RECESSION: MAN URGES FG TO SELL IDLE ASSETS
President of Manufacturers
Association of Nigeria (MAN), Dr. Frank Jacobs, says idle assets that no longer
yield dividend to government could be sold to reverse the current economic
situation.
Jacobs said this in
an interview with the News Agency of Nigeria (NAN) yesterday in Abuja.
He said that funds
realised from the sales of the idle assets could be used to develop structures
that would enhance the economy of the country.
“What I will
recommend is the sale of idle assets that are no longer yielding dividend to
government. Government can also privatise those idle assets that have become
redundant like the refineries.
“If the idle assets
are sold off and income therefrom can properly be deployed to develop
structures that will support the industrial sector, it can help to pull the
country out of the recession,’’ Jacobs said.
Commenting on
the challenges of the manufacturing sector, Jacobs said the country’s economy
had not been favourable to the sector, adding that past challenges still linger
on.
He mentioned few of
the challenges including indiscriminate changes in the Monetary Policy
Rate (MPR), which, he said , was a restraining obstacle that should be removed.
Jacobs said that
reduction of other rates, especially refinancing and bank lending rates, should
be tackled.
According to him,
there should be special funding windows for the manufacturing sector to enhance
its productivity. According to him, there is need for the intensification of
the resource-based industrialisation programme.
“This will save the
country a lot of foreign exchange currently being used in importing raw
materials. It will also provide free funds for government development
projects,’’ he added.
The president called
on government to intensify backward integration in the agriculture sector to
catalyse more industrial input supply, adding that these would also free more
funds for the government.
Jacobs said solution
to the current recession required strong government resolve and commitment to
re-energise the economy for increased revenue.
“The drive by the
current administration to diversify the economy is, therefore, a step in the
right direction. This will insulate the economy from the present experience and
future external shocks.”
According to him, the
sector has been exacerbated recently, even as he stated that the challenges
need to be addressed urgently.
Jacobs said that most
manufacturers resorted to the parallel market for forex and “this is expensive
and has made their products uncompetitive price-wise.”
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