Manufacturers

Calabar, Feb. 21, 2024: The Manufacturers Association of Nigeria (MAN), Akwa Ibom and Cross River chapter, has said that epileptic power supply in Cross River is impacting negatively on businesses in the state.

Acting Chairman of MAN, Mr Usen Umoh, stated this during a courtesy visit to the state Commissioner for Power and Renewable Energy, Mr Eka Williams, in Calabar on Wednesday.

Umoh said that the visit by the association had become necessary in order to chart a new course, owing to the hostile business environment and epileptic power supply in the state.

According to him, electricity is very critical in every business environment, adding that lack of it has the capacity to ruin any business endeavour.

”Following the poor power situation and the hostile business environment in the state, we have decided to pay the commissioner for power and renewable energy a visit to discuss the way forward.

“We need power to do business in Cross River. When there is power, businesses thrive and when businesses thrive, unemployment is reduced and the society is better economically,” he said.

The acting chairman also called on the state government to patronise locally-made products, stressing that it was the only way to grow businesses in the state.

In his response, Williams said that the state was ready and willing to go into partnership with MAN to boost businesses.

”Cross River is one of the frontline states in renewable energy. As such, we will like to partner with MAN.

”What we are doing is huge. We believe we have what it takes to produce solar panels in this state,” he said.

The commissioner urged members of the association to take advantage of the opportunities provided by state government to promote their businesses.

Lagos, Feb. 8, 2024: The Manufacturers Association of Nigeria (MAN) has expressed concern over the recent ban imposed on spirit drinks in sachets and PET bottles less than 200ml.

Director General, MAN, Mr Segun Ajayi-Kadir, made this known on Wednesday in Lagos, while reacting to the ban directed by the National Agency for Food and Drugs Administration and Control (NAFDAC).

According to the him, the ban is in line with an agreement reached by a tripartite committee set up in 2018 by the Federal Ministry of Health to stop production of alcohol in sachets and pet bottles of less than 200ml with effect Jan. 31, 2024.

The MAN Director General, however, stated that at the time when NAFDAC first proposed the ban, critical stakeholders including key members of Distillers and Blenders Association of Nigeria (DIBAN) raised concerns in a letter dated Nov. 6, 2018.

He said that contents of the letter include the following, “the assertion that the segmentation or packaging of alcoholic beverages in sachets and PET bottles is responsible for the reported increase of alcohol use among the underage is unfounded.

Rather DIBAN was of the view that it is a reflection of a systemic problem of much wider ramifications;

“That attributing the alleged increase in the use of hard drugs to the production and sales of alcoholic drinks in sachets and small PET bottles is incorrect; (no scientific or other studies have proven this claim)

“That packaging and sales of alcoholic beverages in sachets and PET bottles has not been shown to be the reason for irresponsible use in terms of quantity, intoxication and other menaces;

“That this ban will certainly lead to black market or bootlegging, influx and proliferation of fake and adulterated products;

“It will also damage local manufacturing and negatively affect the economy, as well as the social well-being of the people of Nigeria.”

He added that notwithstanding its earlier objections immediately to the ban, DIBAN participated in the preparation of a Memorandum of Understanding (MoU).

He said the MoU was then signed with evident reservations on Dec. 18, 2018 between the Federal Ministry of Health, NAFDAC, CPC (now FCCPC) and Association of Food, Beverages, and Tobacco Employers (AFBTE) and Distillers and Blenders Association of Nigeria (DIBAN).

“DIBAN immediately commenced extensive support for the Federal Ministry of Health and NAFDAC to undertake the advocacy, messaging, training, education, and other roles assigned to the Committee that was formed.

“During this period, DIBAN spent over one billion naira as at December 2023 on various campaigns to ensure zero consumption of alcoholic beverages by the under aged and in promoting responsible use of alcoholic beverages among adults.

“Our campaigns involved heavy use of radio, billboards, and social media to propagate the Ministry of Health’s carefully crafted messages, which were designed to cause a behavioural change in consumers.

