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The President, Manufacturers Association of Nigeria (MAN), Dr. Frank Jacobs, has raised alarm, saying if government fails to introduce policies and initiatives to control the economy the current economic situation, and recession will go beyond next year.
According to him, government needed to take steps to shore up the manufacturing sector by ensuring that the concessionary Forex allocation to the sector was effectively implemented.
He said that interest rates needed to be reduced to not more than five per cent and more development banks should be established to provide long-term funding for manufacturers to encourage more investment.
Jacobs was of the view that “One cannot say for sure that the recession will be over in 2017.
“Manufacturers are now patronising the parallel market for their Forex requirements but this is at a very high exchange rate.
“Unfortunately, after production, consumers may not be able to purchase such products, which may lead to the closure of some of the factories.
“I have not seen anything to suggest that, at least not from the perspectives of the manufacturing sector.”
He said that from all indications, “it appears that the Forex situation in the country had not improved”.
Currently, the leader of Nigerian manufacturers’ was of the view that there seemed to be no respite in sight, considering the price of crude oil in the international market and the activities of militants in the Niger Delta.
To him, the development of support infrastructure should be fast attacked to facilitate the country’s industrialisation effort, adding that this would enhance the economic situation of the county.
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