Nigerian Manufacturers Request Special Incentives from FG

The Manufacturing Association of Nigeria (MAN) has asked the federal government for waiver on import duties to help the cushion the hard hitting impact of the coronavirus on businesses among other measures.

The association also solicited unguarded access to industrial essential materials such as fuel, gas, electricity and other infrastructure that will aid the manufacturing sector in the country as the COVID-19 pandemic continues.

In a statement by its president, Mr Mansur Ahmed, the group equally urged government to ensure that other essential commodities such as pharmaceuticals and consumables are available for Nigerians.

Mr Ahmed stated that should a total lock down become necessary in Nigeria, the introduction of such fiscal measures would become imperative.

“In the case of an eventual lockdown, the government should consider the introduction of fiscal measures such as waivers on import duties on active pharmaceutical ingredients and other essential products,” he said.

The body also appealed to the Central Bank of Nigeria (CBN) to extend the supply of foreign currency to the manufacturing sector at the present rates, demanding for the reduction of personal income tax to increase the disposable income of an average Nigerian worker.

Backing this up, the statement stated that data by the CBN showed a 34-month low slump in activity level with both manufacturing and non-manufacturing Purchasing Managers Index (PMI) for the month of March, dropping 51.1 and 49.2 points from their respective levels of 58.3 and 58.6 points in the previous month.

“We believe the sharp decline witnessed in the sectors is due to the disruption of economic activities brought about by the outbreak of COVID-19 “

“The virus has affected global supply chains as countries across the globe have implemented a total lockdown. This has resulted in the shut down of factories as manufacturers can no longer import raw materials required for production even as demand from customers remains constrained by the stay at home policy amidst loss of jobs,“ it said.