The Manufacturers Association of Nigeria (MAN) have tasked the Federal Government and monetary authorities to address the foreign exchange and energy crises responsible for the unfavourable movements in manufacturing indicators.
Mr Segun Ajayi-Kadir, Director-General, MAN, made the call at the Commerce and Industry Correspondent Association of Nigeria (CICAN) workshop and recognition of individuals and firms on Thursday in Lagos.
The News Agency of Nigeria reports that the event had as its theme: “Manufacturing: Despite FX and Energy Crisis”.
Ajayi-Kadir said that the frontline challenges of inadequate foreign exchange and energy crisis dipped the manufacturing growth output from 5.8 per cent in the first quarter of 2022 to 3.0 per cent in the second quarter.
He said these challenges massively affected manufacturers that were already confronted by inclement operating environment, compounded by the COVID-19 pandemic and the current Russian-Ukrainian war.
According to him, manufacturing indicators such as capacity utilisation, contribution to real Gross Domestic Product (GDP) investment, employment, cost of production, competitiveness among others were also negatively impacted.
He noted that increase in cost of energy pushed up global inflation which affected the cost of importation across the world, including Nigeria.
He added that with the limited foreign exchange inflow from crude oil sales, foreign exchange demand pushed over the bounds of supply and contributed to the depreciation in Naira value.
The MAN DG stressed that the challenges must be adequately addressed to arrest further degeneration in the performance of the sector.
“In doing that, we consider the following measure critical such as the allocation of significant proportion of available foreign exchange to the productive sector, particularly manufacturing.
“Further investment in the electricity value chain must be carried out and government must commit to adding 10,000 MW to the current electricity distributed in the country.
“Also, we must embrace and support significant development of renewable energy mix as the country has huge potentials for solar and wind,” he said.
Ajayi-Kadir added that the scope of road infrastructure should be expanded and the tax credit scheme developed and refurbished.
NAN also reports that Alhaji Akiko Dangote, Africa’s foremost business mogul, received the revolutionising manufacturing in Africa awards, while Mr Anthony Chiejina, Group Chief, Branding and Communication Officer, Dangote Group, received the corporate communications expert of the decade award.
Other awardees include Dr Muda Yusuf, for championing private sector cause, Mrs Omotayo Okewunmi, Public Relations Officer, MAN, for most efficient image maker and Ide John Udeagbala, National President, NACCIMA, for sustaining private sector advocacy.
NAN) Mr Jean Bakole, Regional Director of the UN Industrial Organisation (UNIDO) says that production of quality products remains key to the sustenance of Micro, Small and Medium Enterprises (MSMEs).
Bakole made the statement on Thursday at the 2nd project awareness dissemination event of strengthening the capacities of local to produce high quality Personal Protective Equipment (PPEs) and healthcare-related products, held in Lagos.
He said that the objective of the project was to ensure that MSMEs produced high quality products and also remained in business.
The UNIDO chief added that the project was also to ensure that the future of young people was secured, noting that MSMEs were crucial in economic growth.
”MSMEs constitute a big pillar in which any economy can stand, and production of quality products is important.
“We would like to see the ownership of the MSMEs grow beyond local consumption and also link them to international markets.
“About 162 MSMEs were selected for this project out of about 5,000 that applied and we are working to see the number of products to help project the products.
“We need to think outside the box in order to help the MSMEs.” Bakole lauded the European Union (EU) for funding the project, saying that the support of the union was fundamental for the MSME project.
Also, Ms Samuela Isopi, the EU Ambassador to Nigeria, said that the EU supported the project to help MSMEs produce PPEs to international standards.
Isopi was represented by Ms Cecile Tassin-Pelzer, Head of Cooperation of the EU Delegation to Nigeria.
She explained that the project was funded by the EU with 50 million euros through the basket fund to support 73 per cent of laid-off staff, due to COVID-19. Tassin-Pelzer added that the project was also to help create decent jobs that would focus on women and youths, noting that women and youths were mostly affected by the pandemic.
“We are moving together closely.
