Again, FG assures on protecting local manufacturers

The Federal Government has pledged to continue to push for a favourable deal on the proposed Economic Partnership Agreements (EPAs) to ensure that Nigeria does not enter an arrangement that would adversely affect the growth of the nation’s manufacturing sector.

Bashir Yuguda, minister of state for finance, disclosed that the government was actively encouraging the African Union (AU) and Economic Community of West African States (ECOWAS) to reconsider endorsing the EPA in its current state. The government is critically assessing options that will improve competitiveness and ensure that local manufacturers are adequately protected.

“Government is negotiating a strong Common External Tariff (CET) agreement with our ECOWAS partners, which will enable us to protect our strategic industries where necessary, so that optimal tariff lines are reflected in the deviation instrument”, Yuguda stated.

The minister noted this in his presentation as the guest lecturer at the 42nd annual general meeting of the Manufacturers Association of Nigeria (MAN).

MAN has continued to oppose the EPA which is a scheme to create free trade area (FTA) between the European Union (EU) and African, Caribbean and Pacific (ACP) Group of States on the basis that it does not offer the required protection instruments in its current state.

But stating the government position, Yuguda assured that the government would only adopt economic measures that would promote the growth of the Nigerian economy in line with its Vision 20:2020.

On the Export Expansion Grant (EEG), an incentive introduced to encourage the export of Nigerian products, Yuguda revealed that the measure was being reviewed to make it more efficient, assuring that Nigerian manufacturers would be carried along in the review exercise.

The minister explained that the aim was to “ensure that the grant returns economic value that is equal to the large amounts being conceded to exporters in the scheme.”

Speaking further, the minister stated that the government had initiated many policies and programmes aimed at stimulating growth in the manufacturing sector and boosting its competitiveness, including the National Industrial Revolution Plan (NIRP), National Automotive Policy, National Integrated Infrastructure Master Plan (NIIMP), special funding arrangement for manufacturers as well as massive road construction and rehabilitation.

Listing the success stories in manufacturing, the minister said: “In 2013, the manufacturing sector recorded 21.8% compared to 17.8% growth rate in 2010 The share of manufactured goods to total imports in Nigeria rose to 70% in 2013 from 51% in 2012.
“Capacity utilisation in the manufacturing sector also improved to 52.7% in 2013, compared to 46.6% in 2012. The sector recorded an inventory level of N17.3 billion by the end of 2013, down from about N22 billion earlier in the year and N33.2 billion in 2012.”