Yemisi Izuora
The Commerce and Industry Correspondents Association of Nigeria (CICAN), has drawn the attention of the Minister of Industry, Commerce and Investment to the predicament of the manufacturing sector.
The CICAN noted that the country’s real sector is grappling with so many challenges which urgently require the quick attention of the Minister to meet the aspirations of President Bola Ahmed Tinubu in his “Renew Hope Agenda,” and at the same time empower the Nigerians youths, and conserve the scarce foreign exchange the country is currently using to import products into the country.
The Association is therefore demanding urgent review of AfCFTA to enable the country benefit from the laudable scheme
Nigeria is yet to fully benefit from the Africa Continental Free Trade Agreement (AfCFTA) which commenced about three years ago as Nigerian manufacturers are unable to compete with their counterparts from many other African countries.
While Nigeria is benefiting from the scheme on entertainment, legal, banking and some other sectors, such could not be said in manufacturing.
“It is our opinion that for President Tinubu’s administration to deliver its “Renew Hope” policy to Nigeria, the minister must up DFI flow into manufacturing firms and new investments to attract more job opportunities to the country’s teeming youths.
“In the last few years, FDI into the country has dipped due to so many reasons which all of us are farmlair with”. CICAN observed.
The Association further noted that recently the Federal Government increased Valued Added Tax (VAT) from 5 per cent to 7.5 per cent thus shooting the price of diesel from about N600 per litre to about N800 – N900 per litre and as such local manufacturers who mainly depend on AGO known as diesel have bitterly complained about the negative impact the VAT hike in diesel has had on their operations as the country has been unable to guarantee stable public power supply.
“Some of the manufacturers who have interfaced with us (CICAN) have disclosed that the hike in the price of AGO was going to force many local manufacturing firms, especially, the Small and Medium Enterprises (SMEs) to closing shops if urgent steps are not taken by the government.
“The task is now in the hands of the Minister to seat with the umbrella of the local manufacturers, the Manufacturers Association of Nigeria (MAN), with a view to find solution the hike in diesel price has had on local manufacturing.” said the Association
