MAN advocates cost reduction of raw materials for syringe, other medical appliances
Manufacturer Association of Nigeria has advocated for a lower tarriff of 5 percent cumulative on the importation of raw materials for making syringes and needles in a bid to encourage local manufacturers of medical devices in the country.
The association also requested for 20 percent duty on finished syringes and 50 percent Import Adjustment Tax (IAT) to discourage importation of finished syringe and needles, to boost local production of the devices in line with the backward integration policy and patronage of made-in-Nigeria goods directive of government.
Frank Jacobs, President, Manufacturers Association of Nigeria (MAN), made the call in an interactive session with journalists on Tuesday at the official commissioning of Healthcare Marketing Agency HMA Medical Limited, Syringe and needle production plant in Ilorin, Kwara State.
According to him, the cost of funds to businesses in Nigeria is quiet high, saying, what is most important to HMA medical is the duty rates on imported finished products as against the raw materials with which they produce syringe and needles.
“The information I got from the company is that presently, they pay 35 percent cumulative duty, VAT and Levy on imported raw materials to produce syringe and needle but in the same country, those syringes and needles are imported at 5 percent duty, 0 percent VAT and 0 percent Levy. That is unfair and does not encourage local manufacturing and we are asking government to do something about it.
“There is need to reduce the cost of raw materials for the devices to encourage indigenous companies to produce locally and create jobs for our teaming youths, rather than paying high import duty where as finished products are imported at very low duty,” Jacobs said
The MAN boss who commended the government on ease of business in Nigeria said that:” if the environment is conducive and welcome, many more investors will venture in to syringe manufacturing.
“At present, it is only this company and few companies in this country that produce syringe in the entire West African countries but if we have the right environment and operation, I think more manufacturers will come up and we will be able to produce more for exportation.”
In his welcome address, Ayodele Shittu, the Chairman, Board of Directors of HMA Medical Limited disclosed that 15 US$ million was invested in to the syringe and needle production plant, an indegenous venture with partnership with a Sino -German company.
Speaking on the company capacity, mission and vission, Shittu said:” the company currently has capacity of 200 million Syringe and 350 million Needles per anum. Our mission is to improve quality of life in Africa through provision of superior and affordable medical consumable by using local content, talent, mordern technology and adhere to best global standards.
“And to become leader in producing medical devices in Africa through continuous improvement that would be driven by consumer value maximization.”
Shittu who said the company’s core values include; quality, integrity and consumer centric, noted that, “our products will be exported to the ECOWAS and the African Union countries. This will save and earn us scarce forex. Urgent government support is necessary in the area of hastening formulation of policy on medical syringes / needles.”
SIKIRAT SHEHU, Ilorin