Expressing Concerns Over Government Policy
Lekan Adewoye, the Vice Chairman of Basic Metal, Iron, and Steel Products sector of the Manufacturers Association of Nigeria (MAN), has raised red flags regarding a recent government decision.
He believes that the policy change could have dire consequences for the nation, including job losses, insecurity, and economic instability.
Adewoye’s Critique on TVC Business Programme
Adewoye made his reservations about the new policy clear while participating in a TVC Business Programme.
He did not mince words when condemning the decision, stating that lifting the import ban could potentially harm numerous domestic industries.
Strong Opposition to the Central Bank’s Move
The industrialist vehemently disagreed with the Central Bank’s decision to reverse the importation ban.
Adewoye highlighted the surprise that manufacturers felt, considering that the apex bank had only restricted the importation of certain items in 2015.
He stressed that for products that can be manufactured within Nigeria, the government should encourage domestic production, not reverse course.
A Blow to the Struggling Manufacturing Industry
Adewoye expressed deep concerns about the impact of the new directive on the already fragile manufacturing sector.
He emphasized that the policy shift would exacerbate the industry’s challenges and possibly lead to the closure of manufacturing businesses.
The Problem of Policy Inconsistency
One of the key issues at hand, according to Adewoye, is the inconsistency in government policies. He mentioned that members of MAN who had invested in backward integration might now regret their investments.
The fear is that anyone with access to foreign exchange will claim to be an importer, pressuring honest manufacturers to shut down their operations and contributing to rising unemployment.
Competitive Challenges in the Manufacturing Sector
Adewoye also highlighted the competitive landscape within the manufacturing sector.
He noted that Nigerian manufacturers do not possess a significant competitive advantage over their counterparts in other developing countries.
The removal of the limited incentives provided by the government only compounds the industry’s difficulties.
The Implications of the Central Bank’s Directive
The directive from the Central Bank of Nigeria, as critiqued by Adewoye, could have far-reaching consequences for the manufacturing sector and the nation’s economic stability.
The concerns raised by the Vice Chairman of Basic Metal Sector highlight the need for a more coherent and consistent approach to economic policies.