Persuade contractors to use local steel products, manufacturers urge FG
Nigerian steel makers have urged the Federal Government to persuade contractors operating in the country to use locally made steel products.
Members of Steelman sub-sector of the Manufacturers Association of Nigeria made this plea in their sector report released recently to Real Sector Watch.
“We believe there may be need to ban importation of iron rods so as to encourage use of local products,” said the group.
The sub-sector also requested the government to reconsider channelling concessions to local investors instead of contractors which import finished goods into the country.
Members of this group also said that government should intervene by boosting the sub-sector through funding to save existing manufacturing firms, while also urging the Muhammadu
Buhari-led administration to increase the Bank of Industry’s financing to iron rods and rolled products.
The group collectively agreed that there is no need of granting waivers for iron rods and other rolled products made in the country, stressing that the Federal Government should benchmark the sub-sector on international market pricing on gas.
“Being one of the major users of electricity in Nigeria, we have decided to champion the fight against increase in electricity tariff to as much as 45 percent depending on the affected area,” said the group.
“Our members are in serious crisis which, if not tackled immediately, may lead to death of many companies which are already in comatose,” the group further said.
The steelman sub-sector is part of the Basic Metal, Iron and Steel and Fabricated Metal Products Sectoral Group led by Oluyinka Kufile, chairman of Qualitec Industries Limited.
ODINAKA ANUDU