The (MAN) has listed existing conditions hampering the growth of local manufacturers, heaping most on the present interest rate on loans.
The MAN lamented that the interest rates prevent industrial growth and kill members’ existing businesses.
Consequently, MAN has urged the federal government to urgently direct the Central Bank of Nigeria (CBN) to drastically reduce industrial loan interest.
Presenting his speech at the MAN’s Annual General Meeting (AGM,) in Ilorin, Kwara State, themed: “tackling the challenges of the manufacturing sector: A win-win for government and local manufacturers,” the group’s outgone chairman (Kwara and Kogi,) Pharmacist Bioku Rahman called for drastic Reduction of interest rates on
Industrial Loans.
“The CBN should as well direct Deposit Money Bank’s DMB’s (Commercial Banks) “to reduce interest rates on industrial loans. The Interest rates charged on Industrial Loans and other loans released as COVID-19 palliatives should
be significantly reduced further to one per cent,” Bioku sought.
He also urged the Bank of lIndustry (BOI) to approve and urgently roll out further reductions in it’s lending rates to Industries, asking the CBN to wave many conditions for its foreign exchange policies to local manufacturers.
He advised: “CBN should widen the window of Foreign Exchange to Local Industries,” calling on the federal government to harmonise taxes and levies at Federal, State and Local Government levels.
He however urged the Kwara State government to boost energy, further to his members’ survival, saying: “A Heavy-Duty Gas-Energy Generation and Distribution Plant exclusively for Kwara State Industrialists is needed.”
The group’s helmsman again wanted the federal government to reconsider the present gross increase in the electricity tariff.
Bioku pleaded: “Government should reverse the over 200 per cent increase in the Electricity Tariff approved for Distribution Companies (DisCos), and revert to the Old rates or at best, an increase by only 40 per cent as requested by the DisCos themselves.”
Also addressing the gathering, the national president of MAN, Otunba Francis Meshioye, commended his member’s symbiotic relationship with the Kwara State government which he described as encouraging.
He recalled how the state waded into and settled the recent face-off between the Ibadan Electricity Distribution Company (IBEDC) and some member companies in the “Band A” category during which the companies were disconnected.
He commended the state government’s truce move through the commissioner for Business, Innovation, and Technology, Mrs. Damilola Yusuf-Adelodun, recalling: “At the meting it was resolved that in line with the Court Order of Injunction obtained by MAN, members should continue to pay the old rates of N74.43/KwH pending the determination of the suit in Court.
Meanwhile, MAN chapters in Kwara and Kogi States have elected Mr. Mubarak Damilola Shittu and Mr. Gbenga Adeola (Secretary) among other executive members.
