- MAN Endorses Tinubu’s Tough Policies, Says Reforms Necessary
- Dr. Inalegwu noted that the reforms, including tax adjustments, are bold moves that Nigeria needs to address
- Frowns at the recent 2.5 percent increase in Value Added Tax
The Manufacturers Association of Nigeria (MAN) has expressed support for the economic reforms of President Bola Tinubu, saying the policies, though tough, are necessary for long-term growth.
Eko Hot Blog reports that the Chairman of MAN in Cross River and Akwa Ibom States, Dr. Adoga Inalegwu, made this known in Calabar over the weekend after a familiarization visit to member companies.
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He noted that the reforms, including tax adjustments, are bold moves that Nigeria needs to address structural problems.
“I think President Bola Tinubu’s policies are necessary and tough decisions that Nigeria needs presently. If we keep deceiving ourselves that everything is fine, we will never solve our problems,” he said.
Dr. Inalegwu highlighted that tax reform, despite its controversies, has reduced the burden of multiple taxation for manufacturers while also aiming to improve the disposable income of Nigerians.
On the exchange rate, the MAN chief admitted that manufacturers are not pleased with the naira’s current rate of over N1,500 to the dollar, but welcomed the relative stability in the foreign exchange market.
“We are not satisfied with the exchange rate, but we are happy with the stability. We are also happy that the dollar is available. In 2023, I suffered greatly sourcing forex, but that has changed,” he said.
He explained that although stability has returned, manufacturers still grapple with high costs of imported raw materials, which have doubled due to the forex situation.
Inalegwu, however, said the industry has learned to adapt to the challenges by evolving new survival strategies.
“When times are difficult, you have to evolve strategies to survive, and not just to survive, but also to thrive. Nigerian manufacturers can still be resilient, ambitious and forward-thinking even when things are not rosy,” he added.
The MAN chairman also criticized the recent 2.5 percent increase in Value Added Tax (VAT), describing it as a major burden for firms already spending billions on operations.
“The magnitude of the increase is significant enough. One way or the other, it will impact on revenues. I’m not happy with that,” he said.
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