MAN Urges Govt to chart pathways for Accessibility, sustainability of fund for SMEs
The Manufacturers Association of Nigeria (MAN) has said that a vibrant Manufacturing Sector is essential for driving economic growth and prosperity and has urged the government to chart pathways for accessibility and sustainability of funds for the growth of Small and Medium Enterprises (SMEs).
The Association believes that despite the sector’s numerous challenges, including multiple taxation, limited access to credit, an unstable foreign exchange market, infrastructure deficits, and energy insecurity being faced by the sector, the government must take decisive action to address these challenges and unlock the potential of the manufacturing sector.
The Association in its position paper issued by the DG MAN, Segun Ajayi-Kadir explained that there is a need to create special windows for providing single-digit interest rates to productive sectors and relax stringent conditions for SMEs to access funding.
It recommended that the government should recapitalize the Bank of Industry (BOI) to meet the growing credit demand of industries, enhance credit information systems as well as broaden the scope of assets for collateral.
Government, the association said, should implement the recommendations of the Presidential Fiscal Policy and Tax Reforms Committee and reduce the excessive increase in Environmental Impact Assessment (EIA) and Effluent Discharge (EMP) fees imposed by NESREA.
According to MAN, the Government must also retain the current excise duty of N10 per liter on non-alcoholic beverages to avoid shutting down the industry.
“Direct the Central Bank of Nigeria to clear $2.4 billion outstanding dollar obligations on FX forward contracts to support manufacturers.
“Review import duty rates for production inputs, particularly those not locally available, and consider pegging the rate at N800,” MAN said.
The Association also urged the government to implement measures to streamline customs procedures, increased use of technology and decentralization of seaports as well as prioritize budgetary allocation for infrastructure development, especially along strategic economic hubs.
It also called for increased public-private partnerships for infrastructure development, including roads, railways, and port access roads.
Government, the association said, should direct the Nigerian Electricity Regulatory Commission (NERC) to review the excessive increase in electricity tariffs for Band A customers and prioritize domestic gas supply to manufacturers and enforce Naira-denominated pricing.
Accordingly, the government, the association said, should ensure transparency in electricity tariff charges, invest in infrastructure and efficiency improvements by Distribution Companies, and introduce outage compensation mechanisms.
