On the backdrop of the sustained hike in monetary policy rates as well as lending rates in banks, chief executives of manufacturing firms have called on the monetary authority to rethink its strategy, saying that exorbitant borrowing cost place a heavy burden on companies and impede their ability to expand the operation and invest in technology.
They also decried the proliferation of regulatory agencies, and the unpredictable fiscal policy environment in Nigeria, saying that the latter poses significant challenges to long-term planning and investment decisions.
At the CEOs Breakfast Meeting of the Ikeja branch of the Manufacturers Association of Nigeria (MAN), the branch chairman, Elder Robert Ugbaja appealed to the monetary authorities to implement policies that would encourage affordable lending rates, enabling manufacturers to enhance productivity and competitiveness.
He stated: “Unpredictable fiscal policies pose a significant challenge to our long-term planning and investment decisions. Frequent changes in taxation, tariffs, and regulatory frameworks create an environment of uncertainty that discourages both local and foreign investments.
“We urge the government to adopt a stable, predictable, and consultative approach to fiscal policies, working closely with industry stakeholders to ensure a conducive business environment”.
While calling for greater coordination and collaboration among regulatory agencies, Ugbaja said that efforts should be made to establish clear lines of communication and harmonise standards and procedures to minimize duplication and conflicting directives.
He further said: “One of the major challenges we face is the multiplicity of regulatory bodies and the overlapping mandates they possess. Navigating through a maze of agencies and compliance requirements can be daunting for manufacturers, particularly for small and medium-sized enterprises (SMEs) with limited resources.
“The result is a significant drain on time, effort, and financial resources that could otherwise be directed towards enhancing productivity and competitiveness.
“This not only increases the cost of doing business but also erodes investor confidence and hampers our ability to attract much-needed foreign direct investment”.
