MAN Seeks Equalisation Fund For Factories In Disadvantaged Zones | Independent Newspapers Limited
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MAN Seeks Equalisation Fund For Factories In Disadvantaged Zones

Posted: Sep 22, 2015 at 12:05 am   /   by   /   comments (0)

Stories by Phillip Oladunjoye


The President of the Manufacturers’ Association of Nigeria (MAN), Dr. Frank Jacobs, has called on the Federal Government to urgently address the seeming unbalance in the cost of doing business in certain locations in the country.

The MAN President made the call when the association paid a factory visit to PAN Nigeria, the manufacturers of Peugeot brand of cars in Kaduna recently. “There is a need for government to create some kind of equalisation or palliatives that will moderate the costs of logistics and infrastructure deficiency to companies in the North,” he said.

He describe a situation where companies located in the less advantaged areas pay exorbitant cost to transport their raw materials from the country’s sea ports as unacceptable, warning that this ugly trend is capable of closing down the remaining few industries operating in the North if not quickly addressed.

He said the lack of access to gas is also another major deficiency threatening the survival and growth of industrial and manufacturing development in the North.

“The costs of logistics and bringing raw materials from sea ports in the southern part of the country to the North are incredible. This must be addressed otherwise most of them will go out of business,” Dr. Jacobs said, expressing the optimism that the provision of equalisation fund or some form of incentives to the companies operating from the northern wing of the country would also go a long way in preventing migration of youths in search of job opportunities from North to South.

He also called on the government to implement in full, the National Automotive Policy to boost productivity of local industries such as PAN, which will also put smiles on the faces of many unemployed youths by giving them job opportunities.

Jacobs, however, expressed amazement at the level of capital and human resources in PAN, saying the resources on ground is comparable with that of the developed economies in the world.

In his remarks, the Managing Director, PAN Nigeria Limited, Mr. Ibrahim Boyi, thanked the MAN team for visiting the factory. He intimated the team on the challenges and feat achieved by his management in their effort to turn around the company.

Boyi also informed the team that PAN has signed an agreement with its Technical Partner, the AP France to commence the CKD production of Peugeot 301 model, while also clarifying that PAN was the only auto industry in Nigeria that has achieved the enviable feat.