Irked by the present state of economic recession the country is facing, the Manufacturers Association of Nigeria, (MAN), has stressed the need for a better structured and effective consultation among stakeholders to urgently evolve ways towards alleviating the hardship Nigerians are going through.
MAN suggested for dialogue between state governments and the association, saying the industrial sector participation was key to the economic recovery process.
Speaking at the 19th Joint Annual General Meeting in Kaduna, Thursday, the President of the association, Dr. Frank Udemba Jacobs, said the economy was in dire need of the symbiosis in order to get out of economic recession and breathe life into the efforts of government.
He noted that the shrunken federal allocated revenue behoves on the States to be more resourceful in the drive to generate wealth and provide for the wellbeing of their citizens.
He emphasised that the manufacturing sector remains the most viable ally of government in this regards, as it creates wealth, generates employment and engenders skill acquisition.
According to him, “The theme of the Annual General Meeting, “Survival of the Manufacturing Sector in a Depressed Nigerian Economy: The Way Forward” is quite topical as it captures the economic realities on the ground.
“With the fall in the price of crude oil in the international oil market and its attendant constrictions of our national income, the recession which the country has unfortunately slipped into, greater attention should be accorded the industrial sector as a key factor in the economic recovery process.
“We are all familiar with the challenges the manufacturing sector is passing through. What we require at this critical time is to be creative and see how or what we can do to remain in business.
“In this regard, I would like us to consider the option of resource-based industrialisation and greater utilisation of local raw materials for our production.
“We are all aware that one of the greatest challenges manufacturers are facing currently is scarcity of raw materials for production, as a result of the prevailing Forex scarcity.
“Unfortunately, the current over-dependence on imported raw materials was borne out of past policies of previous administrations. The resource-based industrialisation policy that involves the utilization of the abundant natural resources in producing the products that the country needs.
“This is a more sustainable and enduring form of industrialization, compared with the import-dependent industrialization which has been practiced in Nigeria for long.”
In his own address, Chairman, South West Kaduna branch, Ahmed Ladan Gobir, argued that the reality was that the manufacturing sector had numerous problems to contend with, which were largely responsible for its lackluster performance for quite some time now.
According to Gobir, “Principal among the problems facing manufacturers in recent times is the inability of manufacturers to access foreign exchange to import raw materials for production.
“Inability of the providers of energy to meet the requirement of this real and critical sector of the nation’s economy, lack of patronage and the pervading sense of insecurity as typified by armed robberies, kidnappings, vandalisation, among others.
“Manufacturers are now overburdened with the responsibility of providing their own energy and electricity through generating sets and diesel, providing extra security for their personnel, premises and equipment all with the attendant increases in our cost of production.
“Manufacturers have found it extremely difficult to survive with the current economic challenges and quite a number of us have begun to close shops.
“This development informed our choice of the theme for this 19th Annual General Meeting; “Survival of The Manufacturing Sector In a Depressed Nigerian Economy, The Way Forward.” A review of the performance of the economy showed a downward trend which makes the business environment quite challenging for manufacturers to thrive.
“More worrisome, is the high interest rate and unfavorable exchange rate that continue to be the bane of the Manufacturing Sector.
“Irrespective of the seemingly harsh business environment, manufacturers have continued to weather the storm and every member of MAN Kaduna Branch that is still doing business today indeed deserves our commendation.”
He, however, stressed the need for change of attitude to enable sector to inject innovative ideas that would be used to tackle the challenges which are daily facing the industries.
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