Segun Ajayi-Kadir, the Director-General of the Manufacturers Association of Nigeria (MAN), highlighted insecurity, excessive taxation, and expensive energy as significant obstacles for manufacturers in Nigeria. He called on the government to implement policies that would enhance the Manufacturing sector’s productivity. This was discussed in an interview. He stated that the current business environment is challenging, mirroring the difficulties seen in various industries worldwide. The aftermath of Covid-19, along with ongoing geopolitical conflicts and heightened tensions, have had a significant impact on the business landscape.
Since the removal of the petrol subsidy, there has been a noticeable increase in the prices of goods and services in the market. Despite the government’s claims of acting in the best interests of the people, many feel disconnected from their decisions. They should maintain collaboration with the government to ensure they prioritize addressing necessary issues. While they have shown awareness through some actions, it is important to have candid discussions to ensure alignment. Collaboration between the private and public sectors is essential for effective governance.
It is essential that they achieve a harmonious synergy.
Instead of a dominating relationship, it is important for these sectors to work together in harmony. In the economy, the Private Sector holds significant influence while the Public Sector is responsible for the Welfare of the people as a whole. In order to advance, it is essential that they achieve a harmonious synergy. This administration has implemented numerous reforms that are necessary for progress, whether they agree with them or not. The key issue now is how they handle the consequences of these changes.
There was a necessity to adjust the forex rate and eliminate subsidies. Managing the repercussions of negativity is crucial in preserving businesses. Engage with industry stakeholders to receive valuable feedback for a quicker and smoother achievement of objectives. Both government and the private sector must adapt to minimize challenges and ensure survival. Facing the issue of Insecurity has been a significant obstacle for them. Unfortunately, they have seen a decrease in their membership from 56 to 60% in the North-East due to Security concerns, resulting in halted production. The expenses required to ensure safety have skyrocketed, a stark difference from the past when security was not a primary concern.
Maintaining a positive outlook and projection is important.
The cost of security is often prioritized over taxes by many people due to its ongoing nature. Insecurity poses a significant obstacle that impacts manufacturing and other businesses, requiring the government to increase its efforts. The current administration is undoubtedly making significant strides in addressing these challenges. It was anticipated that performance would improve in the second half of the year, as the company expected to have successfully navigated through the transition period of reforms and experienced some growth. Maintaining a positive outlook and projection is important for both the company and employee confidence.
In order for the government to ensure everything is properly secured, it must prioritize implementing sufficient security protocols and strategies. President Bola Tinubu wasted no time in making his priorities clear when he first took office. He emphasized the importance of boosting domestic production. Despite the presence of ambitious entrepreneurs in Nigeria’s manufacturing sector, overall performance has been lacklustre due to ongoing environmental obstacles. They thought that the President’s announcement indicated a dedication to eliminating those restricting limitations. All that is left is for them to witness his team spring into action.
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Additionally, it is crucial that the government’s policies align with the President’s words. In order to maintain the government’s commitment, it is essential to compare every statement made by the President with this promise. This will prevent manufacturing costs from rising and avoid conflicts between fiscal and monetary policies that could hinder sector performance. Unforeseen events and unexpected surprises can hinder the progress they have worked hard to achieve. While some reforms have boosted domestic production, it is challenging to balance these improvements with policies that restrict the industry.