The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to remove the 7.5 per cent Value Added Tax on diesel until the international supply system normalises.
It noted that the economy had been affected by several negative factors, including the ongoing Russia-Ukraine war and urged the government to convene a stakeholders’ meeting to find a solution.
The President, MAN, Mr Mansur Ahmed, said this at its 37th Annual General Meeting (AGM) on Thursday in Abeokuta.
Ahmed was represented at the event by the association’s Director-General, Mr Segun Ajayi-Kadir.
The theme of the meeting is: “Navigating Nigeria’s Economic Realities, A Manufacturer’s Dilemma: Building and Sustaining Factories Profitability.”
He said that the manufacturing sector has suffered major setbacks which include the high cost of diesel, petroleum products, and increasing foreign exchange rate.
He appealed to the government to remove the 7.5 per cent Value Added Tax on diesel until the international supply system normalised.
“We believe that this will help to identify viable options to ameliorate the impact of disruption, agree in ways to assuage other pain points in the business environment.
“It will also activate innovative solutions to familiar and emerging macroeconomic and infrastructure challenges and generally point the direction for resilience in the economic system,” he said.
Ahmed, however, commended Governor Dapo Abiodun, for his initiative in creating the Ogun State Land Administration and Revenue System (OLARMS).
OLARMS is an online portal that allows businesses and organisations to fulfil their obligation.
He also thanked the governor for the current reconstruction works on various roads within the state.
Ahmed urged him to harken to the call by businesses for appropriate incentives and infrastructure that would ameliorate constraints and encourage new investors.
He said that the governor should harmonise taxes between the state and local government.
“We request that you carry out a system check on regulatory functions of certain agencies and organs of government that negatively impact manufacturing and discourage would-be investors.
“We also like you to intensify efforts on the harmonisation of taxes, especially local government and road-related levies to aid the ease of compliance by MAN members and possible exploitation and harassment by government officials.
“Also, the harmonisation of national and state environmental laws to reduce the cost of compliance on our members,” he added.
In his address, Abiodun advised manufacturers to engage Micro, Small and Medium Enterprises to mitigate challenges bedevilling the sector.
He said that the state was committed to a public-private sector partnership and his administration would make Ogun, “a truly investor’s destination of the first choice, not only in Nigeria but in Sub-Saharan Africa”.
Earlier in his welcome address, the Chairman, MAN Ogun State, Dr Seleem Adegunwa, decried the challenges that manufacturers in the state were facing.
Adegunwa said that inflation and an increase in some raw materials had stretched the production cost of members. who used them as raw materials.