MAN Lauds FG’s Move to Enhance Domestic Production of Goods, Services

Hammed Shittu in Ilorin

The National President, Manufacturers Association of Nigeria (MAN), Engr. Mansur Ahmed, yesterday commended efforts by the federal government to enhance production of goods and services in the country.

He also pointed that recent directive by the Central Bank of Nigeria (CBN) to end the supply of foreign exchange (forex) to Bureau De Change (BDCs) would see the regulator channel more forex to the productive sector.

Speaking in Ilorin, Kwara State, during the 7th Annual General Meeting of MAN, Ahmed noted that: “It is intended to allow those that are producing goods and services to bring in the necessary materials and equipment required to produce those goods and services at affordable prices. That is highly commendable and would assist the locally producing manufacturers to increase their productivity.”

According to him, “The decision by the CBN to withdraw supply of forex to BDCs is one that the manufacturing sector is fully in support of. The art of getting forex in the market to me does not make sense.
“We do not see how that will help the economy. Certainly, if the forex is made available to our manufacturing companies, more young people will be employed and the companies will operate at higher capacity and more industries will be created while lots of the raw materials needed to make run will be readily available.
“So, if you have to sell forex to traders in the market as if it is a commodity, you are denying the manufacturing sector these vital resources.”

Speaking further, Ahmed said: “According to CBN report, the numbers of BDCs exploded from 2005 to 2011, from 74 from over 6,000. Assuming you are giving $20,000 to BDCs weekly, this will amount to over $600 million of forex weekly going into the market instead of going into industries to produce goods and services and create employment. Clearly, that action of the CBN on forex is most welcome and we commend the federal government on that.”
He also called for the public interest in the development of manufacturing industries through provision of necessary facilities such as loans, roads, electricity, security, among others, so as to enhance the growth of businesses in the country.

Ahmed who lauded the giant stride of the Kwara branch of association advised them not to relent in their bid to enhance the growth of businesses in the state.
Also speaking, the Kwara /Kogi State branch of MAN, Alhaji Bioku Rahmon, expressed concern over the fast-rising debt profile of the country, saying the development has weakened the government capacity to build the infrastructure required by local industries.

He also said the rising level of insecurity in the country has continued to diminish both foreign- direct and foreign- portfolio investment into the country.

Rahmon also listed some challenges to economic growth in the country to include reluctance of the government to check the alleged gross violation and operational excesses of the electricity distribution companies, multiple taxation, especially from the state and local governments, shrinking access to loan opportunities as well as the very high interest rates in the country.
He, therefore said the association would continue to work with various agencies of the government to accelerate economic development.