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MAN Seeks Govt's Intervention In Hurdles To Investment Growth

Published 3 weeks ago3 minute read

The Manufacturers Association of Nigeria (MAN) has called on the government to tackle the many obstacles hindering manufacturing growth and investments in the country.

Specifically, the Director-General of MAN, Mr. Segun AjayiKadir, hinted that high tariffs and levies, including cost of operations at the country’s ports were some of the debilitating factors.

Ajayi-Kadir said: “As a private sector advocacy group with the mandate to promote the business community’s interests, MAN shall continue to engage relevant government agencies, the media, and other interest groups, where and when necessary, on actionable recommendations for a thriving business community in the country.”

He stated: “For instance, the maritime and freight forwarding sector operators have raised significant concerns about the cost of operations at the ports and how this hinders trade facilitation and increases burdens on businesses.

“In the last quarter, stakeholders faced two significant cost burdens: a four per cent levy introduced by the Nigeria Customs Service and a 15 per cent hike in service charges by the Nigerian Ports Authority (NPA).

“While the Customs levy has since been suspended, NPA’s increase remains in place. These actions have triggered a ripple effect—terminal operators, shipping companies, and other service providers have adjusted their prices upwards, compounding the financial strain on importers, exporters, and the broader business community.

“Another major concern is the manipulation of the electronic truck call-up system (Eto), where it is alleged that higher-paying trucks are given priority, thereby increasing haulage costs and creating unfair competition.

“Additionally, the recent 15 per cent tariff increase by the Nigerian Ports Authority (NPA), without a phased implementation strategy, is expected to exacerbate the financial burden on importers and manufacturers.

“We demand a more structured, phased rollout and a full audit of tariff components— especially those being charged in U.S. dollars, which increases forex exposure for local businesses.

“Equally critical is the urgent need to deploy more containers and cargo scanners at the ports. These should be managed by the Terminal Operators and integrated into real-time offloading procedures.

This strategy will significantly reduce cargo dwell time, lower demurrage costs, and enhance the vessel turnaround. “This will lead to increased cargo throughput, quicker goods clearance, and higher government revenue.

“Most importantly, only containers flagged during scanning would undergo a physical examination, reducing human interference and curbing corruption.

“It will also diminish the need for the current excessive physical presence of multiple government agencies—an outdated practice not befitting a 21st Century port system.”

However, Ajayi-Kadir noted,l: “We strongly advocate for the expedited implementation of the National Single Window Project, which, if executed effectively, promises to streamline port operations, enhance revenue collection, and facilitate the ease of doing business across the port value chain.

“Furthermore, we call on the government to continue supporting Terminal Operators in attracting foreign direct investment for critical infrastructure upgrades.

Efforts to enhance rail connectivity to the ports must also be sustained, as this will reduce over-reliance on road haulage, lower logistics costs, and improve cargo evacuation efficiency.

“it is imperative that government agencies refocus their mandates from revenue collection to robust regulation and facilitation.

“An overly aggressive revenue-driven posture is detrimental to stakeholders, especially SMEs, importers, and exporters, often pushing businesses to the brink of closure.”

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New Telegraph
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