Nigerians Must Brace up for Tough Economic Times, Says MAN

The Manufacturers Association of Nigeria (MAN) has urged Nigerians to brace up for a very difficult time going forward into the year, stating that the nation is transiting from what it called a disorganised system to a more organised system and would require sacrifices on the part of every Nigerian to get the country back on track.

The President, MAN, Dr. Frank Jacobs, explained that Nigeria had been living in a fool’s paradise for a very long time with no economic development despite all the proceeds it got from crude oil, pointing out that the economic situation is only going to get much worse until the nation starts making concrete and sustainable developmental steps in adjusting the economy.

Jacobs during MAN’s annual media luncheon, said: “The situation is going to get worse before it gets better, but our prayer is that things do not get worst for long. We believe by the third quarter of 2016, things will begin to improve.”

He however stated that the association is totally against the proposed plan by the federal government to increase Value Added Tax (VAT) in the country.

“No doubt Nigeria is the only country in West Africa paying the least amount of VAT, but the country is plagued with lots of challenges and MAN will not support the increase of the VAT rate at this time. It is our hope and prayer that the federal government does not increase VAT at this time,” he said. On the ban on the 41 items by the CBN, Jacobs said the policy was a step in the right direction to an extent, but stressed that the 41 item when broken down to what is called HS codes came to about 680 items where only 95 items of the 680 are essential raw materials for its members.

“We have appealed to the CBN to remove those items from the list and if that had been done, we would have been shouting for joy because the rest of the 585 items will be to the benefit of the country because if those items are not imported, it will be better for the economy,” he said.

He said the current MPR at 11 per cent by the apex bank is still high, pointing out that the only way Nigeria can diversify the economy is when interest rates charged to manufacturers come in the region of 3 to 5 per cent.