The Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA) has said that no fewer than 800 companies in Nigeria closed shop between 2009 and 2011 due to harsh operating business environment. Dr Herbert Ajayi, President of NACCIMA, gave the figure on Tuesday in Asaba in a paper he presented at a zonal workshop on economic diversification organised by the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC).

Ajayi said that more than half of the “surviving” firms had been classified as ``ailing’’, a situation, he said, posed a great threat to the survival of the manufacturing industry.

He added that capacity utilisation in industries hovered around 30 per cent and 45 per cent on the average, with 100 per cent overhead costs.

He added that capacity utilisation in industries hovered around 30 per cent and 45 per cent on the average, with 100 per cent overhead costs.

He blamed the continued decline in the manufacturing sectors on ``political and economic factors’’, citing poor infrastructure and epileptic power supply as key impediments to the industry.

``The manufacturing industry as a whole operates on more than 70 per cent of energy it generates; using generators and operating these generators greatly increases the cost of manufacturing goods,’’ he said.

The industrialist gave other reasons for the woes in the sector as incessant increase in the price of petroleum products used by industries, multiple taxation, unabated smuggling and inadequate access to finance, both local and abroad.

According to him, widespread insecurity and the inability of government agencies in the ports to meet its 24-hour target for cargo clearance have contributed to the dwindling fortunes in the manufacturing sector.

The NACCIMA president, whose speech was delivered by Mrs Mary Iyasere, Vice President of the association, described current government policies to revive the manufacturing industry as inadequate.

``Government policies have been directed towards revitalising the ailing manufacturing sector.

``For instance, in May 2010, the government announced a 1.3 billion-dollar fund to help banks extend credit to the manufacturing sector following the decline in available finance after the global economic crisis had set in.

``Notwithstanding this positive development arising from the reform process, the Nigerian economy, especially the manufacturing sector is still confronted by serious challenges, structural imbalance and lack of diversification.

``The current government policies targeted at the real sector (manufacturing) are also inadequate and preventing the manufacturing industry from flourishing,'' he said.

On the way forward, Ajayi stressed the need for the organised private sector to support government's efforts aimed at revitalising the sector through the much-canvassed Public Private Partnership.

He also called for more transparency in the ongoing government-led privatisation exercise of public enterprises.

Quoting statistics from the Bureau of Public Enterprises (BPE), the government privatisation agency, he said between 1999 and 2011, a total of 121 firms were privatised or commercialised, with about N250 billion realised from their sale.

``It was also reported that 81 of the privatised firms were operating at about 66 per cent and 41 at 34 per cent performance level,'' he added.

The NACCIMA president, however, observed that the figures were in stark contrast to the position of the Senate ad-hoc Committee on Privatisation, which posited that 80 per cent of the firms were not performing.

In addition, he said Nigeria could borrow from the lessons of the economic policies of the “Asian Tigers” -- Hong Kong, South Korea, Singapore and Taiwan -- to boost the manufacturing sector.

He, however, warned that Nigeria must exercise ``caution'' in trying to imitate the Asian policies.

He explained that government needed to consider the peculiarities of the nation’s economy and marry it with those of Asia in areas “where policies are applicable rather than wholesale adoption”.

``This is because the casualty between growth and industrialisation could prove to be a costly mistake as seen in other countries, in pushing for rapid industrialisation,’’ Ajayi stated.

Despite all the billion naira investment. God help us

These are the sort of confirmation of very serious failings no one can spin or downplay. Abeg who is responsible for the "harsh business environment" lest I mention names and the usual emotional supporters club begin to cry that we hate their messiahs and are always picking on them.

The Nigerian Association of Chambers of Commerce, Industry Mines and Agriculture (NACCIMA) has said that no fewer than 800 companies in Nigeria closed shop between 2009 and 2011 due to harsh operating business environment.

..abegi!.. how about mismanagement, incompetent workers, low motivation, fraud, no strategic business plan etc..

No Point going too far . .let's also have the candid view of what MAN has to say concerning our business operating environment

Manufacturers Association of Nigeria (MAN) said yesterday that 240 new factories opened shops in the country within a year, thereby propping up investment in the manufacturing sector.

President of MAN, Chief Kola Jamodu said Monday in Abuja at a stakeholders’ conference on the review of common tariff for 2008 to 2012 that the projected turnover of these factories is N140 billion.

He said that some of its members have expanded their production base by as much as N100 billion, adding that close to 200,000 new employment was generated by December last year alone.

He said there was increased utilization from 47.50 percent in December 2010 to 48.93 percent in December last year, and that in some sectors, capacity utilization grew to 70 percent.

He attributed the growth in the manufacturing sector to the cancellation of the Cargo Tracking Note, reduction in the number of agencies at the ports and adoption of sector-specific incentives/waivers policy and promotion of buying made-in-Nigeria products.

He also said other factors responsible for the growth include rehabilitation of the railway system, adoption of backward integration policy, zero per cent import duty on agricultural machinery, equipment and enzymes.

Jamodu emphasized the need for more consultations and interactions with stakeholders in the implementation procedures of composite cassava flour in bread.

This consultation, he said, should include the possible review of 15 percent levy imposed on wheat and special incentives to accelerate the manufacture of composite flour.

According to him, the real sector should not be overburdened with excessive taxes and affronted with multiplicity of taxes and levies.

On the planned introduction of the N5000 note by the Central Bank of Nigeria, the MAN’s boss said it is a negation of the cashless policy.

He said federal government should rather come up with realistic policies that will encourage the use of coins.

http://www.dailytrust.com.ng/index.php/business/176047-240-new-factories-open-in-a-year-man


https://www.nairaland.com/1039887/240-new-factories-year-man

800 Companies(some of them factories) fold in 2 years while 240 new factories are formed in a year. Can one really conclude we have made so much progress by just that?

my brothers and sisters,where are the so called job opportunities coming from? because there is no Tuesday Guardian,Thursday Guardian,Wednesday punch and other dailies that you will pick and find no vacancy