MAN urges FG to improve power supply, reduce interest rate

By Kayode Ogunwale

 

THE Manufacturers Association of Nigeria (MAN) has urged Federal Government to improve on ease of doing business in Nigeria.
Speaking at the 45th Annual General Meeting (AGM) of MAN in Lagos, the President of Association, Dr. Frank Udemba Jacobs enumerated issue of power, foreign exchange and high interest rates as major hindrance for manufacturing to thrive in the country.
According to him, the issue of power should be given topmost priority, as we know that without adequate and stable power, economic and social development will be a mirage.
He stressed that, issue of foreign exchange for the importation of essential manufacturing inputs is equally important saying, “but if we tenaciously drive the resource-based industrialisation programme, this can be overcome.”
“I can safely say that no nation has recorded significant economic development with unrestrained high interest rates. The case of Nigeria will not be different. With the prevailing double-digit interest rates, the Nigerian economy will continue to suffer decline. Therefore we recommend, as the Association has done in the past and always, a single-digit interest rate.”
If Nigeria want to be reckoned with in the comity of nations as an industrialised country, Jacobs said the problems facing industrialists are critical issues that must be addressed.
Reiterating the position of MAN on EU-ECOWAS Economic Partnership Agreement (EPA), he said MAN has made its position clear on the need to reject the proposal, appreciated the Federal Government for agreeing with the MAN position.
He appealed to the government to maintain its stand because of the anticipated destructive impact of the EPA on the Nigerian economy.
“MAN sees the proposed admission of Morocco into ECOWAS as equivalent to signing the EPA through the back door. We therefore urge the Federal government to vehemently oppose the move as it would spell doom to the productive sector of the economy.”
In his part, the guest speaker, former President of the United Republic of Tanzania, Excellency, Mr. Benjamin William Mkapa described EPAs as the modern day equivalent of the Berlin Conference Treaty.
He said, Africa negotiated the EPAs under unprecedented economic duress and coercion.
In the process African governments were arm-twisted into glossing over some very pertinent aspects of the agreement essentially for EU’s economic expediency, he said.
“We were told that in order to continue to have access to European markets, Africa is required to eliminate tariffs on over 80 percent of imports from the EU. In some cases, they will have to abolish all export duties and taxes; in others, countries can retain existing export taxes but not increase them or introduce new taxes. They will be called upon to eliminate all quantitative restrictions and meet all kinds of other intrusive and destructive conditionalities that literally tie the hands of African governments from deploying the same kinds of instruments that all countries that have industrialised applied to build competitive national economies.
To me this is an invitation to commit economic suicide and you have made the right call to reject the EPAs. The key principle underlying them is the market access based on reciprocity. “
Narrating effects that EPAs will have on Africa economy, Mkapa said EPAs will put the regional trade and integration at risk.
He further that, EPAs will oblige governments to undertake significant reforms and design and create new policies which will have significant costs attached, including adjustment costs and revenue loss as a consequence of tariff elimination.
“In our region, the EU has vehemently refused to include a Development Matrix in EPA. Instead, the burden of assembling Development Capital is left to the recycled, unreliable, and cumbersome European Development Fund (EDF), and the Aid for Trade (AfT) Programme.”
In conclusion, he said, the elimination of tariffs will also have an adverse impact on state revenues.