PATRICK ABANG Calabar –
The Manufacturer Association of Nigeria (MAN) has frowned at the deplorable roads infrastructure between Cross River and Akwa-Ibom states.
The Association specifically decried the poor state of the Calabar,–Itu Federal Highway which has made goods and services impassable.
This is contained in a communique issued by Cross River/Akwa Ibom State Manufacturing Association of Nigeria on the 16th Annual General Meeting of Cross River/Akwa Ibom States Branch of Manufacturers Association of Nigeria (MAN) held at Hoggis Hotels Calabar with the THEME: SUSTAINING LOCAL PRODUCTION IN A CHALLENGING AND A COMPETITIVE ECONOMY; MANUFACTURERS PERSPECTIVE.
The body decried the deplorable condition of Calabar-Itu Highway and other major roads that links the two states which could have assisted in the inflow and outflow of raw materials and finished goods to desired market.
MAN said electricity supply is a major challenge to manufacturers. The public power supply is both inadequate and unreliable.
“The cost of generating own electricity is daily escalating with high cost of diesel, electricity generators and spare parts.
“Apart from Corporate tax, manufacturers are encumbered by multiple taxation from the states and the local Government where we are operating.
” Manufacturers have found it very difficult to access foreign exchange for importation of machinery, spare parts and raw materials. Also volatility of the exchange rate makes it very difficult for planning and business projection.
“Most commercial banks attach very stringent conditions to lending.
“The lending tenor is short and interest rate is very high only suitable for trading and not for manufacturing.Competition with smuggled goods:
“Cheap goods, mostly manufactured from China are dumped in the Nigeria market. These goods compete with those manufacture locally in very challenging environment.
“There is need for Nigeria Customs to step up their game and minimizing dumping of goods.
“Depressed Economy/low purchasing power: The removal of subsidy on Premium Motor Spirit and floating of the Naira Exchange rate has resulted in a double digit inflation thus depreciating the purchasing power of most of our customers.
“The economy is depressed and needs stimulation to crate demand for products.Lack of Basic infrastructure: The collapse of public water supply in the region has caused manufacturers to develop independent source of water supply.
“This has increased the cost of production. Government should resuscitate public supply. In conclusion, the Cross River and Akwa Ibom states should develop policies that should encourage the manufacturing industry especially those utilizing locally sourced raw materials to site their factories in the region”