Manufacturers Association of Nigeria, MAN, has stated that even though the current economic policies of President Bola Tinubu’s administration have brought tough times to Nigerians and their businesses, yet they are necessary and welcomed.
Chairman of MAN in Cross River and Akwa Ibom States, Dr. Adoga Inalegwu, stated this in Calabar over the weekend after a familiarization visit to member companies in Calabar.
“I think President Bola Tinubu’s policies are necessary and tough decisions that Nigeria needs presently. This is because if we keep deceiving ourselves that everything is the way it should be, if we keep palliating ourselves, we will never solve our problems.”
“So he has made very bold moves. Okay, look at, people complain about the tax reform. Tax reform has its pros and cons.
“One of the fundamental advantages it posits for manufacturers is shrinking, reducing the basket of multiple tax issues that we are faced with. So that for me is important. And also the fact that he has tried to improve the disposable income of the population.”
The MAN boss, however, stated that they are not satisfied with the high exchange rate of a little over N1,500 to one dollar in recent times but are nevertheless happy that it has been stable for some time.
“We are not satisfied with the exchange rate, but we are happy with the stability. We are also happy that it is not just stable, the dollar is also available.
“We no longer struggle to source for Forex. In 2023, I am the one that knows how much I suffered in sourcing for Forex. I suffered big time.”
In spite of the stability, he said MAN members still import materials from abroad as inputs into their manufacturing process at double the former costs due to high Forex issues. “The good news is that Forex has had some bit of stability.”
According to him, the economic policies may not be perfect, but things are looking up even though it is not all a completely perfect story.
He stated that their member companies have learnt to adapt to the difficult times.
“This doesn’t mean that there are no member companies that are not bearing the brunt of the times.
“When times are difficult, you have to evolve strategies to survive. And not just to survive, but also to thrive.
“Nigerian manufacturers can still be resilient, can still be ambitious, can still be forward-thinking, even when things are not very rosy.”
Inalegwu expressed unhappiness in the increase in Value Added Tax, VAT, by 2.5 percent, saying that it is really significant, impacting against many firms.
“The magnitude of the increase to many firms that spend billions is significant enough. One way or the other, it will impact on revenues. I’m not happy with that.”
