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‘Value chain linkages to improve manufacturers’ market access, growth’

By Femi Adekoya and Benjamin Alade
25 May 2016   |   1:09 am
To improve real sector growth and address challenges bordering on capacity utilisation, the Manufacturers Association of Nigeria (MAN) has advocated increased value chain linkages between small and large...
Frank Udemba Jacobs, President Manufacturers Association of Nigeria

Frank Udemba Jacobs, President Manufacturers Association of Nigeria

To improve real sector growth and address challenges bordering on capacity utilisation, the Manufacturers Association of Nigeria (MAN) has advocated increased value chain linkages between small and large manufacturing enterprises in the country.

According to MAN, improved small businesses’ access to market, enhanced investment flows, skills development and technological advancements, is expected to be driven through its recently inaugurated Large Corporation Group.

Indeed, the move is expected improve vertical linkages between small enterprises and larger manufacturing and service industries, while enhancing horizontal links among small businesses as part of measures to overcome the constraints impeding growth among businesses.

Speaking at the inauguration of its Large Corporation Group at a meeting organised by General Electric in Lagos, President, MAN, Dr. Frank Jacobs, said one of the most crucial tasks before the group is the facilitation of effective linkage between small and medium scale industries as well as large scale industries in the production and supply value chain.

According to MAN, the group will among other things come up with policy recommendations that will lead to a conducive economic and social climate for the operation and development for large scale industries in Nigeria.

Stakeholders at the meeting noted that indigenous SMEs will have to network and build alliances to be able to survive and compete effectively in the present global economy.

According to them, there is strong evidence that forming alliances, clustering and networking help small firms to compete, grow and cooperate with large firms.

They added that by working together, firms can gain the benefits of collective efficiency, enabling them to link with larger producers and break into national and global markets.

In her remarks, Minister of State for Trade, Investment and Industry, Dr. Hajia Aisha Abubakar said the Federal Government was committed to creating the enabling environment for manufacturing to thrive in the country.

Abubakar said the Federal Government is aware of the challenges faced by the manufacturers in the area of low capacity utilization as well as infrastructure deficiency especially in poor energy supply, poor access to technology, unfair completion, and multiple taxation among others.

“Government is not unconcerned with the current foreign exchange crunch hitting factories in the country and its consequent implication particularly those that have ran out of critical materials”, she added.She assured that measures are in place to address the challenges.

Jacobs said: “It is the expectation of the Council that the LCG will provide the needed advice and support, and at all times demonstrate willingness to contribute to the accomplishment of MAN’s mandate and leadership role in the Organised Private Sector.

“MAN is a well structured organisation, with different organs, performing specialised functions but operating in a well-coordinated and harmonised way. It is expected that this principle will guide the operations and deliberations of the large corporations group.

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