“Working with NAFDAC, we targeted young people below the age of 18, who are not allowed by law to drink alcohol at all, and even the adults who are allowed to drink must drink responsibly.

“In 2021, the Ministerial Committee set up a Technical Sub-Committee to address gaps that were noticed in its work and to ensure effectiveness of the Committee which meets twice every year,” he said.

Ajayi-Kadir said the ministerial committee and technical sub committee developed a strategic plan to engender collaborative effort at all levels to ensure that underage drinking is eliminated in the country.

He added that the plan also was to ensure that adults who drank did so responsibly while protecting and growing local industries.

“The committee was expanded to include Federal Ministry of Finance Budget and National Planning, Federal Ministry of Information, National Orientation Agency,  Federal Ministry of Education, Standards Organisation of Nigeria (SON), Nigerian Customs Services.

“Others include Federal Inland Revenue Service (FIRS), Nigeria Police, Federal Road Safety Corps, National Identity Management Commission (NIMC), Association of Local Governments of Nigeria (ALGON) and Civil Society Organisations including Faith Based Organisations were also included for better representation.

“NAFDAC as part of getting the true position on the matter engaged an independent research Agency – Research Data Solution Limited. The Agency submitted its report to NAFDAC on August 20, 2021.

“The report recommended access control by the regulator rather than outright ban; given the fact that only 3.9 per cent of underage are engaged in binge drinking.

“This therefore confirms the fact that involvement of underage in alcoholic consumption is low and could, with additional efforts, be eradicated,” he said.

The MAN Director General said that there existed some challenges in implementing strategies to eliminate underage drinking in the country, which was the apparent preoccupation of NAFDAC to ban the production of drinks in sachets and PET bottles by 2024.

This, he said, was at variance with the right of private entrepreneurs to invest and engage in legitimate business.

Ajayi-Kadir said the proposed policy would amount to a deliberate destruction of the business of local and indigenous investors, who through thick and thin have kept faith with the Nigerian economy.

“They have continued to invest and reinvest at enormous cost in the economy and in the Nigerian people who are the bulk of its nearly five hundred thousand people workforce.

“This is in spite of the daunting challenges that businesses have faced in the difficult times, which if we must emphasise, has led to several companies closing down and foreign investors leaving the country.

“We are convinced that this present administration‘s Renewed Hope Agenda will not be best served with this ban. If the administration is committed to encouraging and strengthening local investors, then this ban should give way to access control.

“It must be explicitly stated: Moderation and responsible drinking promote good health. Small is good, if you buy small you will consume small. If you buy big you will consume big, this is not healthy.

“To go ahead with the policy based on perceived danger, without empirical information and not minding the consequences is unfair to the industry operators, the thousands of workers that will lose their jobs and inimical to Nigerian economy,” he said.

Ajayi-Kadir urged the government to intensify its activities and support, in the form of access control and tighter regulations, but definitely not ban, which would be counterproductive.

He appealed that the ban be reversed and replaced with regulations and access control such as establishment of licensed liquor stores or outlets by local government councils across the country; “Suspected underage persons (under 18) should be required to show identity to purchase alcoholic beverages as practiced in some other climes.

“Tighten enforcement by law enforcement agencies and d) Increased monitoring and compliance checks by NAFDAC, FCCPC and others to ensure strict product quality in terms of content and safety,” he said.

Lagos, Oct. 12, 2023:Mr Francis Meshioye, President of Manufacturers Association of Nigeria (MAN), has charged government to make comprehensive and concerted efforts to overtake the binding constraints limiting local production.

Meshioye gave this charge at the MAN 51st Annual General Meeting (AGM) news conference on Wednesday in Lagos.

The AGM scheduled for Oct. 17 to Oct. 19, 2023 has the theme: “Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs To Do.”

According to the MAN president, the event’s theme was couched with deep reflection over the growth trajectory of the manufacturing sector in Nigeria and Africa.

