The Manufacturers Association of Nigeria (MAN) has said that although current economic reforms under President Bola Tinubu have created difficult conditions for Nigerians and their businesses, the measures are both necessary and welcome for long-term growth.
Chairman of MAN in Cross River and Akwa Ibom States, Dr. Adoga Inalegwu, made this known in Calabar over the weekend during a familiarization tour of member companies in the state capital.
According to him, Tinubu’s administration has taken bold decisions that Nigeria urgently needs to address its structural economic challenges.
“I think President Bola Tinubu’s policies are necessary and tough decisions that Nigeria needs presently. If we keep deceiving ourselves that everything is okay or keep palliating ourselves, we will never solve our problems,” he said.
Dr. Inalegwu particularly pointed to tax reforms as one of the administration’s major steps, saying while they have their drawbacks, manufacturers stand to benefit from reduced incidences of multiple taxation.
“One of the fundamental advantages is the shrinking basket of multiple tax issues that we face. That for me is important. Also, the attempt to improve the disposable income of the population is commendable,” he noted.
On the foreign exchange market, the MAN chairman acknowledged the continued burden of high rates, with the naira trading at a little over ₦1,500 to the dollar, but welcomed the relative stability.
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“We are not satisfied with the exchange rate, but we are happy with the stability. We are also happy that it is not just stable — the dollar is also available. In 2023, I know how much I suffered sourcing for Forex. I suffered big time,” he said.
He, however, admitted that despite the stability, manufacturers are still forced to import raw materials at double the former costs.
“The good news is that Forex has had some bit of stability, but the cost implications are still huge for manufacturers,” he added.
While acknowledging that the policies are not flawless, Inalegwu stressed that member companies have developed strategies to adapt and survive.
“This doesn’t mean that there are no member companies bearing the brunt of the times. But when times are difficult, you have to evolve strategies not just to survive, but also to thrive. Nigerian manufacturers can still be resilient, ambitious, and forward-thinking even when things are not very rosy.”
Despite backing the reforms, Inalegwu expressed displeasure over the recent 2.5 percent increase in Value Added Tax (VAT), warning that it significantly impacts firms with high turnover.
“The magnitude of the increase to many firms that spend billions is significant enough. One way or the other, it will impact revenues. I’m not happy with that,” he said.
The MAN boss concluded that although the path of reform remains challenging, manufacturers are hopeful that the policies will, over time, stabilize the economy and create a more conducive environment for business growth.