The Federal Government’s delay in signing the fiscal policy measure document for over a year has hurt manufacturers’ ability to competitively produce for the export market, according to the Manufacturers Association of Nigeria, Ogun State Chairman George Onafowokan.
Onafowokan, in an interview with The PUNCH, criticised the Federal Government for its delay in signing the 2024 and 2025 fiscal policy measure document, stressing that the failure to do so is stifling manufacturers’ ability to compete effectively.
Onafowokan, whose company, Coleman Technical Industries Limited, is a leading producer of cable wires, lamented that the delay has made it difficult for manufacturers to import essential raw materials, thereby affecting local production and export potential.
“For now, the fibre optic cable market has not been as buoyant as we expected because of fiscal policies that have not enabled the actual business to act. The enabling factor is that if the tariffs are not right, which they have not been since 2012, it affects the entire sector. The government finally listened to our concerns on fibre optic tariffs and raw materials, but they missed signing the 2024 fiscal policy measure,” he said.
Onafowokan further expressed concern that despite assurances from the Federal Government to the organised private sector, including the Manufacturers Association of Nigeria, that the 2025 document would be signed in January, the government has failed to do so.
“So, we are still waiting for the Ministry of Finance and the Presidency. January has been missed, February has been missed, and March is about to end.
This delay affects not only the cable industry but all manufacturers and importers bringing raw materials into Nigeria,” Onafowokan added.
The CTIL Managing Director explained that the fiscal policy measure serves as a key guideline for tariff adjustments, usually reviewed annually. However, with the last document signed in 2023, businesses are struggling with high costs and uncertainty.
“This has affected our ability to bring in raw materials at the right price and to export. Yes, we have done marginal exports to Ghana, Chad, and Niger Republic, but in significant amounts, we are still far behind where we should be,” he added.
Onafowokan stressed that despite the poor export market, the potential remains high. However, he insisted that policy inconsistencies continue to limit growth.
“Until Coleman, Nigeria has never been a focus for cable exports because no company had built enough capacity to satisfy both the local and international markets. You must first meet Nigeria’s demand before considering exports. Otherwise, you are mismatching your target markets,” the businessman remarked.
Further, Onafowokan disclosed that CTIL is exploring entry into a free trade zone to enhance market access but maintained that the government’s role in creating an enabling environment remains crucial.
“The external business opportunities are massive, but they depend on us getting it right in Nigeria. If local demand exceeds capacity, there is no need to export. That is why policy frameworks must align with business realities,” he concluded.
The delay in fiscal policy implementation continues to frustrate manufacturers, raising concerns over Nigeria’s ability to position itself as a competitive exporter in the global market.