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Manufacturers in Nigeria decry poor electricity supply, high tariffs

Mr. Babatunde Fashola
Minister of Power, Works and Housing, Mr. Babatunde Fashola

Umbrella body of manufacturer in the country, the Manufacturers Association of Nigeria (MAN), has blamed the declining state of local industrial firms on inadequate power supply, high tariffs and business unfriendly tax regime.

National President of MAN Dr. Frank Udemba Jacobs who stated this in Benin City at the 29th yearly general meeting of the Edo/Delta chapter of the association in Benin City, Edo State, said the negative business environment poses its own peculiar challenge to the development of the manufacturing sector in the country.

The meeting had as its theme; “Constructive Engagement of Government towards facilitating Industrial Development in Edo and Delta States”.

“The privatization of the power sector and the emergence of DISCOs nationwide have not given us the anticipated improvement in power supply. We are still contending with inadequate and poor supply, high tariff, including fixed charges, arbitrary and startling increase in tariff rates as well as unwarranted disconnections,” said Jacobs, who was represented by Director, Field Services of MAN, Segun Kadire

While lamenting the huge burden of multiple taxation and other challenges confronting manufacturers in Edo and Delta States, he said the lack of basic infrastructure in the industrial estates and issues of multiple taxation have assumed a worrisome proportion.

He further noted that “manufacturing in Nigeria has become tougher given the challenges manufacturers are experiencing currently. We hope that the government of the two states would take bold steps to redress these challenges and pave way for the accelerated development of the manufacturing sector in the two states.”

Jacobs also faulted the Central Bank Of Nigeria’s policy on the use of foreign exchange, saying the apex bank’s directive contained in a circular on the use of foreign exchange has adversely affected the capacity of its members to source for foreign inputs.

“Manufacturers who export products and whose raw materials fall under the 41 items listed in the CBN circular are barred from using their export proceeds to fund the importation of their raw materials as they are classified as not valid for forex. Although we have objected to this superfluous restriction and expect a review of the policy in the near future, this action is indicative of the policy orientation of the Government and its aversion to the importation of otherwise locally available inputs/items. This means that the time for the increased sourcing of our raw materials locally has come,”, he stated.

Speaking earlier, Chairman, Edo and Delta states Branch of Manufacturers Association Of Nigeria (MAN), Humphrey Masodje said the dearth of local industries in the country has hampered the production of domestic goods with the immediate implication of layoffs and deeming prospects for further employment especially for the teeming active population.

Masodje however harped on the need for government to harmonize all taxes and levies by the various agencies of government with a view to eliminating multiple taxations and granting of incentives to manufacturers.

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