MAN charges new administration to permanently address currency transition
By Business AM
The Manufacturers Association of Nigeria (MAN) has tasked the incoming administration to permanently resolve the lingering difficulties with the currency transition within the first 100 days in office, starting from May 29, 2023, if it has not been completely addressed by the outgoing government.
A statement by the association, bemoaned the fact that challenges stemming from the country’s currency transition via the redesigned notes and cash swap implementation, has resulted in a more than 25 percent dip in sales of manufactured products.
MAN also tasked the new administration to direct the monetary activities of the Central Bank of Nigeria and ensure that it complies with the prioritisation of foreign exchange to the productive sector, particularly to manufacturers to import raw materials, spares, and machinery that are not locally available and taking immediate and time-bound steps to achieve the unification of the foreign exchange windows.
Among other expectations, the association called on the incoming government to direct the Nigerian Electricity Regulatory Commission (NERC) to admit all qualified applicant companies into the eligible customer scheme in order to allow them access to power as stipulated in the Electric Power Sector Reform Act 2005.
Segun Ajayi-Kadir, director-general of MAN, in the statement, also enjoined the government to direct all relevant agencies of government to ensure that the electronic call-up system at ports aimed at redressing the congestion works without fail.
Ajayi-Kadir further tasked the incoming administration to ensure that the Finance Bill 2022, if not assented to before the transition, includes the critical inputs of the organised private sector and take a definite stand by ordering the removal of fuel subsidy. The MAN DG added that the decision should be outright and immediate steps taken to activate the removal.
The economic turbulence experienced in 2022 had a negative impact on the manufacturing sector which recorded negative growths in the third and fourth quarters of the year. The manufacturing sector contributed 8.40 per cent to real GDP in Q4 2022 which is a significant decline compared to 8.46 per cent in the corresponding quarter of 2021.
Ajayi-Kadri reasoned that negative growth of the sector’s GDP sends a strong signal to potential investors in the sector, while stating that the impending result reflects a decline in manufacturer’s confidence in the economy.
To this end, the MAN leader said the association is desirous to see all recommendations implemented by the incoming administration.
“We believe that if the prosperity of Nigeria is paramount, then the productive sector should be given maximum priority for the general good of all in terms of wealth and job creation for the nation,” he added.