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MAN to FG: Give Us License to Import Diesel from Niger Republic, Chad
Dike Onwuamaeze
The Manufacturers Association of Nigeria (MAN) has asked the federal government to issue its members licenses to import diesel from the Republic of Niger and Chad, Nigeria’s neighbouring countries, in order to avert the avoidable monumental paralysis of manufacturing activities that could arise from total shut down of production operations.
The MAN also tasked the government to develop a response strategy to address challenges emanating from the armed conflict between Russia and Ukraine.
These demands were contained in a press release that was issued yesterday by the Director General of MAN, Mr. Segun Ajayi-Kadir.
The press release was titled ‘The Position of MAN on the Recent Increase in the Price of Automotive Gas Oil (AGO)’, popularly called diesel, which MAN stated that its price went up by over 200 per cent.
The MAN said: “In light of the gravity of the precarious situation that we have found ourselves as a nation and the looming dangers ahead, the expectations of manufacturers in Nigeria are as follows: that government should urgently allow manufacturers and independent petroleum products marketing companies to also import AGO from the Republic of Niger and Chad by immediately opening up border posts in that axis in order to cushion the effect of the supply gap driven high cost of AGO.”
The association also requested the government to “issue licenses to manufacturing concerns and operators in the aviation industry to import diesel and aviation fuel directly to avert the avoidable monumental paralysis of manufacturing activities arising from total shut down of production operations and movement of persons for business activities.”
Ajayi-Kadir noted that Nigerian manufacturers are greatly concerned about the implications of the over 200 per cent increase in the price of AGO on the Nigerian economy and the manufacturing sector.
“More worrisome is the deafening silence from the public sector as regards the plight of manufacturers. Four obvious questions that readily come to mind that are seriously begging for answers are: What can we do as a nation to strengthen our economic absorbers from external shocks? Should manufacturing companies that are already battered with multiple taxes, poor access to foreign exchange and now over 200 per cent increase in price of diesel be advised to shut down operations? Should we fold our arms and allow the economy to slip into the valley of recession again? Is the nation well equipped to manage the resulting explosive inflation and unemployment rates?,” he asked.
It also implored the government to “continue to support manufacturing to accelerate the process of recovery from the aftermath of COVID-19 and previous bouts of recession to avert the complete shutdown of factories nationwide with multiplier effect on the employment.”
The MAN also asked the federal government to “as a matter of priority develop a National Response and Sustainability Strategy (NRSS) to address challenges emanating from the ongoing invasion of Ukraine by Russia.”
The MAN also tasked the government to “address the challenge of repeated collapse of the national grid (twice within a week), which is causing acute electricity shortage in the country, especially for manufacturers,” adding that government should “remove VAT on AGO as instant stimulus for immediate reduction in price and expedite action in reactivating or privatising the petroleum products refineries in the country.”
It also demanded that the government should “restrict the export of maize, cassava, wheat, food related products and other manufacturing inputs available in the country; and grant concessional foreign exchange allocation at the official rate to manufacturers for importation of productive inputs that are not locally available.
