The Manufacturers Association of Nigeria (MAN) has described the reversal of the 43 items on the prohibition list by the Central Bank of Nigeria (CBN) “as not only dangerous but also very unhealthy for the nation’s economy”.
MAN said the reversal is a policy summersault.
Its Vice President, Southwest Zone, Dr. Kamoru Yusuf, who is also the Chairman Basic Metal, Iron and Steel and Fabricated Metal Products, said the country is at a very dangerous situation.
He added that the economy is exposed to numerous challenges and risks.
Said he: “The effect of the reversal and removal of ban on the 43 items will create a serious setback on the productive sector, thereby impacting negatively on virtually all other critical areas such as unemployment, youth restiveness, wrong declaration at the ports, importation and flooding of Nigeria’s market with substandard products and above all, proliferation of the country with arms and ammunitions.
“Most financial institutions are really confused, and this policy, if not quickly reversed, may lead to the distress of some banks while massive loss of jobs is looming. This fear is open for the CBN to verify.”
The MAN chief, however, suggested solutions in free trade zone, lost tax and revenue.
“Part of the possible solution is the immediate review of the policy surrounding the operation at the free trade zone in Nigeria, which has been subjected to serious abuses with little or no value addition to the economy nor generating FX to the country.
“The government needs to investigate and harvest the comprehensive list of the companies who registered under the free trade zone, including the claimed value of their investments.
“We, therefore, wish to appeal to Mr. President, Bola Tinubu, through the Minister of Industry, Trade and Investment, to institute an inquiry into the operations of the FTZ to audit the number of companies registered under free trade zone, their business activities/model and their initial claim when registered and compare this with the data with the Nigerian Customs for the value of goods coming into the country,’’ he added.
He said the steel sector plays similar role as that of cement, sugar, fertilizer and petrochemical industries, all of which can provide the needed tripod-support for the development of other light industries in the country.
“Federal Government of Nigeria needs an all-inclusive review of the 43 items restricted from accessing FX in the official trade window as this will put further pressure on the official market with an indirect impact on the parallel market as well.
“Federal Government needs to continue with the bold steps it has already taken in the liberalization of the FX market and the eventual subsidy removals on petroleum products, which in the long terms, if these suggestions are followed, with further attendant consultations, will yield a greater impact and turn around the country’s economy for the good of all.”
He said the only way Nigeria can participate successfully in the African Continental Free Trade Area (AfCFTA) and successfully compete among countries in the continent is to develop our giant industries. We can look at China, which always underwrite their capital projects under Sinosure (China Credit Insurance Corporation).
“The Federal Government should also borrow a leaf from other developed nations as well as some African countries by creating platforms for credit insurance underwriters in order to reduce the huge risks involved in capital projects. Government also needs to create more funding windows and other support infrastructure to elicit rapid industrial development.
“There cannot be significant growth in the sector without the intervention by the Federal Government where and when necessary. Government should be the driving force behind the steel industry, which has the capacity and potential to resolve part of our social unrest by getting thousands of unemployed youths off the streets through direct and indirect job opportunities,” he added.
