MAN asks FG to synchronise policies for economic growth in 2019

Economic growth By Rukayat Moisemhe Lagos, Feb. 21, 2019   Manufacturers Association of Nigeria (MAN) on Thursday called on Federal Government to synchronise its monetary and fiscal policies in order to achieve the country’s economic growth projection for 2019. MAN’s Director of Statistics, Mr Israel Osidipe, made the call in an interview with the News […]



Economic growth
By Rukayat Moisemhe
Lagos, Feb. 21, 2019   Manufacturers Association of Nigeria (MAN) on Thursday called on Federal Government to synchronise its monetary and fiscal policies in order to achieve the country’s economic growth projection for 2019.

MAN’s Director of Statistics, Mr Israel Osidipe, made the call in an interview with the News Agency of Nigeria in Lagos on the 2018 fourth quarter report of National Bureau of Statistics (NBS).

He said that the performance of the economy in 2018 was positive though fragile due to its slow but steady growth rate.

This, he said, stemmed from the fact that the national output growth soared from 1.95 per cent in the first quarter to 2.38 per cent in the fourth quarter of the year.

In addition, external reserve improved, inflation headed southward, exchange rate was relatively stable, the supply of foreign exchange and the power supply to the sector improved marginally.

“All of these positive factors were credited to the various economic policy initiatives and reforms introduced by the government.

“The performance of the manufacturing sector in the course of 2018 was positive but its oscillatory growth pattern, however, remained a source of concern for stakeholders.

“For instance, in the first quarter of 2018, the growth rate stood at 3.39 per cent, fell to 0.68 per cent and 1.92 per cent in the second and third quarters and later increased to 2.35 per cent in the fourth quarter of the year.

“Capacity utilization increased marginally from 57.1 per cent in 2017 to 57.75 per cent while the aggregate local sourcing of raw materials by the sector also dropped to about 60.29 per cent in 2018 from 63.21per cent recorded in 2017,” he said.

However, Osidipe explained that the association attributed the wobbling performance of the sector to high cost of doing business, the prevailing infrastructure deficit, sluggishness in manufacturing activities due to the heaps of unsold inventory to mention but a few.

“Whenever the manufacturing sector experiences any form of growth, it generates trickle-down impacts on numerous macroeconomics variables.

“The current positive but wobbling growth pattern will positively impact utilization of local raw materials, productivity, employment, contribution to GDP, export earnings, growth of ancillary businesses and distributive segment of the economy as well as government tax revenue.

“Though, the overall growth of the economy still fell short of the country’s growth target of 3.5 per cent as stated in 2018 budget.

“And the projections of international organisations for the country, increased level of seasonal activities in the last quarter of the year across all sectors ensured that the country’s economy finished on a high.

“Chiefly among the factors that ensured a bigger positive growth in the last quarter is the non-oil sector which was aided by the inflation targeting policy of the Central Bank of Nigeria that ensured a relative increase in the purchasing power of the final consumer.’’

Osidipe added: “Though cost of doing business in Nigeria is still high, some achievements have been recorded in the ease of doing business in the country which has further given room for increased economic activities.

“However, it is not yet ‘Uhuru’ for the economy, particularly the non-oil sector, as perennial issues inhibiting the performance of business concerns are still very much present.

“Thus, for the country to achieve and surpass the growth projection for 2019, there is the need to ensure monetary and fiscal policy sync that would ensure sustainability of the recorded economic growth, harmonise taxes to avoid overburdening business concerns.

“In addition, sustain the backward integration policy to sustain FX stability and the need to deregulate the downstream sector to improve efficiency in the petroleum sector which has been the main pressure point for the nation’s forex.”
Edited by Edwin Nwachukwu

13 B/Haram terrorists, 23 family members surrender to troops in Borno -DHQ Malami donates N11m to Kebbi flood victims Jos airport renovation 95 per cent completed – Manager FG mulls policy on zero rating for educational websites Tourism Day: Nigeria to leverage on tourism to boost grassroots devt.- Minister Buhari’s policies yielding fruitful results – Gov Bagudu Ministry to create platform for lifting 100m Nigerians out of poverty Oil palm growers commend Buhari, CBN for empowering small holder farmers Nigerians renew call on Multichoice, others on pay as you go tariff NIHOTOUR will work with private sector for sustainable development of tourism -Kangiwa Men like Justice Karibi-Whyte, difficult to find anymore -NBA President Gov. Wike describes late Karibi-Whyte as a super hero, incorruptible jurist Inter hits two late goals to beat Fiorentina 4-3 Beaten Betis coach Pellegrini blames VAR in defeat to Real Madrid COVID-19: Nigeria cases now 58,198 with 49,722 discharged Ministry official advocates regular dog vaccination to end rabies by 2030 COAS inspects ongoing projects in Army Super Camp, Ngamdu School resumption: Expert advocates provision of clean water to check spread of infections Armed Forces College holds memorial service for 1992 Ejigbo plane crash victims Increased tariff: Previous administration created problem in power sector Scores of terrorists killed in massive airstrikes on hideouts in Borno – DHQ Wike promises early completion of 258-bed mother, child hospital in Port Harcourt Yobe IPAC agrees with LG elections postponement Brazil court postpones league game after several COVID-19 positive tests Don charges media on changing maternal health narratives FG hands over Ogoni remediation sites to NOSDRA for scientific analysis Chilean team discover match postponed after 1,500 km trip Buhari condemns attack on Gov. Zulum’s convoy, killings of security agents Edo election: We have learnt our lesson — APC Environmental: Kano Govt deploys 1,000 sanitation vanguards Christian women pray over insecurity in Jos Chelsea recover from 3 goals down to draw at West Brom Ondo 2020: No plan to collapse our structure for another party – ZLP Structure NGO tasks youths on self-development, empowers 100 with N200, 000 each FG set to address flooding as HYPPADEC takes off soon Students honour FRSC Oyo State sector commander Governors’ Forum pleads with labour unions to shelve planned strike Gov. Matawalle inaugurates planting of 10,100 trees in Zamfara Ortom condemns attack on Gov. Zulum’s convoy Shelve economic shutdown, Buhari deserves commendation – Group tells labour unions Everton win again after penalty kick controversy at Crystal Palace PRP NWC passes vote of confidence on National Exco Tennis: Second seed Pliskova hoping to be fully fit before opening match World Bank spent N90bn on community projects in 11 years – official Caligiuri leads Augsburg to stunning 2-0 win over Borussia Dortmund Manchester United earn dramatic win at Brighton with late penalty kick 100, 000 traders to benefit from “Trader money” in Kwara Pathfinder University confers professorship on Dabin, former Plateau PDP chairman COVID-19: Fayemi sympathises with Ekiti hoteliers, gives palliatives Fistula Foundation treats 37 VVF patients in free surgery campaign in Sokoto