CALABAR — The Manufacturers Association of Nigeria (MAN) has expressed cautious support for President Bola Tinubu’s economic reforms, acknowledging the hardship they bring while stressing that the policies are bold steps needed to rescue Nigeria’s struggling economy.
Chairman of MAN in Cross River and Akwa Ibom States, Dr. Adoga Inalegwu, made the remarks in Calabar over the weekend after a familiarization visit to member companies.
“I think President Bola Tinubu’s policies are necessary and tough decisions that Nigeria needs presently,” Inalegwu said. “If we keep deceiving ourselves that everything is fine and keep palliating, we will never solve our problems. So, he has made very bold moves.”
He highlighted tax reforms as one of the positives for manufacturers, noting that although controversial, they reduce the burden of multiple taxes. “One of the fundamental advantages for manufacturers is shrinking the basket of multiple tax issues that we face. That for me is important. And he has also tried to improve disposable income for the population,” he added.
On the foreign exchange situation, the MAN boss admitted that while manufacturers remain unsatisfied with the high rate of over ₦1,500 per dollar, the stability and availability of forex have brought relief compared to the struggles of 2023.
“We are not satisfied with the exchange rate, but we are happy with the stability. We no longer struggle to source for forex like before. Last year, I suffered big time,” he noted.
Despite the relative stability, Inalegwu said manufacturers still face higher import costs for raw materials, doubling expenses in many cases. He stressed, however, that member companies have learned to adapt and innovate in order to survive.
“When times are difficult, you evolve strategies to survive and even thrive. Nigerian manufacturers can still be resilient, ambitious, and forward-thinking even when things are not rosy,” he said.
The MAN chief, however, expressed concern over the recent 2.5 percent increase in Value Added Tax (VAT), warning that the impact on firms running into billions of naira in expenses is “significant enough” to hurt revenues.
“On the VAT increase, I am not happy. The magnitude of that increase is really significant and will definitely impact revenues,” he cautioned.
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