Local manufacturers seek removal of barriers to business growth
LOCAL manufacturers ha ve voiced their concerns over the persistent economic challenges, including rampant inflation, dying consumer demand, disruptions in supply chains, foreign exchange illiquidity, limited access to credit, power shortages, regulatory burdens and escalating production costs.
According to them, the issues have notably hindered the growth and flow of investments into the country's manufacturing sector.
They further decried t he difficulty in acce ssing funding for the expansion of manufacturing operations.
They alleged that interven - tion funds for the pharmaceutical industry meant for local manufacturers are being allocated to international companies from India, Lebanon, and China while indigenous operators are starved.
The hurdles cause the closure of numerous local manufac - turing businesses, particular - ly in the pharmaceutical industry, which are unable to withstand the harsh business en vironment, they said.
The issues were expressed during the sixth anniversar y of St Rachel's Pharma in Lagos.
The Director General of the Lagos Chamber of Commerce and Industry ( LCCI), Dr Chinyere Almona, said Nigeria’s manufacturing sector is at a crucial juncture, facing significant challenges, yet possessing untapped potential.
Almona highlighted the shuttering of several manufacturing firms, a consequence of severe economic and financial difficulties compounded by regulator y constraints.
Despite these challenges, she emphasised that the manufac - turing sector continues to serve as an essential component of the economy, making signifi cant contributions to output growth while creating emplo yment opportunities, with a nominal value standing at N36.02 trillion.
However, she pointed out that r ecent performance indicators provide a grim outlook, with average growth rates in decline, prompting concerns among stakeholders.
Almona advocated for a comprehensive approach to address these issues, including revisiting policy measures, laws, and regulations to stimulate investment, improve infrastructure, and cultivate a more favorable business climate.
She called for an update on the status of the Renewed Hope Infrastructure Development Fund, which aims to boost infrastructure investment nationwide.
Furthermore, she stressed the necessity for accessible and affordable long- term financing at single- digit rates to aid manufacturers facing liquidity issues, along with simplifying tax procedures and reducing the tax burden on businesses.
The Chief Executive Officer of St. Rachel's Pharma, Akinjide Adeosun, condemned the restrictive monetary policy that focuses solely on inflation control rather than economic expansion.
Highlighting successful manufacturing growth in countries like Ghana, Ba ngladesh, and
South Africa, Adeosun raised questions on why Nigeria is unable to replicate the successes. He urged enhanced governmental support and in vestment in the local pharmaceutical sector, emphasising the need for long- term financing and regulatory reforms to promote growth and create a more supportive business en vironment.
Echoing these concerns, the
Chief Executive Officer of Healthplus, Mrs. Bukky George, pointed out the apparent dis - parity in funding opportunities between local and foreign manufacturers.
She provided anecdotal evi - dence sug gesting that Federal Government intervention funds tend to fa vour international firms, exacerbating the challenges local manufacturers face in expanding their op erations and engaging in the Africa Continental Free T rade Agreement ( AFCFTA).