Lagos, Aug. 1, 2023: The Manufacturers Association of Nigeria (MAN) has commended President Bola Tinubu for the proposed credit interventions to revitalise the manufacturing sector and Micro, Small and Medium Enterprises (MSME) and mitigate the impact of fuel subsidy removal.
Director-General, MAN, Mr Segun Ajayi-Kadir, said on Monday night in Lagos in reaction to the President’s broadcast.
President Tinubu unveiled plans to provide a N75 billion credit facility between July 2023 and March 2024 to 75 enterprises to strengthen the manufacturing sector.
He added that his administration would energise MSMEs and the informal sector with N125 billion among other schemes to engender sustainable economic growth.
Ajayi-Kadir noted that the assurances in the President’s broadcast represented part of the follow up measures manufacturers had appealed for and was more beneficial than palliatives that would only give nominal relief.
He lauded the Federal Government’s move to work in a coordinated manner with local and state governments to deliver interventions that would cushion the effect of the hardship across the socio-economic brackets.
The MAN DG said the recently signed four executive orders had set the stage for the much sought-after relief for the manufacturing sector.
According to him, it had become possible to return to their business projections and to look toward a possible profitable production in the affected sectors.
Ajayi-Kadir said the promise that 75 manufacturing enterprises would access N1billion credit at 9 per cent interest rate per annum and working capital was commendable.
He noted that the allocation of N125 billion to energise the MSME segment would give fillip to their businesses and help overcome the paucity of funds occasioned by low capacity utilisation and unprecedented low sales in recent times.
“It is a good start to begin to address the dearth of loanable funds in the face of rising lending rate occasioned by the continued increase in the MPR by the Central Bank of Nigeria (CBN).
“It is however very important and critical that the vehicles for the delivery of these loans should be carefully selected and the implementation diligently monitored.
“The Bank of Industry (BOI) has shown excellent performance as an appropriate transaction structure for such facilities.
It is equally important to ensure that the promised 3000 units of 20-seater buses be procured from indigenous automobile Industries.
“This is a golden opportunity for the Federal Government to demonstrate unfailing commitment to the implementation of the subsisting Executive Order 003, which prioritises the patronage of made in Nigeria products,” he said.