We are also pleased with the support and the cooperation with UN agencies and government in ensuring that the project progressed to this level.
“The EU will always partner and work with Nigeria, and we look forward to seeing sustainability and benefits in Nigeria,” she said.
Speaking also, Miss Vanasa Phala, the Country Director of ILO, described the project as timely.
She said that MSMEs contributed to job creation and that it was imperative to support the institution to enable them sustain their businesses beyond the project.
Phala emphasized the need to support the institution so that beyond the project, they would be able to sustain their businesses.
She, however, lauded the EU for being in the fore-front of supporting the project.
Also, Malam Farouk Salim, Director-General of the Standards Organisations of Nigeria, said that MSMEs were critical segment of the economy.
Salim, who was represented by Mr Ayodele Omotosho, Deputy Director, Laboratories and Chemicals in the organisation, said that development of the sector would contribute to economic growth.
He pointed out that production of quality products by MSMEs remained key in sustaining their businesses.
Salim, however, assured of the organisation’s commitment and readiness to collaborate with UNIDO and other UN partners.
Otumba Francis Meshioye, the Director-General of the Manufacturers Association of Nigeria (MAN), lauded UNIDO for the event, describing the project as apt and commendable.
He lauded other UN agencies for their contributions, while also appreciating the EU for funding the project.
Meshioye pledged the commitment of MAN to supporting UNIDO in the manufacturing sector interventions.
Otunba Francis Meshioye, a business mogul, has emerged as the 11th President of the Manufacturers Association of Nigeria (MAN).
This is contained in a statement signed by the association’s Public Relations Officer, Mrs Omotayo Okewunmi, on Monday in Lagos.
The News Agency of Nigeria reports that MAN; established in 1971, is an advocacy group with a vision “to be the key driver for industrialisation, sustainable economic growth and development in Nigeria.
” It is a focal point for communication and consultation between industry on the one hand, and the government and general public on the other to protect and project the interest of manufacturing industries in Nigeria.
The statement noted that Meshioye was elected at the association’s just concluded 50th Annual General Meeting held in Lagos.
It noted that his appointment followed the completion of the four-year tenure of Mr Mansur Ahmed, the immediate past president.
The statement revealed that the new president is the Executive Director, JMG Ltd and JMG Power Generators Ltd., Jamara Operations Ltd., Octopus Microfinance Bank and ET & F Investment Ltd. among others.
It added that he is on the board of government parastatal and member of several government committees.
“The newly elected President, Otunba Francis Meshioye, will bring his wealth of experiences in the management of corporate organisations to bear on the leadership of over 2,500 membership organisation.
“Prior to becoming President of the Association, he served as Chairman, MAN Ikeja Branch; Chairman, Finance and Establishment Committee and Vice President, Lagos Zone of the Association.
“Meshioye is currently a Council member, Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN) and has served as the Institute’s Treasurer, Chairman, Remuneration Committee and Chairman, Lagos State.
“He is also a member, Society of Company and Commercial Accountants (UK); Association of National Accountants of Nigeria (ANAN); Institute of Chartered Secretaries and Administrators (UK); Association of Investment Advisers and Portfolio Managers as well as Chartered Institute of Taxation of Nigeria.
“He is an Alumnus of the Prestigious Federal University of Technology, Akure (FUTA) where he obtained Masters degree in Business administration (MBA) in Technology, Marketing and Business Strategy.
“He also holds a Master’s Degree in International Management as well as a Law Degree, both from University of Liverpool, England,” it read.
The Manufacturers Association of Nigeria (MAN) has been lamenting the devastation wreaked by floods at the Onitsha Industrial Harbour in Anambra.
Onitsha Industrial Harbour is a cluster of manufacturing companies located near the Bridge Head on the bank of the River Niger.
National President of MAN, Chief Francis Meshioye, who led its leadership to assess the devastation on Friday, described the flood as massive and unfortunate.
Meshioye intoned that industrialists are patriots working for national economic growth and were resilient in ensuring that manufacturing continued in the face of myriad challenges.
