Capacity utilisation for non-oil sector will increase in 2017 – MAN, NACCIMA

The Manufacturers Association of Nigeria on Tuesday said the capacity utilisation for non-oil sector, which primarily includes manufacturing, agriculture and mining, would increase in 2017.
Frank Jacobs, the President of MAN, spoke in an interview with the News Agency of Nigeria in Lagos against the backdrop of the newly reduced import duties on 115 items by the Federal Government.
NAN reports that Kemi Adeosun, the Minister of Finance, had last week announced the reduction of import duties on 115 items, most of which were raw materials for local production.
Jacobs said: “We can say the step is a welcome idea.
“It shows that that government listened to us, manufacturers and industrialists, because the cost of raw materials is one of the issues crippling the non-oil sector.
“For instance, the reduction of duties on alcohol for medical pharmaceutical purposes and others needed by local manufacturers in this field will reduce the cost of production.
“The same also applies to red wines, beverages and vinegar, the increased duty from 20 per cent to 60 per cent may serve as a deterrent to importation and boost local production.
“For 2016, it has been a year of recession for two consecutive quarters with no real policy to stimulate investment, but we are optimistic that 2017 will be better.”
Jacobs said that an achievable monetary policy should come along with fiscal policies in order to achieve the desired results.
Also speaking, Bassey Edem, the President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, lauded the Federal Government for reviving the Export Expansion Grant.
Edem said if the grant was implemented accordingly, it would increase the capacity of non-oil exporters in serving the large global demand for Nigerian products
Also, Chief Duro Kuteyi, the President, Nigerian Association of Technology Incubation Industrialists, called for effective implementation of the policies and waivers.
He said that the new campaign re-launched by Dr. Abubakar Bukola Saraki, the Senate President, would open a door of opportunities for Nigerian manufacturers with ideas that could compete favourably with imported products.
Kuteyi, who is also a food manufacturer, urged the government to draw out effective implementation strategies for all its policies this year.