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Manufacturing sector request monetary reforms

Manufacturing sector request monetary reforms
Photo by Ralph (Ravi) Kayden- Ask Nigeria

Operators project breakage of NNPC monopoly as sole importer of petrol.

Stakeholders of the Nigerian manufacturing sector request fiscal and monetary reforms for improvement of the country’s business environment and enablement of products competitiveness in domestic and international markets. They expect that the reforms would replace expenditures like fuel subsidy, directing them to productive ends to finance development of infrastructure. They added that monetary policy reforms, through management of the foreign exchange market of the country, could block financial leakages that would generate N4 trillion for the government in 2023 to finance significant infrastructures.

Operators further project that the reforms should break the monopoly of the Nigerian National Petroleum Company (NNPC) Limited as major importer of refined petroleum products and approve the request of the Manufacturers Association of Nigeria (MAN) to be given licenses to import refined petroleum products from the Republic of Niger. The Director of the Centre for the Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf, in his paper titled “Unlocking Revenues From Subsidy Regimes,” argued that the Nigerian economy is weighed down by the fuel subsidy regime and the foreign exchange subsidy regime.

Proposal for review of the exchange rate assumption in budget.

The foreign exchange policy regime is regarded as the second major subsidy regime which could generate massive revenues but has led to loss of trillions of Naira in the federation account. In 2021, there was a sale of an estimated $18 billion US dollars as interventions in the foreign exchange market at a subsidized average rate of N400 per dollar by the Central Bank of Nigeria (CBN). During this period, effective exchange rate in the economy was N560/per dollar. Resultantly, there was an estimated revenue loss of almost N3 trillion.

Yusuf stated that revenue losses caused by the foreign exchange policy regime damages the economy as much as the fuel subsidy does. However, the National Assembly and the CBN had greatly underestimated the exchange rate standard in the appropriation bills of the past few years. Therefore there is a suggestion for review of the exchange rate assumption in the budget to aid a reflection of the exchange rate realities and increase revenue to the federation account. This review is proposed to be done within the framework of the Finance Act which is in the process of being reviewed.

Nigeria has sole dependence on petroleum products.

Mr. Adewale-Smatt Oyerinde, the Director General of Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, stated that since the past decade the country has spent more than N20 trillion on fuel subsidies while about N15 trillion was spent on capital expenditure, N3.9 trillion on education and N2.5 trillion on health. These budget allocations are seen as misplacement of priority, revealing that significant developmental sectors like education, infrastructure and health have suffered as a result. The NECA boss asserted that the subsidy regime is carried out in secrecy and corruption.

The Director General of MAN, Mr. Segun Ajayi-Kadir, stated that the country’s way of attaining economic growth, sustainable development and industrialization has been jeopardized by lack of attention to growing challenges of the manufacturers who are supposed to propel its economic agenda. His observation revealed that Nigeria has sole dependence on importation of refined petroleum products and other essential manufacturing raw materials without sufficient options. There was a demand for issuance of licenses to manufacturers and operators in the industry to import petroleum products directly.

LCCI boss proposes investment in transport infrastructure.

President of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Michael Olawale-Cole, asserted that more effort should be put in investing in transport infrastructure for resolution to logistical challenges that affects transportation of goods across the country. He added that there could be an enhancement of Nigeria’s Forex earnings through increment in the inflow of foreign direct investments. He emphasized the need for investment in infrastructure and significant port reforms for reduction of hindrances in export logistics and processes for acceleration of nonoil production and exports.


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Admin
1
13 days ago

Manufacturing sector request monetary reformsOperators project breakage of NNPC monopoly as sole importer of petrol. – Express your point of view.

Member
8
12 days ago

As expected the reforms would improve sectors like education, infrastructure, health, country’s business environment. The need for investment in every sector will be appreciated cause it will also combat these challenges.

Last edited 12 days ago by Iyanu12345ogg
Abusi
Member
8
12 days ago

We need reforms in the manufacturing industry. A lot of things are not going well in the country..I wonder what NNPC is doing regarding this fuel scarcity.

Member
9
12 days ago

Manufacturing sector request monetary reforms. Sincerely the APC government really failed us in all ramifications.
Scarcity and expensive fuel price. Failed government

Member
8
12 days ago

The regime of foreign exchange policy is viewed as the second big subsidy, and although it has the potential to generate enormous profits, it has instead caused the federation account to lose trillions of Naira.

Member
8
12 days ago

Nigerian manufacturers have called for changes to the country’s fiscal and monetary policies in order to boost the country’s economic climate and make Nigerian products more competitive on both the home and foreign markets.

Member
8
12 days ago

They anticipate that the changes will replace expenses such as the gasoline subsidy, redirecting those funds to productive uses in order to finance the construction of infrastructure.

Member
8
12 days ago

Moreover, operators anticipate that the changes will end NNPC Limited’s monopoly as the country’s primary importer of refined petroleum products.

Member
8
12 days ago

It is lamentable that the gasoline subsidy regime and the foreign exchange subsidy regime are both dragging the Nigerian economy down to such a low level.

Member
8
12 days ago

These budgetary allocations are viewed as having the wrong priorities, which has had a negative impact on important development areas including education, infrastructure, and health.

Member
8
12 days ago

The foreign exchange policy regime is responsible for revenue losses, which harm the economy in a similar manner to how the gasoline subsidy does.

Member
8
12 days ago

There is a proposal for a reassessment of the budget’s assumption regarding the exchange rate, which would help the budget better reflect the realities of the exchange rate while also increasing revenue to the federation account.

Member
8
12 days ago

There was a need for the government to issue licenses that would allow producers and operators in the business to import petroleum products without going through a middleman.

Member
8
12 days ago

A reform is needed in most of the sector to make things going smooth and well the reform will help in improve and correct things in each sector. scarcity and expensive petrol things are not balance

Member
8
12 days ago

Federal Government should break the monopoly power of NNPC and approve the request of the Manufacturers Association of Nigeria (MAN) to be given licenses to import refined petroleum products from the Republic of Niger and let there be monetary policy reform that will ensure foreign exchange.

Member
8
12 days ago

Federal Government should approve the request of the Manufacturers Association of Nigeria (MAN) to be given licenses to import refined petroleum products from the Republic of Niger. The monopoly exercise by NnPC should be broken.

Member
8
12 days ago

The fact that both the foreign exchange and gasoline subsidy systems are bringing Nigeria’s economy to such a low point is regrettable.

Member
9
12 days ago

The manufacturing sector is not working at all,a lot of reforms need to be done in this sector for improvement to happen in this sector and issue of scarcity of petrol has been a thorn in the flesh and continues increase at all times.

Member
9
12 days ago

Nigeria need to invest in manufacturing sector of the economy because this will really boost our economy in a tremendous way and the citizens will gain lots of it.

Member
8
12 days ago

Reform is necessary in most areas of society in order to make things run more smoothly, and this reform will also help improve and correct the problems that exist in each sector. The things going on with scarcity and expensive gasoline don’t balance out.

Member
8
12 days ago

Similar to the harm caused by the gasoline subsidy, revenue losses caused by the exchange rate policy regime harm the economy.

Member
8
12 days ago

Businesses in Nigeria have advocated for reforms to the country’s fiscal and monetary policies in order to improve the economy and increase the competitiveness of Nigerian goods in domestic and international markets.

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