“Focus must be on the role of the manufacturing sector in the actualisation of the AfCFTA and the integration of the African economy as envisioned in the Agenda 2063: ‘The Africa We Want.’

“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.

Meshioye noted that more worrisome was the fact that the sector that should propel job creation, productivity, and economic growth was enmeshed in series of challenges that constantly limited its contribution to the Gross Domestic Product (GDP).

“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.

“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, 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.

The MAN president 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,” Meshioye said.

He said the association’s commitment to addressing the challenges from where the shoe really pinched informed the choice of guest speaker for the 3rd Adeola Odutola Annual Lecture.

“Our distinguished Guest Speaker is Nigeria’s former Minister of Finance and Chairman of the Economic Management Team from 2010 to 2011, Olusegun Aganga.

“Our goal is to brainstorm at the AGM, dwelling on the theme for the purpose of suggesting a policy direction for the new government.

“To give a typical rundown of this year’s event, the programme will as usual run for three days at the Lagos Oriental Hotel, Victoria Island, Lagos with an exhibition, AGM and lecture.

“For the manufacturing sector to become competitive, we must all not rest on our oars until we can boast of a sector that guarantees the sustainability of the economy and improvement in the standard of living of majority of the citizens,” he said.

Abuja, Oct. 4, 2023: Vice President Kashim Shettima says the Federal Government will support local manufacturers with N75 billion by March 2024 to strengthen the manufacturing sector.

Shettima said this while declaring open the second National Conference on non-oil export organised by the Nigerian Export Promotion Council (NEPC) on Wednesday in Abuja.

Represented by Dr Jumoke Oduwole, Special Adviser on Presidential Enabling Business Environment Council (PEBEC) and Investment, Shettima said that another N75 billion was earmarked to support 100,000 start-ups and Micro Small and Medium Enterprises (MSMEs) at single digital interest rates.

The two-day conference is with the theme, “Building a Sustainable National Economy Through Non-Oil Export”.

According to him, the Federal Government is also committed to providing necessary infrastructure that will support increased export of non-oil commodities.

“There can never be a better time to envision a conference of this nature than now; a time to reflect on non-oil export.

“Over the years, the nation’s major source had been 80 per cent dependent on oil revenue.

“It is clear that as a nation, we can’t afford to work on this uncharted path.

“Today, we find ourselves in protracted situation and challenges. All indications point to the fact that we have to prioritise our non-oil export.

“And this administration will give every support to boost non-oil export,” he said.

While pledging support towards made-in-Nigeria products, he assured of Federal Governments commitment to provide infrastructure that would facilitate export trade.

“We will prioritise capacity building for MSMEs, we will invest in human capital development.

“We need to work diligently to utilise opportunity provided by African Continental Free Trade Area (AfCFTA) by deepening our existing values and expanding our forex earnings,” he said.

Earlier, the Minister of Industry, Trade and Investment Dr Doris Uzoka-Anite expressed concern that Nigeria operated a mono-economy for long.

The minister however expressed joy that government’s diversification efforts were beginning to yield positive results.

“Nigerian non-oil exports grew by almost 40 per cent in 2022, reaching 4.820 billion dollars.

“Semi-processed and manufactured products accounted for almost 37 per cent of these exports, surpassing agriculture’s 30 per cent.

“This is a big step in the right direction. We no longer have the luxury of business as usual when it comes to the business of making sure Nigeria succeeds.

“We can no longer afford to export raw materials cheaply and import finished products at premium prices.

“That train has stopped and will not be starting again.

Our focus for exports is locally manufactured value added products that create both business and employment,” She said.

Dr Ezra Yakusak, the Chief Executive Officer of NEPC said that the Council has significantly increased contribution of the non-oil sector to the Nigerian economy.

According to him, for first time, the non-oil export performance grew by 39.91 per cent in 2022 to 4.820 billion with about 214 different products exported ranging from manufactured, semi-processed, solid minerals to raw agricultural products.

