Manufacturers in Nigeria are calling on the Federal Government to provide subsidies to the production industry in order to combat the challenges posed by increasing production costs. Rather than offering one-time palliatives that do not address the root issues, the manufacturers suggest redirecting resources as incentives for local producers to stimulate local production and enhance the country’s economic prospects.
This plea was made during a stakeholders engagement forum organized by the Manufacturers Association of Nigeria (MAN) in Anambra State over the weekend. The forum, themed ‘Access to Finance and Cheaper Funding for SMEs in Nigeria’, highlighted the obstacles faced by businesses in Nigeria, including limited access to finance, inadequate infrastructure, security concerns, high taxes, and policy inconsistencies.
Lady Ada Chukwudozie, the Chairman of MAN in Anambra, Enugu, and Ebonyi zone, emphasized the importance of providing incentives to manufacturers. She stressed that increased production leads to job creation, wealth generation, and economic growth. Chukwudozie advocated for a shift towards industrialization and exporting finished products while importing raw materials, rather than the current trend of heavy importation of finished goods.
Chukwudozie also called for investment incentives such as tax breaks, grants, and subsidies for manufacturers who invest in upgrading their technology and processes to enhance productivity and competitiveness. She urged the government to discourage subsidizing consumption and instead focus on supporting production.
Dr. Charles Odii, the Director-General of SMEDAN, highlighted the agency’s efforts to provide local manufacturers with access to affordable loans to support their businesses.
Overall, the stakeholders emphasized the need to prioritize productivity and industrialization in Nigeria to transform the economy from one based on consumption to one focused on production and export. By supporting local manufacturers and providing them with the necessary resources, Nigeria can boost its economic growth and competitiveness on the global stage.
