Manufacturers List Challenges to Economic Growth

The Organised Private Sector (OPS) monday listed 12 factors retarding the growth of the nation’s economy, isolating the prevailing huge scarcity of foreign exchange as the major impediment to economic recovery.

They also called for a review of the list of 41 items banned by the Central Bank of Nigeria (CBN) from accessing forex in the interbank forex market with the aim of removing raw materials components that could not be sourced locally.

The OPS spoke in Abuja during the second meeting of the Presidential Business Forum in Abuja, where the Minister of Budget and National Planning, Senator Udo Udoma Udo, listed the strategies the government was deploying to drive economic recovery.

The Chairman of the Manufacturers Association of Nigeria (MAN), Mr. Frank Udemba-Jacobs, who spoke for the OPS enumerated the challenges the real sector was facing which he said had made it difficult to revive the economy.
The OPS comprises the Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA); Nigeria Employers’ Consultative Association (NECA); Nigerian Association of Small and Medium Scale Enterprises (NASME) and Nigerian Association of Small Scale Industries (NASSI); the President of Manufacturers Association of Nigeria (MAN).

He said there was inadequate foreign exchange in circulation and that the monitoring mechanism by the government was ineffective.

He listed about twelve challenges inhibiting business atmosphere in Nigeria.
They included access to foreign exchange; diversification of the economy and resource-based industrialisation; long term funding; EU/ECOWAS Economic Partnership Agreement; patronage of Made-in-Nigeria products and enforcement of the Procurement Act; and collapse of basic infrastructural facilities.

Others were challenges with policy environment; low investment in agriculture and agro-allied businesses; prohibitive gas pricing for industrial users and wrong classification as commercial users; multiple levies by government agencies on same sales promotion; and invasion of premises of members for the purpose of collecting taxes.

Udemba-Jacobs said: “Collectively, we are the voice of the Organized Businesses in the Private Sector on issues on the Nigerian Economy in particular and the nation in general.

“We commend Your Excellency for giving us the opportunity to make this presentation, which we believe, would significantly improve the economy, while strengthening the relationship between the Private Sector and the Government.”

He said OPS was aware of the current state of the economy and the effort the Federal Government was making to revive it.
He commended government for the effort at curbing the security challenges facing the country and the determination to rid the country of corruption.

Udemba-Jacobs said: “We particularly commend your administration for the diversification initiative, and most especially, for the resource based industrialization policy which Government has adopted. These policies are pivotal to the resuscitation of the economy. The OPS is fully in support of government’s efforts and would offer any assistance possible to get the country out of the current economic quagmire.”

He called on the government to, as a matter of urgency, address their major concerns saying that is the only way to achieve the objectives of government towards reviving the economy; revitalizing the industrial sector; growing MSMEs and creating employment for its citizenry.

The OPS chairman acknowledged government’s efforts at ensuring that the outstanding debts owed to local contractors were paid, but said non-payment of the debt, including interest had significantly limited the level of business activities in the economy, particularly in the manufacturing sector, which had both direct and indirect links to the contractors.

He urged government to give priority attention to defraying the legacy debts to enable the companies/creditors being owed to return to business and boost the economy.
Also speaking, the Minister of Budget and National Planning, Udoma, said various strategies had been mapped out to ensure the recovery of the economy in the Economic Recovery and Growth Plan, ERGP.

The strategies according to him included: “Restoration of production to 2.2mbpd and to peak at 5mbpd by 2020; Privatize selected assets; Accelerate non-oil revenue generation; Drastically cut costs; Align monetary, trade and fiscal policies; Expand Infrastructure especially power, roads and rail; Revamp the four existing refineries; Improve ease of doing business; Expand social investment programmes; Deliver on agricultural transformation; Accelerate implementation of National Industrial Revolution Plan using special economic zones and Focus on priority sectors in order to generate jobs, promote exports, boost growth and upgrade skills.”

The event was also attended by Minister of Trade and Industry, Mr. Okechukwu Enelamah, Minister of Finance, Mrs Kemi Adeosun, Minister of Power, Works and Housing, Mr. Babatunde Fashola, Minister of Information, Alhaji Lai Mohammed, and Minister of Transportation, Mr. Rotimi Amaechi, amongst other dignitaries who made different inputs on the recovery of the economy through effective partnership between the government and the private sector.