He said that Nigerian products were exported to 122 countries.

Yakusak appealed to the Federal Government to address the strange disease afflicting ginger farm in Kaduna state.

“I will not do justice to this address if I do not present the challenges being faced by farmers and exporters of ginger in Nigeria.

“It is a known fact that Nigeria’s ginger has been adjudged as the best in the world due its unique aroma, pungency and high oleorosin content.

“This makes Nigeria one of the largest exporters of ginger in the world.  However, the Council received several complaints of the outbreak of a strange disease ravaging ginger farms in Kaduna State.

“So far, about 2,503.9 hectares of farmland have been affected with an estimated loss of over eight billion Naira.

“Apart from the huge financial and economic loss, the disease is affecting the income and livelihood of ginger farmers who are mostly MSMEs.

“With the outbreak of the disease, Nigeria’s non-oil export performance may experience a steep decline, except the issue is adequately addressed.

“May I stress that this is not the time for us to accommodate any minute disruption in our foreign exchange inflow.

“With the current state of the Naira, every single source of foreign exchange must be carefully and jealously protected.

“It is in this direction that I call on the Federal Government to declare the ginger fungi infestation as a crop pandemic and fight it with the same viciousness our nation fought covid-19 pandemic,” the NEPC boss said.

Abuja, Oct. 4, 2023: President Kashim Shettima says the Federal Government will support local manufacturers with N75 billion by March 2024 to strengthen the manufacturing sector.

Shettima said this while declaring open the second National Conference on non-oil export organised by the Nigerian Export Promotion Council (NEPC) on Wednesday in Abuja.

Represented by Dr Jumoke Oduwole, Special Adviser on Presidential Enabling Business Environment Council (PEBEC) and Investment, Shettima said that another N75 billion was earmarked to support 100,000 start-ups and Micro Small and Medium Enterprises (MSMEs) at single digital interest rates.

The two-day conference is with the theme, “Building a Sustainable National Economy Through Non-Oil Export”.

ccording to him, the Federal Government is also committed to providing necessary infrastructure that will support increased export of non-oil commodities.

“There can never be a better time to envision a conference of this nature than now; a time to reflect on non-oil export.

“Over the years, the nation’s major source had been 80 per cent dependent on oil revenue.

“It is clear that as a nation, we can’t afford to work on this uncharted path.

“Today, we find ourselves in protracted situation and challenges. All indications point to the fact that we have to prioritise our non-oil export.

“And this administration will give every support to boost non-oil export,” he said.

While pledging support towards made-in-Nigeria products, he assured of Federal Governments commitment to provide infrastructure that would facilitate export trade.

“We will prioritise capacity building for MSMEs, we will invest in human capital development.

“We need to work diligently to utilise opportunity provided by African Continental Free Trade Area (AfCFTA) by deepening our existing values and expanding our forex earnings,” he said.

Earlier, the Minister of Industry, Trade and Investment Dr Doris Uzoka-Anite expressed concern that Nigeria operated a mono-economy for long.

The minister however expressed joy that government’s diversification efforts were beginning to yield positive results.

“Nigerian non-oil exports grew by almost 40 per cent in 2022, reaching 4.820 billion dollars.

“Semi-processed and manufactured products accounted for almost 37 per cent of these exports, surpassing agriculture’s 30 per cent.

“This is a big step in the right direction. We no longer have the luxury of business as usual when it comes to the business of making sure Nigeria succeeds.

“We can no longer afford to export raw materials cheaply and import finished products at premium prices.

“That train has stopped and will not be starting again.

Our focus for exports is locally manufactured value added products that create both business and employment,” She said.

Dr Ezra Yakusak, the Chief Executive Officer of NEPC said that the Council has significantly increased contribution of the non-oil sector to the Nigerian economy.

According to him, for first time, the non-oil export performance grew by 39.91 per cent in 2022 to 4.820 billion with about 214 different products exported ranging from manufactured, semi-processed, solid minerals to raw agricultural products.

