MAN urges FG to Establish Manufacturers Bank
The Manufacturers Association of Nigeria (MAN) President, Otunba Francis Meshioye has called on the Federal Government to establish Manufacturers Bank in Nigeria to boost the sector, among other things. The President made this call at an interactive and interview session during a press conference ahead of the 51st Annual General Meeting (AGM) held in Lagos with the theme: “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to do”, write Editor Gentechnews, Tony Nwakaegho.
Excerpts:
What type of engagement is the Manufacturers Association of Nigeria (MAN) having with Federal Government over the provision of N75 billion for 75 manufacturing enterprises to access N1 billion credit at 9% interest rate per annum between August 2023 and March 2024 to accelerate transformation in the manufacturing sector?
The Manufacturers Association of Nigeria (MAN) welcome the federal government gesture to set aside N75 billion over the next eight months to boost the manufacturing sector, among other plans to cushion the effects of the fuel subsidy removal on Nigerians. However, the N75billion will not go a long way to solve the challenges of the sector. Consider the fact that the dollar now goes for N1000 to a dollar and as such it will reduce the value of the money if you are to bring in equipment and raw materials to the sector. Strategic plans should be put in place to help the sector. Fund should be made available to the manufacturers at a low interest rate single digit, while the means to accessing the fund should be easy with the Commercial Banks. Most Commercial Banks are hesitant and reluctant to give good collateral as they don’t find it attractive to their business. MAN is in good position and willing to work with government to ensure that the fund get to the right people. However, since we have the Bank of Industry, (BOI) to service the industry sector, and Bank of Agriculture for the Agric sector, we are calling on the Federal Government to create the Manufacturers Bank for the manufacturing sector as well. The Manufacturers Bank will help in accurate dispensation of any amount of money allocated to the sector, whenever there is government intervention. All that is needed is to put in the framework to make it easy for manufacturers to get loans from the bank and ensure that the money is also returned to the bank. We believe that very soon there will be a turnaround in the economy.
The theme of the Manufacturers Association of Nigeria (MAN) AGM is: “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to do.” What is your expectation from Nigerian Manufacturers and stakeholders during this event?
Well, it is important that Manufacturers in Nigeria are well prepared to embrace the opportunity that the newly signed agreement with the African Continental Free Trade Area Agreement (AfCFTA) brings. It is time for us to know what we need to do naturally in order to be able to grow the sector. Most of the things that we need to do for instance is the patronage of locally produced goods. If Nigerians don’t patronize the goods that are produced here, then who will patronize it? It is so very important that Nigerians patronize goods that are Made-in-Nigeria and for government to set the pace, because if government set the pace as the spender, all others will follow. If they patronize the consumable, specialty, automobile goods, among others, it will drive the economy, while the quality will continue to improve because there will be an advantage for mass production, and it will become more competitive not only locally, even continentally and internationally.
It has been observed that packaging and high-cost hinder people from purchasing made in Nigeria goods. What is your take on this?
Bringing goods at a certain quality requires a lot of input. This thing we produce, repackage and what we put in the content are cost driven. The more the cost the more expensive it becomes. Take for instance some people will prefer they want a certain quantity in in a lower quality of an item, so how do you satisfy the need when there is no money. This may not be the same in some other countries. What it cost three dollars to do here is currently N3,000 but in other countries it is inconsequential to spend ten dollars. The cost of producing with three dollars is not significant. These factors should be looked at in a broader perspective and not a narrow perspective. It is too much for what you can bear as the quality of goods, the level of appearance become lower. Nigerians want manufacturers to produce quality goods and well packaged goods. Many are doing that. Another point is the fact that many too do not meet up with certain requirement does not portend that all others are not doing well, otherwise there will not be export because many people are still exporting. Some people outside the country are highly procuring and buying into it. If quality is out of it, they will not patronize it. So, we have products that are liked outside the country. It should be more competitive and more price friendly so that more patronage will begin from the exportation.
Industry stakeholders have opined that the closure of Nigeria’s boarder will have ripple effect on the African Continental Free Trade Area Agreement. What is MAN position on the closure of the boarder and AfCFTA?
It was the South West and Northern boarders that were closed. We are of the opinion that the government is looking at the whole thing globally. I don’t know what the new administration will do, but with collaboration with all relevant sectors, stakeholders and in terms of manufacturing much more could be done and much more could be achieved. I believe that government will look into the issue of the boarder, revisit it and proffer better opportunity so that we will be able to have inter-country trade. You know that one of the reasons for the closure of the boarder is insecurity, and apart from insecurity there is smuggling. Govermnent need to look at how to tackle the insecurity and smuggling around these areas so that eventually the asset to improve our trade will not be lost.
The AGM theme “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to do”is apt, but how will countries that are enmeshed in coup and military regime be accommodated in the implementation of the agreement now?
Apart from the countries where the coups occurred, many other countries don’t like coups, and nobody like military regime ordinarily. I believe that it is a temporary issue and cannot be sustained for a long time. The agreement will need to look into how to bring such emergency into its focus and framework. It will be a much more deeper thing to look into how to deal with countries where there is coup and how to incorporate such countries. To me, coup or military regime will not be a permanent issue in any country. Often times it is a temporary measure to correct certain things in such countries and bring out the reality and something that will bring their expectations into form.
What will the Manufacturers Association of Nigeria do to make the government’s Ministries, Departments and Agencies (MDAs) to patronize made in Nigeria goods?
There is the executive order 003 made by the past administration for all the MDAs to comply with respect to Made-in-Nigeria goods. That is why we are having the exhibition on Made-in-Nigeria goods during the MAN’s AGM in order to advocate for the patronage of Made-in-Nigeria goods. However, the implementation of the executive order is beyond us. We are not the one that will approve for the goods to be bought. What we need to do is to keep reminding the government about the need to patronize the Made-in-Nigeria goods by MDAs. If this is done, my life and your life will be better and we don’t need to spend much on forex and will be able to create jobs here and there.
Insecurity in the Northern state where goods, especially farm products are brought down south is on the rise. What is the way forward?
Government should make sure that we consume the goods we produce locally. By the time forex rise, price will go up, everything will go up and we will spend a lot of money to buy otherwise cheap things. We believe that the government will take interest in the issue of insecurity, because to transport your goods on the road you don’t know what will happen. What we need is a short team and long team solution.