He called on the Federal Government to look into the plight of Onitsha Harbour industrialists and apply medium-term and long-term measures to address flooding at the cluster permanently.
He stressed that government needed to realise that manufacturing is a sector that has to be supported if the economy must grow.
“We could not access some of the factories; the water level is so high that it has destroyed some of their machines; they have lost money; they have lost time.
“Compensation is good, but preventing recurrence is the most important thing.
There are options like dredging and the building of embankment to prevent overflow and construction of dams.
“If the Lagos state government could address the problem of Bar Beach overflow, the Federal Government should be able to contain this perennial flooding at Onitsha Industrial Harbour,’’ he said.
In his remarks, one of the industrialists, Chief Paul Okonkwo, said it was sad that no lesson had been learnt since 2012 when the new wave of flooding started.
The 2022 incident had worse impact on the area than in the past, he said.
Okonkwo, an octogenarian said the Federal Government should find a permanent solution as well as work out incentives including tax cuts to enable businesses to remain afloat after the flood.
Another industrialist at the Harbour, Igwe Chris Oranu, said the flood disrupted entire production chains including the sourcing of raw materials because of the destruction of farmlands.
Oranu said losses incurred by the manufacturers were huge and that there was a need to create an intervention fund to ameliorate the impact on the survival of affected businesses.
“The approach to solution has to be scientific so it can be sustainable,’’ he added.
In her remarks, Mrs Ada Chukwudozoie, Chairperson of MAN, Enugu Zone, covering Anambra, Ebonyi and Enugu states, said it would analyse the situation and propose a lasting solution to the Federal government.
The News Agency of Nigeria reports that about 16 industrial sites at the Harbour were partially or totally flooded.
The affected industries have suspended production for weeks after the flood.
On Tuesday, October 18, 2022, Amb. Dr. Benson Alfred Bana, High Commissioner of the United Republic of Tanzania to the Federal Republic of Nigeria, was a special guest at the Manufacturers Association of Nigeria (MAN) 50th AGM in Lagos.
Alhaji Aliko Dangote, GCON, Chairman and CEO of Dangote Industries Ltd, gave a lecture on "Setting the Agenda for Nigeria's Industrialization in the Next Decade".
The High Commissioner used the opportunity to invite captains of industries from Nigeria and West African countries to invest in Tanzania, highlighting the opportunities and incentives provided by the Government of the United Republic of Tanzania and the Zanzibar Revolutionary Government.
The Manufacturers Association of Nigeria (MAN), on Tuesday, presented a 10-year blueprint to accelerate the development of the sector.
Engr Mansur Ahmed, MAN President, made the presentation on the sidelines of the second Adeola Odutola’s lecture to commemorate the Manufacturers Association of Nigeria (MAN) 50th Annual General Meeting.
The News Agency of Nigeria reports that the event in Lagos, had as its theme: “Agenda Setting for Industrialising Nigeria in the next decade.
” Ahmed said the blueprint was backed with recommendations and roadmap targeted at growing the sector.
He said the crafting of the blueprint identified the centrality of manufacturing to industrialisation and economic prosperity of Nigeria.
Ahmed said that the document made key projections on manufacturing growth, export of manufactured products, contribution to Gross Domestic Product (GDP) and employment in the next 10 years.
“This policy document for the first time outlines what should be the manufacturing philosophy of Nigeria and clearly defines its objectives.
“It reviews the current status of the sector and highlights the peculiar burdens that manufacturers have carried over the years.
“For sure, blueprint 2.0 has identified policy options and the relevant government agencies to implement them and also set out plausible timelines for effective implementation.
“If diligently implemented, the suggestions would not only restore the fortune of the manufacturing sector but also redirect the Nigerian economy in the path of steady growth and sustainable development,” he said.
Ahmed also tasked the Federal Government to address incidences as increasing tax heads, inability to access credit and foreign exchange amongst other constraints limited the manufacturing sector.
He said that the performance of the manufacturing sector had been constrained by familiar challenges and that the increasing incidence of new tax heads payable by manufacturing concern was a major threat to the sector’s survival.
