MAN seeks procurement Act review to drive backward integration

Despite the myriad of challenges confronting the real sector, the Manufacturers Association of Nigeria (MAN) has stated that implementation of Procurement Act would encourage investments in the manufacturing sector as stakeholders would begin to explore opportunities in backward integration.

According to the MAN President, Frank Udemba Jacobs, government, despite being the largest spender in the economy, depends heavily on imported items thus making the manufacturing sector dependent largely on the private sector.

Following the futility of the Act, he said MAN has initiated a campaign for review of the Act to make it more binding on MDAs, Federal and States government and indeed all government establishments to give priority to procuring home-made products.

He also identified smuggling of contraband goods into the country and counterfeiting of Made-in-Nigeria products as the two major drawbacks to the growth and development of manufacturing in the country.

He noted that the grey activity by unscrupulous individuals thrives in the country despite the various anti-smuggling and products counterfeiting laws.

“Unfortunately, the daunting adverse effect of these maladroit trade practices has constrained the performance of the sector in various ways to include; capacity utilisation, employment generation, reduced inventory of stock of unfinished Nigerian manufactured goods and expansion propensity in the manufacturing and industrial sector”, he added.

Speaking at one-day stakeholders’ campaign strategy forum on patronage of made-in-Nigeria products in Lagos, Jacobs said: “A plethora of evidence shows that the government is the largest spender in the Nigerian economy and that most of its purchase items are imported. However, it is worrisome that a good proportion of the items imported by the government are available locally.

“Unfortunately, the fall-out from foreign procurements is that the Nigerian government through this unnecessary importation is creating jobs and economic growth in foreign economies with Nigerian resources, he said.

He noted that the current Procurement Act is laced with discretionary dicta under which Ministries, Departments and Agencies (MDAs) and government can carry out such unpatriotic procurement incognito.