LAGOS, Federal Republic of Nigeria. Manufacturers Association of Nigeria (MAN), yesterday, raised the alarm that many companies in the manufacturing sector might be forced to close down when they run out of raw materials to continue production.
Disclosing this at the 2016 MAN-Media Luncheon for the Commerce and Industry Correspondents Association of Nigeria, CICAN, in Lagos, President of the Association, Dr. Frank Jacobs attributed the worsening operations of many Bank of Nigeria, CBN, policy restricting some 41 items from accessing foreign exchange through official forex windows.
He said: The restriction of the items could be seen as the right direction to some extent, but that the policy measure had to be reviewed as some of the items on the restriction list include materials used by those manufacturers, which could not be sourced locally.
Jacobs said the call for revision of the forex policy on the affected items that could not be produced or sourced locally formed one of the association’s advocacy campaigns since last year in furtherance of its commitment towards stabilising the nation’s economy.
He said: “In the last one year, the association engaged government at all levels including Ministries, Departments and Agencies on a number of issues affecting the manufacturing sector and the Nigerian economy. Some of the issues advocated on were resolved while others are currently being addressed. In broad terms, the Association recorded remarkable advocacy successes.”
The industrialist explained that the advocacy had improved MAN’s consultation and contributions to strategic policies of government as members of several committees of government such as the Presidential Jobs Board, Steering Committee of Micro, Small and Medium Enterprises, MSME, as well as the Steering Committee of National Quality Infrastructure Project.
He listed some of the results of such constructive engagement with the authorities to include successful resistance of the implementation of MYTO 2.1 introduced by Nigeria Electricity Regulatory Commission, NERC, and Distribution Companies, DISCOs. He also recalled that the association was in court with NERC and the DISCOs on their contentious bills and had obtained an injunction restraining them from applying such charges or disconnecting members who refused to pay at the MYTO 2.1 rate.
The association also advocated for the removal of the monthly exorbitant fixed charges collected from electricity users by DISCOs; the non-reflection in MYTO 2.1 and the downward review of electricity bills for SMIs in particular and prorating of electricity charges to consumption.
Jacobs said the association had strengthened its cooperation and collaboration with government agencies, such as Standards Organisation of Nigeria, SON, Nigeria Customs Service, NCS, Raw Materials Research and Development Council, RMRDC, Nigerian Shippers Council, NSC, among others.
He pointed out that the association’s collaborations with SON led to the sustenance of the Memorandum of Understanding between the two organisations on the 25 per cent reduction on all SON administrative charges as well as SONCAP exemption for the importation of spare parts, machinery, raw materials and packaging materials and the issuance of the annual import permits to manufacturers.
He also disclosed that MAN had improved the implementation processes of the Pre-Arrival Assessment Report, PAAR, implementation processes in conjunction with the Customs Service.
Credit: National Mirror (Nigeria)
