The Manufacturers Association of Nigeria (MAN) has admitted that while President Bola Tinubu’s economic reforms have brought hardship to Nigerians and businesses, the policies are necessary to address the nation’s challenges.

Chairman of MAN in Cross River and Akwa Ibom States, Dr. Adoga Inalegwu, stated this in Calabar over the weekend after a familiarisation visit to member companies.

Inalegwu noted that the President had taken bold steps that many previous governments had avoided.

“I think President Bola Tinubu’s policies are necessary and tough decisions that Nigeria needs presently. This is because if we keep deceiving ourselves that everything is the way it should be, if we keep palliating ourselves, we will never solve our problems,” he said.

He pointed to ongoing tax reforms as one example, explaining that while they had pros and cons, they offered clear benefits for manufacturers.

“One of the fundamental advantages is shrinking, reducing the basket of multiple tax issues that we are faced with. So that for me is important. And also the fact that he has tried to improve the disposable income of the population,” he added.

The MAN boss expressed concern about the high exchange rate of over ₦1,500/$1, but welcomed the recent 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 it is not just stable, the dollar is also available. We no longer struggle to source for Forex. In 2023, I am the one that knows how much I suffered in sourcing for Forex. I suffered big time,” Inalegwu explained.

He admitted that manufacturers were still paying almost double to import raw materials, but noted that the relative stability in forex supply was a sign of progress.

According to Inalegwu, while some member companies are struggling under the current conditions, many have evolved strategies to cope with the challenges.

“This doesn’t mean that there are no member companies that are not bearing the brunt of the times. 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, can still be ambitious, can still be forward-thinking, even when things are not very rosy,” he said.

Concern Over VAT Hike

Inalegwu, however, expressed dissatisfaction with the recent 2.5 per cent increase in Value Added Tax (VAT), warning that it would significantly affect revenues across the manufacturing sector.

“The magnitude of the increase to many firms that spend billions is significant enough. One way or the other, it will impact on revenues. I’m not happy with that,” he lamented.

The MAN chairman concluded that though the policies were not perfect, they were laying a foundation for long-term recovery, urging manufacturers to remain resilient and forward-looking.