MAN Export Group Wants Quick Fixing Of Critical Infrastructure | Independent Newspapers Limited
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MAN Export Group Wants Quick Fixing Of Critical Infrastructure

Posted: Apr 5, 2016 at 3:00 am   /   by   /   comments (0)



The Manufacturers’ Association of Nigeria Export Group on Monday appealed for quick fixing of critical infrastructure to enable the manufacturing sector to benefit from the various America and European trade agreements.

Mr Segun Oyelola, the group’s president, said in Lagos that countries like Ghana and South Africa had used the agreements to their advantage.

Oyelola restated that there was the European Partnership Agreement (EPA) and the African Growth Opportunity Act (AGOA), among others, waiting to be explored by farmers and the manufacturing sector.

He said that aside funding, lack of basic amenities like regular power supply, good road network, reliable banking/internet services, outsourcing and supply chain challenges had slowed down the economy.

“There are so many policies and plans that have lingered on for years, but we dare not go into them because of poor infrastructure and also lack of protection.

“Examples are the EPA, AGOA and others that have been there for long but we did not explore the opportunities.

“But how can we go into them without proper infrastructure in place.

“Those that went into AGOA have not benefitted because our goods are being rejected because of poor quality due to infrastructure deficit,” he said.

The Economic Partnership Agreements like AGOA are trade between the EU and African, Caribbean and Pacific countries (ACP) aimed at promoting ACP-EU trade.

It is to sustain development and poverty reduction in partner countries.

Trade with ACP countries represents more than 5 percent of EU imports and exports. The EU is the main destination for agricultural and transformed goods from ACP partners.

The agreement was signed in Cotonou in 2008.

Besides, Oyelola said the dumping of goods from other climes had not helped the sector.

According to him, most manufacturers spend a larger part of their profit on production at a time when the purchasing power is low.

Oyelola appealed to the government to adjust the Export Expansion Grant (EEG) in favour of exporters to save the manufacturing sector.

He said that the grant would boost the non-oil exports from its current low rate of about 12.9 percent.

“At the moment, lack of infrastructure is our greatest problem, and if we can quickly solve it, Nigeria can raise its share of non-oil export revenues to up to 3 billion dollars annually.

“It is a loss to us, if as the giant of Africa, other countries like China, Turkey and European countries take over the production of manufactured goods in Nigeria and other ECOWAS countries,” he said.

President Muhammadu Buhari had in February promised to build 16 more major roads across the country and generate up to 10,000 megawatts of electricity by 2019.