Manufacturers call for removal of industrial constraints to spike growth

Manufacturers say government at all levels must focus on resolving constraints hindering industries from performing optimally.

Segun Ajayi -Kadir, director-general of the Manufactures Association of Nigeria (MAN), stated this last Thursday at the 5th annual general meeting of MAN Kwara/kogi states branch held in Ilorin, the Kwara State capital.

Speaking on the theme ‘Circular Economy: A Tool of Wealth for Manufacturers’, he said manufacturing sector needed to improve for the economy to thrive.

“If you don’t industrialise, you will always be poorer,” he said.

“We are entering African Continental Free Trade

Area (AFCFTA), where competitiveness is the key. There should be conscious effort by government to address challenges making manufacturing in Nigeria uncompetitive.

“The issues of infrastructure, multiple taxation, access credit, among others, have to be addressed.

“We have insisted that for any manufacturing to prosper with any loan facility, it has to be not more than 5 percnt because we are competing with countries where interest rate is far lower than 4 percent. So, you can see in the market if you are not price competitive, there is no way you can survive.

“So, access to affordable and competitive credit line is important so that that we are not left in a disadvantaged position in the global market.”

He commended Federal Government efforts, just as he enjoined Nigerians to keep faith and support the government.

In his submission, Kamorudeen Yusuf, chairman of the group, disclosed that smuggling of illegal items into the nation has become a trending issue in the country, constituting serious threat to manufacturers.

He noted that stimulation of local production of various products have generated millions of direct employment of Nigerians and attracted huge investment from new as well as the existing plants in Nigeria.

“Galvanised r oofing s heets, a utomotive b atter y , furniture, cigarettes unfortunate and unpatriotic activities of the economic saboteurs have done a huge damage and devastating effect on the manufacturers with the negative consequences on our investment.

“Despite all the efforts by the Nigerian investors in various sectors of the economy to ensure full achievement of the Federal Government objectives of economy recovery, employment generation, youth empowerment and improved human capital development , t he market has continually recorded free flow of smuggled substandard products which are dumped by some countries through their cronies in the country . This is antithetical to industrial development and aspiration of Nigerian people.”

Kamorudeen , who is also the g roup m anaging d irector/ceo of KAM Industries Nigeria Limited pleaded for government intervention to savage the ugly situation to curb the negative effect as it may trickle don to citizens as well.

Kamorudeen Yusuf, chairman of Kam Group, has emerged as the head of Basic Metal, Iron and Steel group of the Manufacturers Association of Nigeria (MAN).

Kam Industries, based in Ilorin, Kwara State, produces nails , wire mesh for concrete reinforcement, binding wires and roofing sheets, among others.

The company has five factories in Ilorin and a granite quarry, and is estimated at over $300 million.

The newly elected chairman of Basic Metal, Iron and Steel, in an interview lamented that genuine investors in the country pay import tariffs to the government while smugglers flood the market with substandard goods without paying any

duty.

He admitted that the Central Bank of Nigeria (CBN) makes foreign exchange available for manufacturers and supports them in many ways, but warned that nothing would be achieved when smuggling is rife.

He urged the Standards Organisation of Nigeria (SON) to stop allowing substandard steel products into the local market.

“A situation where the SON says products should not be less than 0.15mm but some flood the market with products with less than 0.12mm calls for concern,” he said.

He stressed the need to plug such leakages to save multi-billion naira investments in the country.

He pledged that he would do everything within his powers to raise the status of the steel sector in the country.