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Manufacturers seek understanding with state governments on revenue, policies

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Frank Jacobs, MAN President

Local manufacturers have expressed worries that revenue agencies across the states are beginning to exploit operators in an effort to shore up their revenue without addressing the infrastructural challenges experienced by the operators.

Indeed, Manufacturers Association of Nigeria (MAN), Ogun State Branch and Petroleum Product Sectoral Group of MAN, lamented the incessant illegal charges from Ministries, Department and Agencies (MDAs) of government.

According to the manufacturers, there is a need for the agencies to clearly define and harmonise their responsibilities with a view to ensure that operators are not over-burdened with the same regulatory requirements from different agencies.

They added that numerous charges and fees imposed by the agencies such as environmental development charge; chemical storage permit; laboratory analysis and the other charges have compelled companies to use the associates of the agencies’ officials for the assessment and audit report at ridiculous prices.

The president, MAN, Engr. Mansur Ahmed represented by the former chairman of MAN, Ogun State branch, Wale Adegbite at MAN’s 11th Chief Executive Officers and Managing Directors’ business luncheon in Ogun State, explained that the situation has continued to stifle the business community in the State with the sector already plagued with myriad of challenges.

In his words: “We have a lot issues in the State where the government is trying to use manufacturers as the source of revenue. We believe the means for raising revenue should be the use of taxation, but when the government tries to use the Ministries Department and Agencies (MDAs) and other agencies, we will kick against that. What we have been telling the government is that they should not use MDAs to raise money, but rather to introduce policies.”

He advised the government to be mindful about the impacts of its decisions and policies on the business community.

Also speaking at the event, the Chairman, Ogun State branch, Seleem Adegunwa, expressed belief that 2019 would be a landmark year for the entire industrial sector in Nigeria even as the country commence a new political journey.

He said every election year in Nigeria comes with its own unique challenges which have always had an impact on the nation’s economy and subsequently on the industrial sector.

He pointed out that the sector has been characterized by different political, social, economic, security and environmental challenges ranging from high cost of importing raw materials for production, inadequate infrastructure and the regulatory environment which he said has been a bit tense especially in respect of the Water Abstraction Scheme by the Ogun State Ministry of Environment.


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