Ahmed said that the expectations of manufacturers going forward was that government would properly structure the tax system to be more progressive by widening the tax net.
He added that government was expected to harmonise business and put in place a comprehensive and integrated framework that would facilitate the intentional movement of operators in the informal sector to the formal sector.
Ahmed expressed hope that following the stable high crude oil price in recent times, government would intentionally intervene and ensure that more foreign exchange is made available to manufacturers.
“Equally challenging is the issue of inadequate supply and high cost of electricity, which is due largely to limited investment in electricity value chain.
“We want government to upscale efforts at improving power generation capacity, to take advantage of the abundant gas resources in the country by promoting more gas fired electricity plants.
“We urge government to allow manufacturers to access gas at the prevailing export price and classify manufacturing concerns as strategic user of gas to reduce the current high cost of energy and improve the competitiveness of the sector,” he said.
Otunba Niyi Adebayo, Minister for Industry, Trade and Investment, said the Federal Government in its bid to accelerate the country’s pace of transformation and further drive its economic diversification mandate was committed to actualising its industrialisation agenda.
To this end, the Minister, represented by Mr Adewale Bakare, Director of Industrial Development, said that government would continue to pursue five pillars toward the industrialisation agenda implementation.
“The manufacturing sector would enable the country to fully utilise its endowment and depend less on foreign supply of finished goods and raw materials for its economic growth, development and sustainability.
“The ministry under this present administration is committed to creating an enabling environment for industry, trade and investment in the country.
“We would also intensify the implementation of the Nigerian Industrial Revolution Plan, attract long-term local and foreign investment and champion the cause of Nigerian MSME as a means of creating jobs.
“The ministry would also continue in its integration of Nigerian businesses into the global value chain,” he said.
Alhaji Aliko Dangote, President, Dangote Group, has called for specific manufacturing policies to support and address the sector’s perennial challenges to drive industrialisation and economic growth over the next decade.
He gave the advice at the 2nd Adeola Odutola’s lecture to commemorate the Manufacturers Association of Nigeria (MAN) 50th Annual General Meeting (AGM).
The News Agency of Nigeria reports that the event, which held on Tuesday in Lagos, had as its theme: “Agenda Setting for Industrialising Nigeria in the next decade.
” Dangote also stressed the need for a shift in policy approach and strategy to reposition the manufacturing sector for growth over the next ten years.
According to him, it is imperative that the familiar challenges limiting the pace of industrialisation are frontally addressed while setting a clear-cut agenda for the next 10 years.
He, however, stressed that it was important to note that the current government policies, if fully implemented, were good enough to address most of the challenges beguiling the manufacturing sector.
Dangote noted that experience in various parts of the world showed that industrialisation drove economic growth and improved living standards as shown by the high output and per capita income in industrialised countries.
He stated that countries smaller than Nigeria such as Singapore and South Korea, had average per capita GDP of 65,233 dollars and 31,846 dollars respectively due to the level of industrialisation they had achieved.
The industrialist said in Nigeria, the policy dispositions and implementation strategies of successive Nigerian governments on industrialisation sought to create more employment opportunities, scale up the production of consumer goods and generate wealth.
He stated that though, these dispositions and strategies formed the kernel of public sector policies and planning, the country’s rate of industrialisation was slow.
This, he said, reflected in the low contribution of manufacturing to GDP, poor capacity utilisation and constrained export of manufactured products within and outside the continent.
“From the foregoing, it is evident that manufacturing is pivotal to industrialisation as no country in the world has ever industrialised or attained ‘developed nation status’ without having a thriving manufacturing sector.
“Consequently, any journey towards industrialisation must place strong emphasis on creating an enabling environment for manufacturing.
“You will agree with me that Nigeria has the potential and wherewithal for industrialisation given its vibrant and entrepreneurial population as well as its vast array of natural resources,” he said.
Dangote noted that in recent years, the country’s manufacturing sector’s contribution to GDP hovered around 9 per cent; which he described as low.
He added that the development indicated that previous efforts at industrialising Nigeria through manufacturing had not yet yielded the desired result.
