Urging the Federal Government to subsidize the production sector to counter the impacts of increasing production costs is a key request from manufacturers in Nigeria.
They propose that rather than simply providing resources as a one-time palliative that could leave people worse off in the long run, the Government should redirect these resources as incentives for local producers to stimulate domestic production and enhance the country’s economic prospects.
This appeal was made during a stakeholders engagement forum hosted by the Manufacturers Association of Nigeria (MAN) in Anambra State over the weekend. The forum also delved into discussions on facilitating fund accessibility for small businesses.
Themed ‘Access to Finance and Cheaper Funding for SMEs in Nigeria’, the Forum highlighted challenges such as lack of financial access, inadequate infrastructure, insecurity, high taxation, policy inconsistencies, among others, which significantly impact businesses in Nigeria.
Chairing the event, Lady Ada Chukwudozie, Chairperson of MAN in Anambra, Enugu, and Ebonyi zone, emphasized the importance of providing incentives to manufacturers. She emphasized that increased production leads to wealth creation, job opportunities, and ultimately enhances the economy. She noted that promoting industrialization, exporting finished products, and reducing heavy reliance on importation are crucial for economic growth.
Chukwudozie advocated for discouraging the subsidization of consumption and promoting subsidies for production. She suggested that the government can offer investment incentives like land, tax exemptions, grants, or subsidies to manufacturers who upgrade their machinery, technology, and processes to bolster productivity and competitiveness.
Continuing the discourse on transforming the economy, she emphasized the shift towards becoming a productive economy instead of a consumption-driven one, focusing on exporting finished products and importing raw materials.
Chukwudozie also underscored the necessity for expanding funding opportunities for manufacturers, stating that “access to information and affordable funding are central to productivity and industrialization in Nigeria.”
Dr. Charles Odii, the Director-General of SMEDAN, mentioned that the agency has initiated interventions to facilitate local manufacturers’ access to soft loans.