The Centre for the Promotion of Private Enterprise [CPPE] has tasked the federal government on the need to arrest the deindustrialization of Nigerian economy by ensuring that local industries are protected from liberal trade policies.
In a statement, the CPPE commended the federal government's application of fiscal policy measures to boost productivity of the Nigerian pharmaceutical manufacturing industries.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, who argued in the press statement that the country's economy could not afford to submit to a regime of complete trade liberalisation in the light of the challenges faced by domestic manufacturers.
Yusuf said: "Fiscal policy measures have proven to be more impactful on real sector performance than monetary policy.
"The real sector of the economy deserves to be effectively protected and incentivised to improve production and ensure sustainability investments in that space. The Nigeria economy cannot afford to submit to a regime of complete trade liberalisation in the light of the challenges faced by domestic manufacturers.
"We need to stem the tide of deindustrialisation of the Nigerian economy, the exit of foreign direct investors and the rising mortality rate of domestic industries. We believe that stepping up fiscal policy interventions would facilitate the realisation of this objective. But we must be ready to trade off some revenue in the short term.
"The economy would be better off in the medium to long term, with regard to the growth in domestic production, less import dependence, heightened prospects of disinflation, higher job creation and better economic resilience, "he said.
According to him, "the recent Executive Order removing import duties, VAT, excise duty on pharmaceutical raw materials, intermediate products, medical diagnostic equipment and machineries," was a commendable development.
He argued that these fiscal policy measures would boost domestic production of pharmaceutical products, reduce the cost of medications, improve access to healthcare and impact positively on the well-being of citizens, adding that it would also revitalise our pharmaceutical industries and create more jobs."