He noted that the sub-optimal performance of the sector was due to the existence of binding constraints such as acute shortage of foreign exchange, dearth of long term funds, limited infrastructure, policy inconsistency and others.
He stressed that several factors such as security and rule of law, industry oriented government policy, adequate infrastructure, a well developed Small and Medium Enterprises (SME) sector needed to be in place to accelerate the growth of the sector.
He added that building human capacity, development of core industries, industry oriented research and development, and embracing technology would drive the country’s industrialisation agenda.
“Nigeria needs to henceforth intensify efforts at promoting industrialisation with specific focus on the attainment of the following targets in the next 10 years.
“15 per cent manufacturing sector growth, 20 per cent manufacturing contribution to GDP, 15 per cent growth in export of manufactured products, 10 per cent increase in the share of manufacturing to total export merchandise.
“The country also needs stronger inter-industry linkage between SMEs and large corporations, improved manufacturing contribution to government tax revenue and 20 per cent increase in manufacturing employment,” he said.
Dangote tasked all tiers of government to consult relevant stakeholders when taking far reaching decisions on key sectors of the economy.
This, he said, would make it much easier for manufacturers to make long-term business plans.
“In addition, policies that have been ‘tried-and-tested’ should be backed with an Act of parliament to give them legal backing and make them less susceptible to arbitrary changes by successive governments.
“With the collective effort of all stakeholders, it is feasible to move Nigeria from ‘developing nation’ to ‘newly industrialised nation’ status within the next 10 years,” he said.
The Manufacturers Association of Nigeria (MAN) says contrary to misconceptions in certain quarters, Nigerian companies are neither shutting down nor relocating from the country.
Mr Mansur Ahmed, MAN President, made the assertion on Monday in a Lagos while speaking on the side-line of the opening of the association’s annual Made-in-Nigeria exhibition.
Ahmed stated that rather than the misconceptions, new companies were thronging into Nigeria while more indigenous ones were springing up.
He said, however, that there was the need for the presidential committee on the monitoring of the implementation of Executive Order 005 to be called to action.
President Muhammadu Buhari signed the Executive Order 005 on Feb. 2, 2018. It was titled: “Presidential Executive Order for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology,’’ In the main, it directed Ministries, Departments and Agencies (MDAs) of government to engage indigenous professionals in the planning, design and execution of national security projects.
It also directed the MDAs to maximise in-country capacity in all contracts and transactions with science, engineering and technology components.
Ahmed said that the committee chaired by President Buhari and anchored by the Federal Ministry of Science and Technology should be mandated to ensure strict compliance with the order.
According to him, ministries, departments and agencies of government that fail to comply with the Executive Order should be sanctioned accordingly.
“Government must do everything it can to ensure that companies operating in this environment remain competitive.
“Policy environment is the first determinant of successful economy and we need these policies that have been created for manufacturing to be sustained.
“There must be no more policy summersaults.
Policies on taxation and on the financial services sector that would make credit more affordable and accessible are what the manufacturing sector requires.
“In order to grow the economy, create jobs and increase contributions to government revenue, the manufacturing sector must be supported to scale production through increased capacity utilisation and adequate patronage.
“We also call for the end to petroleum subsidy and the funds redirected to the real sector that produces and exports to generate more foreign exchange for the country,’’ he said.
The MAN president assured manufacturers of the association’s commitment to building on existing capacities and improving on the quality and competitiveness of products.
In his remarks, former President of MAN, Amb. Hassan Adamu (Wakili Adamawa) called for the support of the political class to shore up Nigeria’s manufacturing capacity and the actualisation of the country’s industrialisation agenda.
“Special focus must be on formulating and implementing policies to drive the manufacturing sector.
“Challenges such as multiplicity of taxes amongst others must also be duly addressed by the political class to drive economic growth and development,’’ he said.
Mr Segun Ajayi-Kadir, Director-General, MAN, described the increasing penetration level of made-in-Nigeria goods as commendable.
He attributed the development to their standards, safety and good quality assurance by regulatory agencies and manufacturers’ resilience in spite of the inclement operating environment.
