The Manufacturers Association of Nigeria (MAN) has again lamented the daily rising cost of production, owing to scarce and unavailable manufacturing inputs.

The body said these rising costs continue to shrink profits and threaten the existence of this critical sector of the economy. MAN added that more worrisome is the fact that the sector, which should propel job creation, productivity and economic growth, is being dwarfed with a series of challenges that constantly limit its contribution to the Gross Domestic Product (GDP) growth.

“Challenges such as epileptic power supply, insecurity, inadequate infrastructure, shortage of Forex and Naira depreciation are prevailing issues that are impacting negatively on the sector and threaten our continued existence in this country,” it stated.

Announcing the association’s forthcoming 51st yearly General Meeting (AGM) scheduled to hold from October 17 – 19, at the Lagos Oriental Hotel, Victoria Island, the body’s president, Francis Meshioye, said the theme for the AGM is, “Setting the Agenda for Competitive Manufacturing Under the AfCFTA: What Nigeria Needs to do.”

He revealed that the theme was couched with a deep reflection on the growth trajectory of the manufacturing sector in Nigeria and Africa and they are focused on the role of the manufacturing sector in the actualisation of the African Continental Free Trade Area Agreement (AfCFTA) and the integration of the African economy as envisioned in the Agenda 2063: “The Africa we want.”

Meshioye regretted that industries were being left to die. He said for local manufacturers to compete effectively, a comprehensive and concerted effort needs to be deployed by the government to overtake the binding constraint that limits local production and look to attract foreign investment that will bring about a reduction in the FX chase and ensure sufficient FX inflow that the country clearly requires.

He urged the government to prioritise investment in infrastructure and power, combat insecurity and corruption as well as introduce incentive policies that would make domestic production more attractive as against the importation of finished products.

Meshioye added that the AfCFTA window should be maximised in such a way that products manufactured in Nigeria would be the preferred in terms of quality and pricing.

“Until we address the binding constraints that make the local products uncompetitive, the benefit of a continental market might end up being a mirage for the largest economy in Africa. In the face of these shortcomings, we remain resilient and committed to our collaborative advocacy approach, as we strive towards the attainment of practical ease in doing business. We seek an atmosphere that supports favourable competition with our counterparts in other countries, particularly within the continent,” he stated.

He added that the association’s commitment towards addressing the challenges informed the choice of the speaker at the third edition of the Adeola Odutola Lecture; the former Managing Director of Goldman Sachs in London, Olusegun Aganga, as their goal is to suggest a policy direction for the new Government.