.
“Let me assure you that this administration is fully aware that the survival of Nigeria lies in agriculture and having a viable domestic manufacturing sector. I must emphasise here that when I say agriculture, I also refer to agro-allied business, which is the value-added component in the value chain.”
According to the president, a strong manufacturing sector creates more jobs and wealth for the citizens.
“It will usher in sustainable economic prosperity because we will produce what we consume as a nation and generate foreign exchange by exporting surpluses and by import substitution,” he said.
Earlier in her remarks, Minister of State for Industry, Trade and Investment, Mariam Katagum, stressed that the ministry would continue to work with MAN in the areas of policy, trade and creation of an environment that would facilitate the growth of businesses in Nigeria.
“MAN is in business to create a climate of opinion in this country so that manufacturers can operate efficiently and profitably for the benefit of all,” she said.
MAN president, Mansur Ahmed, said the advocacy visit was basically to thank the president for all the support extended to the manufacturing sector since his assumption of office in 2015, and seek further support for the sector to overcome constraints to competitive manufacturing in the country.
Ahmed articulated remedies to the challenges of the sector, and spoke on the Blueprint for Accelerated Development of Manufacturing in Nigeria, which will be formally presented to Buhari in the first quarter of 2022.
The MAN leadership identified some challenges that could be addressed in the immediate term to improve the manufacturing environment. They include, according to him, inadequate supply of foreign exchange, inadequate electricity supply, poor access to long-term fund, poor patronage of Made-in-Nigeria goods and local content development, and looming increases in tax rates.
