Adedapo Adesanya
By Adedapo Adesanya
The President of the Manufacturers Association of Nigeria (MAN), Mr Francis Meshioye, has charged the government to make comprehensive and concerted efforts to overtake the binding constraints limiting local production.
Mr Meshioye made this disclosure while holding a press conference ahead of the forthcoming MAN 51st Annual General Meeting slated for October 17 to 19, 2023.
He said the country must focus on the role of the manufacturing sector in the actualisation of the African Continental Free Trade Agreement (AfCFTA) and the integration of the African economy as envisioned in the Agenda 2063: The Africa We Want manifesto.
Themed Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs To Do, he said the upcoming event would be a crucial point of reference, considering the growth trajectory of the manufacturing sector in Nigeria and Africa.
“Currently, the cost of manufacturing is daily rising owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy,” he said.
Mr Meshioye warned that the sector was faced with a series of challenges that constantly limited its contribution to the Gross Domestic Product (GDP) and this has put a strain on its ability to create jobs, ensure productivity, and propel economic growth as it always did.
“Such challenges as epileptic power supply, insecurity, inadequate infrastructure, shortage of foreign exchange and naira depreciation are prevailing issues that are impacting negatively on the sector.
“The government must seek to attract foreign investment that will bring about a reduction in the foreign exchange chase and ensure sufficient foreign exchange inflow that the country clearly requires.
“With a new administration steering the seat of governance, it is pertinent that all hands must be on deck to achieve a vibrant economy that can compete favourably.
“To start with, the government needs to prioritise investment in infrastructure and power, combat insecurity and corruption as well as introduce incentive policies that will make domestic production more attractive than the importation of finished products,” he said.
He also emphasised the need for the AfCFTA window to be maximised in such a way that products manufactured in Nigeria would be preferred in terms of quality and pricing.
He noted that until the country addressed the binding constraints that made local products uncompetitive, the benefit of a continental market might end up being a mirage for the largest economy in Africa.
“In the face of these shortcomings, we remain resilient and committed to our collaborative advocacy approach, as we strive towards the attainment of practical ease in doing business.
“We seek an atmosphere that supports favourable competition with our counterparts in other countries, particularly within the continent,” Mr Meshioye added.
