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The Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, stated that numerous manufacturers in the country allocate a larger portion of their funds towards securing their assets compared to their tax payments to the government.
Ajayi-Kadir made this statement on Tuesday while appearing as a guest on the Sunrise Daily programme on Channels Television.
He stated that the expenses for security and energy are still contributing to the operational costs of manufacturers, resulting in higher prices for goods in the country.
He expressed regret that the insecurity situation in the country has led to a significant number of MAN members in the insurgency-affected North-East region ceasing their operations.
He mentioned, "Insecurity is a major obstacle. We have lost approximately 56 to 60 percent of our members in the North-East due to insecurity, resulting in production halts. Insecurity is discouraging for manufacturing activities. Some of us spend more on security than we do on taxes because it is an ongoing expense."
Regarding the increase in electricity tariffs, the MAN DG emphasized that the rising energy costs are also adding to the production expenses of manufacturers, leading to higher prices for goods.
He acknowledged that while "power is not a charity," there needs to be consultation between stakeholders such as manufacturers and the Nigerian Electricity Regulatory Commission (NERC) before any electricity tariff adjustments.
He mentioned that the current conditions have been challenging, affecting both businesses and individuals. He emphasized the need for the Bola Tinubu administration to collaborate with stakeholders in order to address the challenges posed by its economic reforms and policies.
"We must continue collaborating with the government to tackle the issues at hand. It's essential to have frank discussions about certain government policies.
We cannot and should not have a one-sided relationship. In our economy, the private sector holds significant influence, and the government has a responsibility to ensure the welfare of the people. Therefore, there needs to be a harmonious partnership for us to move forward," he stated.
