Manufacturers Association of Nigeria (MAN) has pushed for practical, home-focused measures to fight inflation, including optimizing the Naira-for-crude policy, accelerating CNG adoption for transport fleets, and fixing power infrastructure.
The association the government should adopt the measures instead of reopening borders to imported premium motor spirit (petrol).
Director-general of MAN, Segun Ajayi-Kadir stated this in a press release titled 'Fuel Importation Prescription as a Recipe for Deindustrialisation and National Economic Retrogression'.
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He highlighted the importance of addressing supply-side constraints for manufacturers, such as the four percent FOB levy and the need for access to single-digit credit, which are essential to reducing costs more effectively than competing for foreign exchange for imported fuel.
Kadir conveyed that the recent World Bank Nigeria Development Update (NDU) has provided important insights into national energy security, especially given the current global economic climate.
However, he reiterated MAN's concerns regarding the suggestion to reinstate petrol import licenses as a long-term strategy to manage inflation.
He argued that this approach could undermine Nigeria's industrialization goals and limit the country's economic potential.
Focusing on sustainable, domestic solutions, Kadir stated, "rather than relying on short-sighted strategies like fuel imports, we should prioritize initiatives that enhance our local economy and provide long-term benefits to consumers."
He noted that the implementation of selling crude oil in naira to local refineries represents a significant step forward, but optimizing its execution is critical.
To further this agenda, he called "for greater transparency in domestic pricing and ensuring that local refineries receive consistent crude supplies without bureaucratic delays. This will help maximize the economic benefits for both consumers and the industrial sector."
Kadir urged the government to expedite the Presidential Compressed Natural Gas (CNG) Initiative by offering substantial subsidies for converting commercial and industrial transport fleets to CNG.
He argued that this shift would significantly reduce logistics costs, thereby helping to alleviate inflation across consumer goods.
He added, "instead of expanding trade deficits through petroleum imports, we should focus on eliminating supply-side bottlenecks for manufacturers. This involves refining the National Single Window (NSW) platform, easing the FOB levy, and facilitating access to low-interest credit for manufacturers to enhance production capacity and lower unit costs."
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Kadir also pointed out that reliance on liquid fuels for industrial production contributes significantly to the energy crisis.
He advocated for investments in the national grid and incentives for renewable power solutions within industrial clusters, enabling a more sustainable energy landscape.
He stressed that "fostering a competitive retail market for petrol should not mean resorting to fuel imports. Relying on imports could jeopardize domestic refining efforts, disrupt the foreign exchange market, deter investment in local refining capacities, and undermine the positive developments seen since the establishment of local refineries such as Dangote Refinery.
"By embracing these constructive proposals, Nigeria can work toward a more resilient and self-sufficient energy economy."
