MAN Calls for Capitalisation of BOI, BOA, Demands Reduction ofVAT to 5%

The Manufacturing Association of Nigeria (MAN) has called for the recapitalisation of the Bank of Industry (BOI) and the Bank of Agriculture (BOA) to enable them to enhance access to credit by operators in the real sector of the Nigerian economy.

It also tasked the federal government to reverse the rate of the Value Added Tax (VAT) to five per cent, the point where it was before the introduction of the Finance Act of 2020.

These calls were contained in the MAN’s CEOs Confidence Index (MCCI) report for the Second Quarter of 2021, which made a number of recommendations to the federal government on how to improve the fortunes of the Nigerian manufacturers.

The report, which was released on Thursday, recommended the “recapitalisation of the BOI and the BOA to adequately meet the industry credit need at single digit interest rate; Providing a credit guarantee for industrial loans from commercial banks; Direct intervention from the governor of the Central Bank of Nigeria (CBN) to ensure that members of the MAN access the funds, particularly the N1trillion COVID-19 stimulus package.”

It also demanded that the federal government should “reverse the Value Added Tax’s rate back to the pre-2020 Finance Act rate to improve the disposable income of Nigerian workers, stimulate consumption, promote an upsurge in demand and increase production output.”

The MAN also asked that it should be updated on the current feasibility of the N220 billion Micro, Small and Medium Enterprises Development Fund (MSMED) and N300 billion Real Sector Support Facility (RSSF) and how its members could access it.