There has been a lot of public outcry about the perceived abuse of Federal Government of Nigeria import waivers and exemptions especially in regard to the N250 million bullet-proof car scandal involving the Minister of Aviation, Mrs. Stella Oduah.
However, the Manufacturers Association of Nigeria (MAN) which is meant to be the primary beneficiary of this policy has come out in its defence claiming to have benefited a lot of from it. Please read their statement below:
|Manufacturers in |
Waivers & Exemptions: Government incentives are boosting the economy and creating jobs
a key player in the Organized Private Sector (OPS), the Manufacturers
Association of Nigeria (MAN) will want to draw the attention of the
Nigerian public to the impact of the Federal Government’s policy on
incentives on reviving the moribund manufacturing sector during the
tenure of this administration.
The government’s incentive
policy, which is designed to encourage industrialization, is working and
is today benefitting a large segment of the economy as it is
encouraging new investment and job creation.
policy has been in place through several administrations and the present
government is not the first to grant waivers/incentives. Indeed the
President and his Economic Management Team deserve credit for
streamlining the policy to leverage it for attracting investment in the
An important reform in the incentive policy,
as sought by MAN, was to broad base the incentives to a whole sector
rather than issuing discretionary waivers for individual firms. This has
brought transparency in the policy and created a level playing field
for all players.
There is a clear evidence of the positive
impact of the sector based incentives. Incentives and concessions given
to the Cement industry have contributed to the phenomenal increase in
national cement production from less than 2 MN tons in 2002 to over 20
MN tons in 2013. As a result, from being a net importer, Nigeria has
become a net exporter of cement. This was achieved in less than a decade
thanks to the enabling environment fostered by government policies.
Special intervention funds of the Central Bank of Nigeria (CBN)
disbursed through the Bank of Industry (BOI) have also helped revive a
good number of ailing industries and SMEs.
Incentives are also
helping to boost trade and investment in the non-oil sector and
generating employment in agro-allied industries.
needed to generate investment in the productive sector – manufacturing
and agriculture. Waiver of customs duty and VAT on import of plant and
machinery is required to make our industries competitive. Duty and VAT
exemption on equipment used in gas production have contributed to
reduction in gas flaring and growth in gas-to-power initiative aimed at
boosting power supply.
Cost of doing business in Nigeria
remains high. Due to infrastructural disadvantages, companies have to
generate captive power and build surrounding facilities. Therefore,
incentives and waivers are required not only to attract investment but
to also compensate for the public infrastructure-deficit.
developing countries give incentives to attract investment in priority
sectors where they have a comparative advantage and Nigeria cannot be an
We want to affirm our support for the
implementation of the recently launched Nigerian Industrial Revolution
Plan and well-meaning Nigerian should be prepared to make their own
positive contributions to ensuring the success of this programme.
Do you agree with the MAN on this? Drop a comment to let me know.
Post a Comment