767 Manufacturers Shut Down in 2023 – MAN

Manufacturers Association of Nigeria says a total of  767 manufacturers have shut down operations in the country, while 335 have become distressed in 2023.

This, it said came against the backdrop of what he called exchange rate volatility, rising inflation and other economic challenges that have reportedly worsened the investment climate.

MAN stated this in a statement recently, wherein it criticized  the recently introduced Expatriate Employment Levy by the Federal Government.

The group said it was struck with disbelief,noticing that the levy runs contrary to President Tinubu’s Renewed Hope Agenda and what it termed the kernel of his Fiscal Policy and Tax Reform initiative.

According to MAN, the unintended negative consequences on the manufacturing sector are severe and cannot be accommodated at this time of evident downturn in Nigeria’s economy.

The statement further noted that capacity utilisation in the sector has declined to 56 per cent amid rising interest rates and scarcity of forex needed to import raw materials and machinery.

It argued that Nigeria is a signatory to the African Continental Free Trade Area agreement, which seeks to promote the free movement of skilled labour across the continent, which is complemented by non-discriminatory measures against fellow Africans.

The association expressed worry that the introduction of the levy could trigger retaliatory measures against Nigerians working across Africa and other nations of the world and may also frustrate regional integration efforts and portray Nigeria as a spoiler among her peers.