Sango-Ota (Ogun) – Mr Wale Adegbite, the Chairman of Ogun Chapter of Manufacturers Association of Nigeria (MAN) has appealed to the Federal Government to intensify efforts at addressing obstacles confronting manufacturers in the country.
Adegbite made the appeal at the 32th Annual General Meeting on (AGM) of MAN on Thursday in Ota, Ogun.
The News Agency of Nigeria (NAN) reports that the AGM had the theme: “Developing a Workable Work plan For Environmental Sustainability – Cost Implications, Benefits and Drawbacks’.”
According to him, there is urgent need to strengthen the real sector by removing all bottlenecks restraining its growth and competitiveness.
The MAN boss identified some impediments that had marred economic activities in the sector to include multiple taxation, lack of foreign exchange by manufacturers, relatively high interest rate charged by banks, epileptic power supply, non availability of local input and bad roads.
”The scarcity and high cost of sourcing for forex as well as higher interest rate by nation’s financial institutions made it difficult for manufacturers to bring in their raw materials.
”Thus, resulting in decline in production and profit margins, huge layoffs, salary reduction and factory closure,” he said.
Adegbite said that the harsh economic environment was characterised by all these factors that discouraged further investment and impediments to competitiveness of the sector.
”We urge the Federal Government to make dollars available for manufacturers, grant tax incentives and rebates to ease the economic burden and attract further investments.” he said.
The MAN boss said that the ability of the Federal Government to tackle those challenges would enable the sector to be optimally productive to play its expected role of employment generation, capital mobilisation and wealth creation, among others.
Gov. Ibikunle Amosun of Ogun, said the current administration would continue to support MAN and new investors to move the state forward positively.
Amosun, represented by Mr Abimbola Ashiru, the state Commissioner for Industry and Commerce, commended the MAN for its efforts toward industrialisation in the state.
”Industriasation plays vital role in the economic development because it is through this that the nation can eradicate unemployment and poverty rate,” he said.
Amosun, however, enjoined manufacturers to consistent pay their taxes so that the government could provide conductive environment for businesses to thrive. (NAN)