Manufacturers Association of Nigeria (MAN), said it will be discussing and setting an agenda that will enable Nigeria manufacturers to compete effectively under the African Continental Free Trade Area Agreement (AfCFTA).
The president of Manufacturers Association of Nigeria, Francis Meshioye stated this at a press briefing ahead of its 51st Annual General Meeting held in Lagos.
Meshioye stated that the theme for the 51st AGM tittled ‘Setting the Agenda for Competitive Manufacturing Under the AFCFTA: What Nigeria Needs to do’ was couched with a deep reflection over the growth trajectory of the manufacturing sector in Nigeria and Africa. MAN will be holding its 51st Annual General Meeting from October 17 to 19, 2023 in Lagos.
He noted that “in general, we are focused on the role of the manufacturing sector in the actualisation of the African Continental Free Trade Area Agreement and the integration of the African economy as envisioned in the Agenda 2063: ‘The Africa we want’.
“Currently, the cost of manufacturing is daily rising owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
“More worrisome is the fact that the sector that should propel job creation, productivity, and economic growth is enmeshed with a series of challenges that constantly limit its contribution to the Gross Domestic Product.
“Such challenges as epileptic power supply, insecurity, inadequate infrastructure, shortage of forex and naira depreciation are prevailing issues that are impacting negatively on the sector.”
He added that “if Nigeria manufacturers will compete effectively, then a comprehensive and concerted effort needs to be deployed by the government to overtake the binding constraints that limit local production and then seek to attract foreign investment that will bring about a reduction in the forex chase and ensure sufficient forex inflow that the country clearly requires.”
MAN president explained that “with a new administration steering the seat of governance, it is pertinent that all hands must be on deck to achieve a vibrant economy that can compete favourably.
“To start with, the government needs to prioritise investment in infrastructure and power, combat insecurity and corruption as well as introduce incentive policies that would make domestic production more attractive as against the importation of finished products.”
According to him, the AfCFTA window should be maximised in such a way that products manufactured in Nigeria would be the preferred in terms of quality and pricing. Until we address the binding constraints that make the local products uncompetitive, the benefit of a continental market might end up being a mirage for the largest economy in Africa.
“In the face of these shortcomings, we remain resilient and committed to our collaborative advocacy approach, as we strive towards the attainment of practical ease in doing business. We seek an atmosphere that supports favourable competition, with our counterparts in other countries, particularly within the continent.”