Ongoing economic policies will revive manufacturing sector — Shet

The Vice President, Kashim Shettima, has restated that the economic policies being implemented by the current administration will resuscitate economic activities in the manufacturing and engineering sectors.

Shettima also pledged commitment to unleashing the country's full economic potential by implementing policies focused on job creation, access to capital for small and large businesses, inclusiveness and the rule of law to boost the fight against hunger, poverty, and corruption across the country.

The Vice President stated this during his address at the opening ceremony of the 2023 National Engineering Conference, Exhibition and Annual General Meeting held on Tuesday, in Abuja.

The conference was themed, “Re-engineering the Manufacturing Sector for Competitiveness and Enhanced Economic Growth.”

The PUNCH reports that the manufacturing sector has witnessed a significant reduction in its contribution to the nation's Gross Domestic Product.

The National Bureau of Statistics in its latest report said the real contribution of the manufacturing sector to Nigeria's GDP dropped to 8.42 percent in the third quarter of 2023, lower to 8.62 percent contribution in the second quarter and 8.59 percent in the corresponding period of 2022.

In his address, the Vice President acknowledged that infrastructure development remains the backbone of any successful manufacturing industry and promised to partner with society on favourable legislations and policies that will accelerate the growth of the manufacturing sector.

He said, “We are very much aware of the problems and challenges that are almost in your minds. Access to low-cost capital. Challenges of multiple taxation, issues of infrastructure deficits, foreign exchange, and export obstacles amongst others.

“I am happy to let you know that we are tackling with unprecedented boldness and decisiveness each and every issue. In the area of taxation, Our goal is to increase Nigeria's tax revenues while also reducing the burden on individuals and businesses. It might sound like a contradiction, but it is not. By streamlining the number of taxes, introducing greater efficiency and breaking the loopholes. We can and will deliver less burdensome tax burdens to businesses and employers of labour.

“We have abolished an unyielding and much abused foreign exchange rates regime, setting the foundation for transparent price coverage and all of the other elements required to attract substantial inflows into a properly run official market.

“In addition to this, the petrol subsidy reforms have led to dramatic increases in some national revenues, which means the states have more resources to invest in infrastructure and other critical areas. Yes, we are mindful of hardships being faced by many including manufacturers. These difficult times are indeed temporary, but the benefits will be permanent.

“In the area of access to capital, the President directed the creation of a new single-digit interest rate fund to provide N75 billion to support one manufacturing enterprise among other targeted financial interventions. If you look closely at the supplementary budget, which Mr. President assented to earlier this month, you will find that it was designed primarily to support targeted interventions and initiatives that will cushion the effects of the temporary hardships caused by our much-needed economic reforms. ”

The President of the Nigerian Society of Engineers, Tasiu Gidari-Wudil, in his remarks, said the theme of the conference was informed by the continuing decline of activities in the manufacturing sector of Nigeria's economy.

“The saddest trajectory of Nigeria is the gigantic Ajaokuta Steel Manufacturing Company on which manufacturing activities revolved, never rolled out one length of steel since it was built.

“Recognising that transforming the manufacturing sector is critical for driving economic growth the stimulating innovation.

“And providing the roadmap for developing a skilled workforce the society went into alliance with the United Nations Development Industrial Development Organization, and the Manufacturing Association of Nigeria, to chart out new plans and solutions,” Gidari-Wudil said.

He was optimistic that by the end of the conference, productive decisions would be made on how the Ajaokuta Steel Manufacturing Company, in particular, would be revived and the whole manufacturing sector in general rekindled for performance.