He said that Nigerian products were exported to 122 countries.

Yakusak appealed to the Federal Government to address the strange disease afflicting ginger farm in Kaduna state.

“I will not do justice to this address if I do not present the challenges being faced by farmers and exporters of ginger in Nigeria.

“It is a known fact that Nigeria’s ginger has been adjudged as the best in the world due its unique aroma, pungency and high oleorosin content.

“This makes Nigeria one of the largest exporters of ginger in the world.  However, the Council received several complaints of the outbreak of a strange disease ravaging ginger farms in Kaduna State.

“So far, about 2,503.9 hectares of farmland have been affected with an estimated loss of over eight billion Naira.

“Apart from the huge financial and economic loss, the disease is affecting the income and livelihood of ginger farmers who are mostly MSMEs.

“With the outbreak of the disease, Nigeria’s non-oil export performance may experience a steep decline, except the issue is adequately addressed.

“May I stress that this is not the time for us to accommodate any minute disruption in our foreign exchange inflow.

“With the current state of the Naira, every single source of foreign exchange must be carefully and jealously protected.

“It is in this direction that I call on the Federal Government to declare the ginger fungi infestation as a crop pandemic and fight it with the same viciousness our nation fought covid-19 pandemic,” the NEPC boss said.

Lagos, Sept. 18, 2023: The Manufacturers Association of Nigeria (MAN) has outlined its expectations from the new governor of the Central Bank of Nigeria (CBN).

They called for a more responsive and engaging CBN under the new dispensation.

Mr Segun Ajayi-Kadir, Director General, MAN, said on Monday in Lagos following the appointment of Mr Olayemi Cardoso as the New CBN governor.

Cardoso was a former Chairman of Citibank Nigeria, and had served in the financial and other sectors with over 30 years of experience across several organisations.

Ajayi-Kadir said the manufacturer’s expectations from the new CBN governor were to promote long-term macroeconomic management, restoration of confidence, and engender economic growth in the short and medium terms.

“Without any doubt, the manufacturing sector in Nigeria is full of expectations from the new CBN Governor.

“It could be said that the period between the exit of former Governor Godwin Emefiele and the appointment of Governor Cardoso is a period of uncertainty and anxiety.

“This scenario was not helped by the mind-boggling revelations about the last management of the CBN one is seeing in the social media,” he said.

The MAN DG urged the CBN governor to address issues of current unimpressive foreign exchange reserves and high inflation rates.

He said there was the need to tackle the low possibility of raising market rates to more attractive levels; high debt profile and increasing debt servicing costs as well as public aversion to more borrowing.

According to him, better attempts should be made to ensure a strategic balance between tackling inflation and engendering economic growth through effective funding.

“So promoting long-term macroeconomic management under this scenario is a task the CBN Governor needs to tackle.

“We are naturally expectant that the change will create an atmosphere that is conducive for the promised reform in the financial sector of the economy.

“We expect that we shall have more transparency and effective management of the exchange rate; quite importantly, a regime of production, supportive interest rate, and robust initiatives to engender price stability.

“We are anxious to have a restoration of confidence in the system and the possibility of economic growth in the short to medium term,” he said.

Ajayi-Kadir also called for the syncing of fiscal and monetary policies, urging the new Governor to actively support this policy handshake.

He added that matters arising from the recent floating of the exchange rate needed expedited measures to bring about harmonisation.

He said this was because manufacturers required foreign exchange to import their raw materials, machines, and spare parts that were not locally available.

“One thing that is also important is for the CBN Governor to pay close attention to the dynamics of our economic environment, and engage critical stakeholders ahead of monetary policy incubation as well as evaluation and monitoring.

“We are confident that Governor Yemi Cardoso has his job well cut out for him and so we look forward to a better management of our monetary policy.

“We expect a more responsive and engaging CBN in this new dispensation,” he said.

