MAN At 50: Salvaging The Manufacturing Sector

Must Read

- Advertisement -

At the 50th anniversary of the Manufacturing Association of Nigeria (MAN), the DG of the association, Segun Ajayi-Kadir, stated that F X restriction policies by the CBN as well as the impact of the Covid-19 pandemic have forced 415 companies to stop manufacturing over the past one year.

The D G listed several supply-side constraints limiting productivity within the sector, including traffic logjam at the ports slowing down access to imported raw materials, infrastructure (including power & transportation), land acquisition, multiplicity of taxes & levies from different tiers of government, and inconsistent government policies.

True to the comments of the DG, the manufacturing sector has been held back b y the various challenges plaguing firms within the sector. Over the past five years (2015- 2020), the manufacturing sector has averaged real GDP growth of -0.9%.

Interestingly, the sector has contracted thrice. This is a stark contrast to the prior five years where the sector averaged growth of 1 3.3%.

- Advertisement -

We think the manufacturing sector mirrors the struggles of the general business operating environment and ease of conducting economic activities profitably.

In our opinion, we believe an overhaul of the business environment including physical infrastructure (like ports, transportation, & power) and policy framework (resource control, foreign exchange, taxation, land laws, and regulations, etc.) would be needed to stimulate a rebound in the fortunes of the manufacturing sector.

Read Also:  Reinventing equity research as a profit-making business

This has become more imperative as the AfCTA kicks in. This is because Nigeria could lose a significant amount of investment to other business-friendly African countries who would then export to the huge Nigerian market in the absence of huge tariffs and other trade limitation

- Advertisement -
spot_imgspot_img
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

GTBank Training School

New GTBank Training Complex dedicated to memory of Co-founder Tayo Aderinokun

Ten years after the passing of the co-founder and former Managing Director of Guaranty Trust Bank (GTBank), Mr Tayo Aderinokun MFR, the leading financial...
- Advertisement -
spot_imgspot_img

Latest News

New GTBank Training Complex dedicated to memory of Co-founder Tayo Aderinokun

Ten years after the passing of the co-founder and former Managing Director of Guaranty Trust Bank (GTBank), Mr Tayo...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -spot_imgspot_img