Manufacturers list threats to local industries, offer solutions

The Manufacturers Association of Nigeria (MAN) has listed threats to the growth of local manufacturers, with the current interest rate top on the list.

The body lamented that the interest rate are not only preventing industrial growth, but also killing existing businesses.

Consequently, it urged the Federal Government to urgently direct the Central Bank of Nigeria (CBN) to drastically reduce interests on industrial loans.

In his speech at 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), Bioku Rahman called for drastic reduction of interest rates.

He said: ‘The CBN should as well direct Deposit Money Banks (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.”

Rahman also urged the Bank of lndustry (BoI) to approve and urgently roll out further reductions in its 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 government to harmonise taxes and levies at the federal, state and local government levels.

Rahman charged the Kwara State government to boost energy for his members’ survival, appealing: “a heavy-duty gas-energy generation and distribution plant exclusively for Kwara State industrialists is needed.”

The helmsman again wanted the Federal Government to reconsider the present gross increase in the electricity tariff.

Also addressing the gathering, MAN’s National President, Francis Meshioye, commended his members’ symbiotic relationship with the Kwara State government, which he described as encouraging.