The Manufacturers Association of Nigeria (MAN) has continued to lament the present interest rate on loans among its members, saying that it should be further reduced to one per cent.
Speaking at the Kwara/Kogi MAN’s 10th Annual General Meeting (AGM), themed Tackling the Challenges of the Manufacturing Sector: A Win-Win for Government and Local Manufacturers,” the group’s outgoing chairman, Kwara/Kogi Pharmacist Chief Rahamon Jimoh Bioku, said that the present interest rates are killing their businesses.
The event, which produced a new chairman in Mubarak Damilola Shittu, chairman/executive director of Dele Groups, had Dr. Hassan Ibrahim Sani as vice chairman.
This is just as the MAN urged the federal government to urgently direct the Central Bank of Nigeria (CBN) to drastically reduce interest rates on industrial loans.
“The CBN should as well direct DMBs (commercial banks) to reduce interest rates on industrial loans. The interest rates charged on industrial loans and other loans released as COVID-19 palliatives should be significantly reduced further to one per cent,” Bioku said.
He also urged the Bank of Industry (BOI) to approve and urgently roll out further reductions in its lending rates to industries, asking the CBN to wave many conditions for its foreign exchange policies to local manufacturers.
“CBN should widen the window of foreign exchange to local industries,” he said, calling on the federal government to harmonise taxes and levies at federal, state, and local government levels.
Bioku, who urged the Kwara State government to boost energy for his members’ survival, said that “a heavy-duty gas-energy generation and distribution plant exclusively for Kwara State industrialists is needed.”
The group’s helmsman again wanted the federal government to reconsider the present gross increase in the electricity tariff.
Reflecting on the effect of oil subsidy removal on the local manufacturers, the MAN said: “As we endure these bitter pains of subsidy removal and the realities accompanying the same, we call on the government to urgently come to our aid because the bitter removal of subsidies in Nigeria has left manufacturers in unprecedented comatose.
“It is sardonic today to note the countless number of industrial establishments that have gone under. The few ones still struggling to operate have required monumental support from the government. But more sadly, the government support has not been forthcoming to the required level,” MAN lamented.
In his speech, read by the state commissioner for business, innovation, and technology, Damilola Yusuf Adelodun, Governor Abdulrahman Abdulrazaq of Kwara State declared the state government’s continual support for the MAN to boost the economy of the state.
The governor promised that the state government would continue to create a conducive environment for the manufacturers in the state.
“Under my leadership as the Governor of Kwara State, we have undertaken several key initiatives to support the manufacturing sector and overall economic development.
“Our Urban Renewal Initiative is transforming the architectural landscape of Kwara State to enhance its aesthetic appeal and functionality, making it a more attractive place for businesses and residents.
“We are also committed to infrastructure development, with ongoing construction of an extensive network of roads linking various parts of the state for seamless connectivity, construction of ICT Innovation Hub, construction of International Conference Centre (IICC), rehabilitation and remodelling of Kwara Hotel, Garment Factory, many sports facilities, and improved logistics for businesses.
“We remain focused on our Ease of Doing Business Policy, which was designed to create
business-friendly environment by simplifying regulations and procedures, making it easier
for businesses to establish and thrive in our state.
Also speaking, the president of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, described the theme of the AGM, “Tackling the Challenges of the Manufacturing Sector: A Win-Win for Government and Local Manufacturers,” as apt and timely.
Meshioye also commended Governor Abdulrahman Abdulrazaq for a good relationship, which he said that MAN members in Kwara State currently enjoy with his government and for the recognition accorded MAN whenever the Branch had cause to call on him or any of his officials.
“One such gesture was displayed recently when the electricity supplies of companies that belong to the Band A categorisation of electricity users in Nigeria were disconnected by IBEDC.
“I call on the State to ensure that this relationship is sustained and deepened. Furthermore, I strongly appeal that the infrastructure around the industrial estates be upgraded.
“While, in the same vein, we assure you that MAN will continue to partner with your government in the development of the economy of Kwara State.”
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