Incentives should be for export-oriented manufacturers — Cardoso

* Tasks manufacturers on forex diversification

*Economic reforms shouldn’t destroy businesses — MAN

By Yinka Kolawole

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said that incentives should be targeted at manufacturers that are producing for exports.

He stated this at the 54th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Apapa Branch, while charging manufacturers to lead efforts to diversify Nigeria’s foreign exchange (forex) earnings from crude oil dependence.

Speaking on the theme, ‘Complementing the Oil Sector as a Major Forex Earner: Strategy for Manufacturing to Fill the Gap’, Cardoso who was represented by Mr Aliyu Ashiru, Head Division, Trade & Exchange Department of CBN, stressed that manufacturing held significant potential to conserve forex, expand exports with value-added products, create jobs at all levels, and enhance macroeconomic stability.

He emphasized the need for a deliberate, coordinated, and long-term strategy to unlock the sector’s full potential and transform it into a major forex earner.

He listed strategic pillars for growth, including policy alignment, investment in infrastructure and energy, access to finance and forex, value addition, and backward integration.

According to him, there is a need for a comprehensive industrial policy prioritising export-oriented manufacturing.

His words: “This policy must be stable, predictable and aligned with trade, monetary and fiscal frameworks.

“Incentives such as tax holidays, duty waivers for machinery, export rebates and investment guarantees should target manufacturers producing for export markets. Nigeria must move from exporting raw materials to value-added products.

“This requires deliberate investment in backward integration, especially in agro-processing, petrochemicals and solid minerals.”

He assured that the apex bank would continue supporting the sector through proactive monetary policies and targeted financing interventions.

In his remarks, Chairman, MAN, Apapa Branch, Raphael Danilola, called on the federal government that ongoing economic reforms do not lead to the destruction of businesses in the country.

He stated: “While we remain supportive of the various reform measures put in place to reposition our economy, we believe that the implementation of such reforms should be in a manner that will contribute to our continued survival and existence.  

“The current economic downturn requires measures to help manufacturers stay in business, especially with competition from the continental free trade agreement. Our ability to operate and compete in the regional market depends on government policies and actions that shape the business environment and provide the necessary infrastructure. We call on the government, both at the state and federal levels, to support the sector.”  

Also speaking, Executive Secretary of MAN, Apapa Branch, Sunday Okpe Adejoh, lamented the negative impact of the duplicating functions of government agencies on manufacturers.

“Some of the Lagos State government agencies carry out similar oversight inspection or regulation on the same factory, duplicating every effort required of the company to meet their demands, especially payments. We urge the government to do a review of the acts establishing some of their agencies to reduce manufacturers’ burden and encourage investors,” he stated.

The post Incentives should be for export-oriented manufacturers — Cardoso appeared first on Vanguard News.