NGX, companies seek govt intervention in manufacturing sector

Nigerian Exchange Group and stakeholders in the manufacturing sector have called on the Federal Government to provide special fiscal supports to ease the challenges facing the manufacturing sector.

Speaking during the visit of Minister of Industry, and Trade & Investment, Dr Doris Uzoka-Anite, to the NGX in Lagos, stakeholders drew attention to foreign exchange losses and high finance that have become a recurring trend for players in the manufacturing sector.

Group Chairman, NGX Group, Dr Umaru Kwairanga, said it was essential for the government to engage players in the capital market.

“This is important, so that they can know the challenges and be able to proffer solutions to aid the listed companies,” Kwairanga said.

Group Managing Director, NGX Group, Temi Popoola, said that the economy had seen the worst and that the outlook feels positive.

He added that there were areas for NGX to collaborate with the govt in a bid to boost the small and medium scale sector of the economy through improved liquidity.

Popoola urged the govt to become intentional about regulations that would improve the activities of the capital market.

Also present at the meeting were management of Nigerian Exchange Limited (NGX), NGX Regulation (NGX RegCo), Dangote Sugar Refinery Plc and BUA Foods Plc.

Chief Executive Officer, Dangote Sugar Refinery, Ravindra Singhvi, lamented the lack of hedging mechanism for their foreign exchange loans and how the high interest rate needed to come down to ease the operations of manufacturers.

He said, “There are no hedging mechanisms for us and this leaves us exposed to changes in the currency market.”

Chorusing the call for SMEs support, Singhvi suggested that policies should be made to compel companies to pay SMEs on time, give a certain quota of supply contracts to MSMEs. “There is a need to also promote exports and work on the multiplicity of taxes. Unify it, so that it is the same at the national and state levels,” Singhvi said.

Managing Director, BUA Foods, Engr. Abioye Ayodele said the economy was trying to recalibrate noting that he foreign exchange situation impacted the manufacturing sectors negatively but it did not affect others like that.

“There is a need to consider aggregating power supply for manufacturing clusters like Agbara because after raw materials, the cost of energy is one of the highest costs,” Abioye said.

He also called on the minister to consider extending the pioneer status given to some companies including BUA Foods saying that the company was still expanding.