MADE-IN-NIGERIA: Be sector-specific in support for local contents, MAN urges FG

The Manufacturers Association of Nigeria, (MAN), has urged governments at all levels, especially at the center to be more sector specific in the execution of its executive order, for MDAs to patronise locally made products.
MAN stated that it has made recommendations to the Federal Government, on measures that need to be taken, if it hopes to achieve the executive order on support for local contents in public procurement by Ministries, Departments and Agencies of the Government.
President of the association, Frank Jacobs made this known during a parley with business correspondents in Lagos on Thursday.
Jacobs, while dishing out the recommendations stressed that, the executive order on patronage of local products could be narrowed down to ‘sector-specific’ Margins of Preferences (MOP) and sectors highlighted to do well include; Textiles, wearing apparel, carpet, leather/leather footwear; Chemical and Pharmaceuticals; Pulp, Paper & Paper products, Printing & Publishing; Basic metal, Iron and steel and fabricated metal products and Wood & Wood Products Industry.
He expressed satisfaction at the response of the Federal Government to the ‘Buy Nigeria’ advocacy campaign, and efforts to reduce the plights of Manufacturers in the Country, particularly, initiating the review of the current Public Procurement Act, introducing the Executive order on improved Government Patronage of ‘Made-in-Nigeria products, and the current build up against smuggling and counterfeiting activities in the Nigerian economy.

According to him, “The Association launched a massive evidence-based advocacy campaign in 2016, for patronage of made-in-Nigeria products, using multifarious platforms including strategic alliances. I am pleased to inform you that within a short period of the commencement of this advocacy, the campaign made reasonable progress by necessitating the call for the review of the current Public Procurement Act, introducing the Executive Order on improved Government Patronage of ‘Made-in-Nigeria” products, which gave 40% participation rate for MSMEs, and the current build up against smuggling and counterfeiting activities in the Nigerian economy”.

He further explained the role of Public procurement to Manufacturers, and how much damage, importation of items produced in the country has done to the Nigerian economy.

“Most intriguing is the fact that when we buy foreign goods, we expand the industrial base of the producing country, thereby creating more jobs there, to the detriment of our local economy. In contrast, when we patronize made-in-Nigeria products, we expand our industrial base, create more jobs and reduce the human misery brought about by poverty in the country”.

Jacobs, while dishing out the recommendations stressed that, the executive order on patronage of local products could be narrowed down to ‘sector-specific’ Margins of Preferences (MOP) and sectors highlighted to do well includes; Textiles, wearing apparel, carpet, leather/leather footwear; Chemical and Pharmaceuticals; Pulp, Paper & Paper products, Printing & Publishing; Basic metal, Iron and steel and fabricated metal products and Wood & Wood Products Industry.

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These sectors he believed will help service fashion, military, para-military, health, education, interior décor, furniture and assembly industries as well as for electricity distribution infrastructure, road and housing construction materials, that are on high demand by the Government and Nigerian consumers; thereby, impacting positively on Manufacturing output, income, employment and tax revenue.

“Imagine that the Government patronizes local textile manufacturers for uniforms required by the Ministry of Interior, Defence, Health, Education, the National Youth Service Corps and the Nigeria Police Force, the impact on manufacturing output, employment and wealth creation would be overwhelming, with significant trickle down effects on every facet of the economy”.

“While commending the Federal Government for this support, I would like to solicit further patronage through procurement value chains and the effective implementation of the Executive Order, using the Margins of Preference of at least 35% in favour of products that are made locally”, he said.

In addition, Jacobs made recommendations he believed the Federal Government could adopt:

“- Set a margin of preference for made-in-Nigeria products for Government. Although the MOP for the five pilot sectors averaged 63%, MAN suggests 35% for starters, taking into cognizance the tight financial position of the Government at the moment.

– Encourage State and Local Governments to enshrine patronage of made-in-Nigeria products in their procurement policies and processes.

-Sustain, monitor, enforce and ensure that the 40% participation rate for MSMEs provided in the Executive order is strictly adhered to.

– Create a sustainable platform through which the general public will be continuously educated on the need to jettison the current penchant for foreign goods and patronize locally manufactured products.

– Review the laws against dumping, smuggling, adulteration and counterfeiting activities in the country to impose stricter penalty on culprits”, he recommended.

Meanwhile, Vice President Yemi Osinbajo, while in acting capacity as the President, signed three executive orders, on May 18, 2017, which included, ‘support for local contents in public procurement by the Federal Government’.

The order stated details for procurement by all Ministries, Departments and Agencies, which include ‘granting preference to local manufacturers of goods and services in their procurement orders’.

 

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