Ajayi-Kadir added that the association had also embarked on several awareness and sensitisation exercises to draw the minds of Nigerians and other citizens to patronise made-in-Nigeria goods.
He noted that government as the biggest spender, as seen in budgets must ensure that MDAs patronised made-in-Nigeria goods and services to give the manufacturing sector the patronage it deserves.
“The monitoring process in the implementation of Executive Order 005 must be sharpened so that any tier of government that does not comply is held accountable.
Government must continue to demonstrate leadership by patronising made-in-Nigeria products,’’ Ajayi-Kadir stressed.
Mr Akim Oyediran, Chairman of the Manufacturers Association of Nigeria, (MAN), Cross River and Akwa Ibom Chapter, has expressed the intention of the association to partner the Nigerian Export Import (NEXIM) Bank to enhance exports from both states.
Oyediran expressed this on Saturday during his visit to identify industries that could export agricultural products in Cross River, to help them partner effectively with NEXIM Bank.The chairman said the chapter, under his watch, would key into the African Continental Free Trade Agreement (AfCFTA) and mobilise industry and companies with available opportunities in the export market.
“My visit to Cross River is to identify companies and industries that can export agricultural products and make them work together with NEXIM Bank, for them to get the necessary information needed from the Bank.“So far with what I have seen in this familiarisation visit, I am very impressed with the industries in the Calabar Free Trade Zone (CFTZ).
“The chapter is willing to partner with NEXIM Bank in the export of Syringes, rubber, transformers, recycling products and other agricultural products in the zone.
In his reaction, the Regional Head of NEXIM Bank Calabar office, Mr Soni Osaghale, said what MAN was doing was part of NEXIM Bank’s focus for export.
“We are set up as an Export Credit Agency (ECA), we understand the export market, do advisory services for the export market; our target is to drive export to earn foreign exchange for the government.
He added that NEXM Bank was ready to partner with MAN in the promotion of export goods in line with AfCFTA agreement.
The Kwara Chamber of Commerce, Industry, Mines and Agriculture (KWACCIMA) says more than 200 exhibitors and over 50,000 visitors are expected at the 9th Kwara Trade Fair. The President of the chamber, Alhaji Fatai Ayodimeji, made this known at a news conference to herald the trade fair in Ilorin on Tuesday.
Ayodimeji, who said that the fair, with the theme ‘Harmony through Commerce’, is scheduled to hold from Dec. 8 to Dec. 20. He said that Gov. AbdulRahman AbdulRazaq is expected to declare the fair opened.
The president said that the 8th Kwara trade fair held in 2021 recorded a high turnout of participants and visitors, saying over 100 businesses and entrepreneurs participated.
“The trade fair is scheduled to hold from Dec. 8 to 20, at the Kwara Stadium Complex, Ilorin.
“The 9th Kwara trade fair will aim to surpass the bar raised by the 8th trade fair.
We are expecting over 200 exhibitors to display different products with more than 50,000 visitors from within and outside the state.
“Trade fairs, generally, are to promote and create awareness for products, new businesses and innovations,” he said.
Ayodimeji added that the fair will help to showcase available agriculture and mineral resources of the host state.
He said the chamber had resolved to make the trade fair an annual event, thereby increasing it to become a reckoning international fair.
He also said that the chamber was working in collaboration with the National Association of Small and Medium Enterprises (NASME), the state govt.
and the Manufacturers’ Association of Nigeria (MAN) in Kwara and Kogi states.
“Importantly, the state government is the main collaborator, it is therefore expected that concerned Ministries, Departments and Agencies (MDAs), both at the federal and state levels, and the sixteen local government areas in Kwara will be taking part in the fair,” Ayodimeji said.
He commended AbdulRazaq for his leadership role to make the 8th Kwara trade fair grand, while appealing that similar gesture be extended to the 9th edition.
The president also urged the media to be part of the fair by assisting with publicity and coverage of all the events at the fair.
“Your support and cooperation are solicited, making Kwara proud should be our joint responsibility,” he urged.