Calabar: The Manufacturers Association of Nigeria (MAN) has expressed optimism over the recent stability of the Naira, citing it as a positive shift for the country’s industrial sector. Speaking to reporters, Dr. Adoga Inalegwu,
Dr Adoga Inalegwu, Chairman of the Cross River and Akwa Ibom chapter of the association, remarked while interacting with reporters in Calabar on Monday.
Inalegwu, who is also the Chief Executive Officer (CEO) of Champion Breweries, Uyo, said they were not just happy with the stability but also with the availability of dollars as the companies were not struggling to source them.
The chairman said that President Bola Tinubu’s policies, though tough, were necessary because the nation could not continue living in deception and using palliative measures that never solved its problems.
“Some people have complained about his tax reform, but I believe that the reform has its pros and cons, one of which is the shrinking of multiple taxation issues and improving the disposable incomes of Nigerians.
“This has reduced the taxation burden for low-income earners and freed up disposable income in the hands of Nigerians.
“This means they can buy more, which favours my industry and others that produce goods considered to be non-essential in classification.
According to him, the negative aspect of the new tax law is the increase in Value Added Tax (VAT) by 2.5 per cent, which is significant for manufacturers.
Speaking further, Inalegwu highlighted power as a significant challenge for manufacturers in Nigeria, stating that 40 per cent of the cost in the manufacturing sector is attributed to power alone.
He added that where there was no stable source of electricity, manufacturing and production became not only challenging but very expensive.
He stated that other challenges included a lack of experts to fabricate and repair equipment, alleging that some engineers produced by Nigerian universities lacked the requisite capabilities, which caused some companies to rely on expensive expatriates.