The Manufacturers’ Association of Nigeria (MAN) has commended President Bola Tinubu on his administration’s plans to give 75 manufacturing enterprises access to a N1billion credit at 9% interest rate per year.

 

The association, in a statement signed by its Director General, Segun Ajayi-Kadir,  gave the commendation, while reacting to the July 31 speech of the president, where plans, by the federal government, to cushion the effects of the hardship being presently faced by individuals and corporate organizations in the country were unveiled.

 

It described the N1billion access credit as good way to begin to address the dearth of loan-able funds in the face of rising lending rate, occasioned by the continued increase in the MPR by the CBN.

 

MAN noted that the small and medium scale enterprises remain the most impacted by the prevailing economic downturn, with access to credit acting as a major challenge.  It therefore expressed its strong belief that the  allocation of N125billion to energise the segment will give fillip to their businesses, and help overcome the paucity of funds occasioned by low capacity utilisation and unprecedented low sales in recent times.

 

It, however, stressed the need for the federal government to ensure that the vehicles for delivery of these loans  are carefully selected, and the implementation diligently monitored.

 

The association also urged the  federal government to ensure that the promised 3000 units of  20-seater buses are procured from indigenous automobile industries.  Doing this, it argued, will be a golden opportunity for  the administration to demonstrate unfailing commitment to the implementation of the subsisting Executive Order 003, which prioritizes the patronage of made- in – Nigeria products.

 

The group  tasked the government on the need to address other attendant challenges, including the calculation of the import duty for production inputs, at the floated rate, while calling for the discontinuation of the continued denomination of the gas price in dollars, so as to bring down rising costs of production, and ameliorate the lackluster performance of the manufacturing sector.

 

It also expressed the belief that the president, through the speech, has removed  binding  challenges, bedeviling the  productive sector.

 

The association argued that the decision to boost the capacity of the nation’s productive sector to enable it create jobs,  and  pay salaries, is far more beneficial than palliatives, which, it stated, would only give nominal relief.