Lagos, Sept. 8, 2023: Manufacturers have lauded the corrective economic reforms (exchange rate convergence and the removal of fuel subsidy) by the Federal Government.

But the manufacturers noted that the reforms came at a huge cost to the real sector.

Dr Muda Yusuf, founder, Centre for the Promotion of Private Enterprises (CPPE), said while these reforms were inevitably critical to fixing damaging distortions in the economy, the immediate outcomes were somewhat devastating.

Yusuf noted that intense inflationary pressures, spiking operating costs for manufacturers and severe negative impact on citizens welfare greeted the implementation of the policies.

According to him, they impacted sales and unsold inventories, eroded profit margins, negatively affecting the balance sheets of many cooperations.

These, he said, therefore underscored the imperative of an expeditious response from the administration to address the unintended adverse outcomes of the reforms for investors and the citizens.

He noted that while the commitment of the administration to fiscal and tax reforms was laudable, there seemed to be a disproportionate focus on revenue generation.

“This could hurt industrialists and impede economic growth.

“While it is imperative to ensure fiscal consolidation, it is important to deploy fiscal, tariff and tax policies to provide reliefs to manufacturers because of their elevated vulnerabilities.

“We need to see more fiscal and tax incentives to drive recovery of growth sectors of the economy and mitigate the pains of the current reforms.

“The government now has the fiscal space to support the businesses and the vulnerable segments of the society with this policy driven incentives,” he said.

Yusuf added that the state also had a huge role to play in facilitating the recovery and growth of the manufacturing sector.

He said that issues of multiple taxation, nuisance by non state actors, access to and cost of land were within the remit of the states.

“The intervention of the subnational governments in these areas is vital,” he said.

Mr Segun Ajayi-Kadir, Director-General, Manufacturers Association of Nigeria (MAN), urged government to ensure harmonisation of fiscal and monetary policies to drive stable macroeconomic environment.

This, he said, was critical to promote productivity in the manufacturing sector and improve the ease of doing business.

Ajayi-Kadir noted that the abrupt removal of fuel subsidy without appropriate palliatives was already affecting the confidence of some Nigerians in the new administration.

He said that while the introduction of the Forex Price Verification System Portal was laudable to improve transparency, foreign exchange intervention would not be effective without boosting liquidity levels in the official foreign exchange window.

The DG said more needed to be done to increase liquidity by intensifying efforts to encourage the inflow of foreign investments, promote export in productive industries and encourage local sourcing and local patronage.

“In the medium term, it is essential to tackle problems relating to low productivity and limited export diversification, excessive import-dependent production structure and dilapidated capital goods industry.

“This will require bridging the huge infrastructure gap, especially as it relates to customs, transport and power which are of utmost concern to the manufacturers.

“It would also require boosting public-private investment in renewable energy, backward integration and local sourcing of raw materials to create a highly competitive and self-sufficient manufacturing industry.

“Government must also provide appropriate palliatives to mitigate the adverse impact of fuel subsidy removal on the welfare of households and businesses,” he said.

Sango-Ota (Ogun), Aug. 14, 2023: Dr Wale Adegbite, ex-Chairman of Ogun Manufacturers Association of Nigeria (MAN), has appealed to the Federal Government to give more incentives manufacturers to boost exportation.

Adegbite made the appeal on Sunday in Ota, Ogun where he spoke against the backdrop of Nigeria’s currency approaching N1000 to a dollar at the Black Market.

He said this would allow manufacturers to improve productivity and reduce the cost of production.

The ex-MAN chairman noted that the demand for dollars outweighed the supply for naira because the country was an import dependent nation.

“The Federal Government needs to stimulate the manufacturing sector through such incentives like lower taxes, cheaper loans and formulating policies, stable power supply among others, which would help them to produce at optimal level for export.

“In addition, the country needs to export more goods to generate more forex which would reduce pressure on Nigeria’s currency.” he said.

Adegbite said that the manufacturing sector played a pivotal role both in Gross Domestic Product (GDP) and generation of employment opportunities in the country.