Domestic production, local patronage as lessons from COVID-19 in Nigeria
While the pandemic continues to ravage the world, the organised private sector has identified major post-pandemic rescue plan for the manufacturing sector to include key incentives and support for local patronage for quick recovery.
According to the Lagos Chamber of Commerce and Industry (LCCI), one key lesson of the Covid 19 is the imperative of domestic production and building capacity for self-reliance.
The chamber added that the global supply chain disruptions took a heavy toll on the manufacturing sector and to accelerate a rebound of the sector, local patronage and other incentives are necessary.
The Manufacturers Association of Nigeria (MAN) had decried low patronage of locally produced goods despite conforming to standards and enduring the huge cost of production.
Specifically, local manufacturers decried the poor electricity supply to industrial firms, over-regulation, multiple taxes and levies, poor accessibility to ports/high demurrage, poor economic infrastructure, and difficulty in sourcing foreign exchange, low patronage and counterfeiting/influx of substandard goods.
To address the concerns and revamp the economy, the Director-General of the LCCI, Dr. Muda Yusuf said the government should ensure its agencies adhere to the patronage of made in the Nigerian products, adding that government should create a strong monitoring framework to ensure compliance with the relevant executive order.
He also advocated import duty waiver on machinery without the need for any bureaucracy, for at least 12month, noting that this would facilitate the completion of ongoing projects by industrialists, as the country needs growth and jobs.
Other recommendations include: “Health sector raw materials and equipment should attract zero import duty. This is necessary to incentivize greater private sector investment in the health sector.
“Manufacturing raw materials and intermediate products should attract import duty waiver for six months. One key lesson of the Covid 19 is the imperative of domestic production and building capacity for self-reliance. The global supply chain disruptions took a heavy toll on the manufacturing sector. To accelerate a rebound of the sector, this incentive is necessary.
“Agro-processing inputs should enjoy import duty waiver for one year. Suspension of excise duty payment for manufacturers for one year.
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