As Nigeria celebrates its 64th Independence Day, the managing director of Coleman Wires and Cables Industries Limited, Mr. George Onafowokan, has stated that the manufacturing sector has continued to face challenges despite policy initiatives.
This is as Onafowokan called attention to policy inconsistencies and the rising cost of doing business.
In his analysis, Onafowokan commended the initiatives led by the chairman, Presidential Fiscal policy and Tax Reforms Committee, Taiwo Oyedele, but expressed scepticism about how effectively they translate into tangible benefits for manufacturers, adding that, ' the reality of doing business in Nigeria is tough.
We have fantastic initiatives, but manufacturers are not seeing the instant benefits.'
He also criticised the Nigerian Customs Service for its role in fiscal policy, noting that,
'Customs has become more of a revenue generator rather than focusing on its primary role of physical balancing.'
Onafowokan argued that this revenue-focused approach by the Customs Service has become a major obstacle for manufacturers, saying, "Customs should be under the Ministry of Finance, not the Central Bank of Nigeria (CBN).
It has become an IGR (Internally Generated Revenue) institution, and this is harming the manufacturing sector.
He also highlighted the inconsistency in government policies, which he believes is hindering the growth and productivity of the manufacturing industry.
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"We have inconsistent policies that are not driving manufacturing processes. We are killing the industry that generates employment, which is key to the nation's growth," he stated.
Focusing on the broader economic landscape, Onafowokan emphasised that, while the government has made strides in easing the process of setting up businesses, the high cost of running those businesses remains a critical issue.
Reflecting on the history of Nigeria's business landscape, Onafowokan noted that the country's earlier post-independence years saw substantial growth in industry, but that momentum was lost during the economic downturn of the 1980s and 1990s.
He credited the return of democracy for some improvements, particularly with incentives from the CBN and the Bank of Industry (BOI), saying the country is still struggling to sustain long-term growth.
"There is no strategic vision that successive governments follow, and that has been detrimental to the industry. Policies are either reversed or abandoned entirely when a new government comes into power. For the industry to grow, we need consistency and sustainability of policies that span across decades," he stressed.
Onafowokan called for greater government incentives, particularly larger funds for the manufacturing sector, suggesting that these funds should be managed by BOI, not CBN.
He added the country must remain optimistic but stressed the need for decisive action from the government. "Government must recognize the industry as a key driver for the nation. Until then, the challenges manufacturers face will continue to weigh down the potential for growth," he stated.
