The Manufacturers Association of Nigeria (MAN) has disclosed that the rising inflation rate for January alongside perennially high-interest rates and scarce/high rate of forex has compounded the downturn of the manufacturing sector in Nigeria.
This was revealed by Mr Segun Ajayi-Kadir, Director-General, MAN, in an interview with NAN on Tuesday in Lagos.
“The manufacturing sector has been struggling, particularly in the past four quarters, from the combined effect of COVID-19, deteriorating infrastructure, high regulatory compliance cost and tax obligations.
“So, rising and high inflation, perennially high-interest rates and scarce/high rate of forex has compounded the downturn in the sector in terms of the envisaged recovery.
“The concerted efforts of government to recover the economy will have to address the aforementioned challenges,” he said.
Ajayi-Kadir urged the FG to partner with MAN and other associations to accelerate the success in the resource-based industrialisation initiative of the Association.
“Government should assist manufacturing productivity with credit at competitive price.
“This could be in the form of concessions and enhancing existing special credit windows or creating additional ones for this important sector of Nigerian economy,” he said.
What you should know
- Nairametrics reported that Nigeria’s consumer price index, (CPI) which measures inflation increased by 16.47% (year-on-year) in January 2021. This is 0.71% points higher than the rate recorded in December 2020 (15.75%).