THE Manufacturers Association of Nigeria (MAN) said yesterday that poor power supply had remained the bane of manufacturing in Nigeria, arguing that it was one of the reasons why the cost of locally produced goods were beyond the reach of the average Nigerian.
In an address he presented during the 29th Annual General Meeting of the South East zone of MAN in Awka, the chairman of the association in charge of Anambra, Ebonyi and Enugu States, Chief Azubuike Okafor observed that in addition to poor electricity supply, harsh foreign exchange regime was also negatively affecting the productivity sector.
Speaking on the theme: “Inadequate Power (Energy); a Major Hindrance in the Manufacturing Sector of Nigeria” Okafor noted that the importance of stable and affordable electricity in the chain-line of production could not be overemphasised, adding that the lack of it was affecting the cost of production and eroding profitability.
Okafor said: “Aside foreign exchange sourcing which MAN has been able to handle squarely, the number one complaint from our members is energy (electricity). Apart from its unavailability/epileptic supply, the greatest grouse comes from astronomical billings and tariff structure.”
He said though MAN was in court with the DISCO’s and that there was a subsisting court injunction which covered some MAN members as regards the Multi-Year Tariff Order, MYTO, the DISCO’s seemed not to be prepared to heed the injunction as tariff were still being increased without recourse to the court order.
According to him, the manufacturing sector was still recovering from the shock of the economic recession of 2016, adding, however, that late passage of national budget was also affecting the predictability of the economy by firms.
He called for harmonisation of tax regimes and pronouncement of tax holidays for genuine manufacturing companies in the country for between 5-7 years, in order to stimulate investment and activities in the sector.
Okafor said manufacturers would appreciate more collaboration between the private sector players in Anambra, Ebonyi and Enugu states and their respective state governments to engender a more conducive atmosphere for business.
They also advocated for more patronage for Nigerian made goods to enhance viability and sustainability.
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