President Muhammadu Buhari on Thursday tasked the private sector operators to take the lead in the efforts at resuscitating the nation’s ailing economy saying they hold the key to quick economic recovery.
The President, who spoke at the 44th Annual General Meeting of the Manufacturers Association of Nigeria (MAN) held in Abuja and attended by lawmakers and members of the Organized Private Sectors (OPS), enjoined the private sector to work with the Federal Government towards taking the country out of recession.
Noting that the government will rely heavily on the input of the private sector in its economic policy, he extolled the contributions of Aliko Dangote and other manufacturers. He said the private sector is indispensable in the development of the Nigerian economy.
President of the Dangote Group, Aliko Dangote urged the Federal Government, also at the event, to expand the tax base rather than increasing the tax rate as currently being advised.
He said: “The crux of our problem is therefore the depth and quality of diversification. To be impactful, diversification in Nigeria has to occur across several fronts…There is export diversification, which involves creating multiple streams of foreign exchange income by exporting a variety of value added products (as well as services). Next is fiscal diversification to shore up the contribution of non-oil revenue to total government revenue by increasing tax receipts. The emphasis should however be on expanding the tax base rather than increasing the tax rate.”
Insisting that diversification is key to the growth and development of the economy, Dangote said: “Diversification is no longer an option, it has now become the only hope. Diversifying the Nigerian economy can sometimes be misconstrued to mean neglecting the oil & gas sector. On the contrary, the oil & gas sector needs to be deepened and expanded to enable us unlock the full benefits in the hydrocarbon value chain.”
He further said: “Even though diversification of the economy has to be private sector driven, government has a huge role to play in creating a conducive climate for businesses to thrive. One of the biggest challenges in Nigeria today is the deteriorating macroeconomic environment. Government needs to quickly restore confidence in the economy by beefing up its external reserves while making concerted efforts to improve the overall business climate. Investors always look out for stability of the local currency amongst other factors in making decisions on whether or not to risk their investment in any economy. Needless to say, to effectively diversify the economy the private sector would require foreign exchange to make the necessary investments in new sectors”
Minister of Industry, Trade and Investment Dr Okechukwu Enalamah said the government will continue to partner MAN in order to get Nigeria out of the current recession.
He said, going forward, the Buhari administration will be creating enabling environment for businesses to thrive; implement the Nigeria Industrial Revolution Plan; champion and facilitate macro, medium and micro economic programmes and as well support the participation of Nigerian manufacturing sector into the global chain.
Speaking, President of MAN Dr Frank S. Udemba Jacobs commended Mr. Dangote for his contribution to manufacturing in Nigeria.
“I most especially thank the President of the Group for his generosity to the association always,” he said.
He added: “The Dangote Group which started as a small trading firm in 1977 is today a multi trillion naira conglomerate with its operations spanning across many Africans countries.
MAN President further extolled the President position not to adopt the EU-ECOWAS Economic Partnership Agreement, as well as the recent policy announced by the CBN allocating 60percent of all available foreign exchange for the manufacturing sector for the importation of raw materials and machinery.
Senate President Abubakar Bukola Saraki who was represented by Chairman Senate Committee on Industry Senator Sam Ominiyi Egwu said the Senate was ready to work with the Nigerian manufactures, especially now that the country faces economic challenge.
Minister of Mines and Steel Development Dr Kayode Fayemi said the government was desirous of growing the sector so that it can contribute meaningfully to the GDP.
He said efforts are afoot to partner private sector to revive the moribund Ajaokuta Steel Complex.
Speaking also, the Minister of the Federal Capital Territory(FCT) Mallam Muhammad Musa Bello said the FCT Industrial Zone is being upgraded with the necessary infrastructures to play its role in the manufacturing sector of the Nigerian economy.
