Why manufacturing sector’s contribution to GDP is still low –MAN
The Manufacturers Association of Nigeria (MAN) says the sector’s contribution to Nigeria’s Gross Domestic Product is still low because of the “multitude of operational, structural and policies induced challenges” facing the industry. The President of the Association, Francis Meshioye, expressed concern that the sector’s contribution hovers around 8 percent, describing it as very low. He […]
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The Manufacturers Association of Nigeria (MAN) says the sector’s contribution to Nigeria’s Gross Domestic Product is still low because of the “multitude of operational, structural and policies induced challenges” facing the industry.
The President of the Association, Francis Meshioye, expressed concern that the sector’s contribution hovers around 8 percent, describing it as very low.
He spoke in Lagos at the 4th Adeola Odutola Lecture and Presidential Luncheon to round off the activities marking the 52nd Annual General Meeting (AGM) of MAN.
The MAN President identified interest rate, an unfriendly operating environment, multiple regulations, exchange rate, insecurity and high-cost energy as some of the challenges hampering the sector’s growth.
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He said globally manufacturing is the major driver of the economy through creation of jobs and fostering innovations.
“In Nigeria, the important sector, manufacturing sector has not realized its full potentials due to multitude of operational, structural and policies induced challenges with its contribution to the GDP hovering around 8 percent which is very low,” he submitted.
Lamenting that high energy costs and the recent 250 percent traffic increase, he said “It is unfortunate that the Distribution companies (DisCos) persistently disconnected manufacturing facilities from the national electricity grid, despite payment of current electricity charges on existing tariff, and against court injunction prohibiting them.