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Tag: Manufacturers Association of Nigeria (MAN)

  • MAN Calls on Governor Sanwo-Olu to Address Industrial Shutdown in Lagos State

    MAN Calls on Governor Sanwo-Olu to Address Industrial Shutdown in Lagos State

    The Manufacturers Association of Nigeria (MAN) has called on the Lagos State Governor, Mr. Babajide Sanwo-Olu, to urgently intervene in the recent closure of several factories by the Lagos State Water Regulatory Commission (LASWARCO). 

    MAN described the action as unjust, ill-timed, and detrimental to the manufacturing sector.

    According to a statement issued by the association, LASWARCO sealed factories over allegations of non-payment of exorbitant water abstraction fees, which reportedly exceed N100 million per company. 

    MAN criticized the move, stating that it undermines ongoing negotiations and agreements reached between the association and LASWARCO, including plans for a Memorandum of Understanding (MoU) set to commence in January 2025.

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    “This action is both inappropriate and disruptive,” said Segun Ajayi-Kadir, Director General of MAN.

     “It comes at a time when manufacturers are already grappling with a harsh economic environment characterized by unsold inventory, high borrowing costs, and rising energy expenses.”

    MAN noted that the closure of these factories poses a significant threat to the state’s economy, including potential job losses and a decline in investor confidence. The association highlighted that manufacturers nationwide are already burdened with over N1.2 billion in unsold goods, borrowing costs of over 30%, a 250% increase in energy expenses, and multiple taxes and levies from various tiers of government. 

    The association further warned that the imposition of excessive water abstraction fees by LASWARCO could set a troubling precedent for other states, exacerbating the challenges faced by private businesses.

    MAN has urged Governor Sanwo-Olu to direct the reopening of the affected factories to allow for a logical resolution of the ongoing discussions. 

    The association emphasized the importance of concluding the MoU to establish a fair and sustainable framework for addressing water-related fees.

    “We appeal to the Governor to act decisively to protect the manufacturing sector, safeguard jobs, and promote a business-friendly regulatory environment,” Ajayi-Kadir added.

    As manufacturers await action from the Governor, MAN expressed hope for a swift resolution to prevent further disruptions and safeguard the livelihoods of thousands of workers.

  • Manufacturers Unsold Inventories Hits N272bn In 6 months –MAN

    The Manufacturers Association of Nigeria (MAN) says weakened purchasing power of Nigerians in the first half of 2023 pushed up the inventory of unsold finished products to N271.96 billion.

    MAN in its half year report on ‘Half Yearly Review of the Economy (January – June 2023) said the figure is N48.88 billion representing a 45.4 per cent growth compared to N187.08 billion recorded during the same period in 2022.

    MAN’s Director General Segun Ajayi-Kadir, noted that the decline in the purchasing power of Nigerians is due to diminishing real household income as a result of inflationary pressures.

    The National Bureau of Statistics in its inflation report for August stated that headline inflation jumped to 25.80 per cent. The figure is 1.72% points higher than the 24.08% reported in July. Analysts say the scarcity of the naira and the petrol subsidy removal further aggravated the situation.

    “Consequently, both businesses and foreign investors are growing increasingly cautious about committing capital, thereby impeding economic growth and the prospects for recovery.

    “The collective impact of these factors is an upsurge in inflationary pressures, which inflates production costs, diminishes consumers’ purchasing power, and exerts a significant influence on manufacturers,” remarked Ajayi-Kadir.