The Nigerian Association of Chambers of Commerce and Industry (NACCIMA) is canvassing a stable foreign exchange market and improved infrastructure to boost the manufacturing sector performance in 2017.
The association, which brings together chambers of commerce in the 36 states of Nigeria also wants an improved doing business environment to support the manufacturing and the non-oil sectors in the coming year.
“There is the need for the real sector to produce and be functional, while operators in the non-oil sector should be given incentives that will boost their operations in the sector,” said Bassey E.O. Edem, national president, NACCIMA, at a press briefing in Lagos.
“In order to achieve the desired recovery and growth as targeted in the 2017 budget, government needs to ensure that there is a lot of manufacturing activities to boost the economy through the provision of infrastructure, access to foreign exchange and improvement of the ease of doing business within the sector,” Edem counselled.
The NACCIMA boss commended the federal government for the revival of the Export Expansion Grant (EEG), which is a vital incentive that stimulates export-oriented activities that will lead to the growth of the economy.
“We look forward to further pronouncements on the effective date of this revival,” said Edem.
The manufacturing sector went into recession in the last quarter of 2015. The nominal GDP growth in manufacturing in the second quarter of 2016 was recorded at negative 1.02 percent, while that of the third quarter of 2016 was recorded at –2.93 percent.
Industries have been starved of foreign exchange needed to import inputs and machinery, while energy crisis and poor policy framework have hit the sector hard in 2016.
According to Edem, 2016 has been challenging for business operators owing to the drop in economic activities partly as a result of downward trend in prices in the global oil market, crash of the Nigeria’s crude oil output and government bureaucracy in the passage and implementation of the 2016 budget.
He said poor access to power continues to frustrate business operators, while lack of funds from commercial banks consistently deals a big blow on business.
“However, we acknowledge the efforts of the government in promoting alternative and renewable sources of power generation as evidenced by agreements between the government and certain energy firms. It is our sincere hope that continued progress will lead to the attainment of the 30,000 mega watts target that will meet the needs of every sector of the Nigerian economy by 2020,” added Edem.
He called on the federal government to review the composition of the team to include representatives of the Organised Private Sector (OPS) so as to pull the economy out of recession within the shortest possible time.
