The Manufacturers Association of Nigeria (MAN) has called on the Kaduna State government to introduce a “Kaduna First” procurement policy to boost patronage of locally manufactured products and strengthen the state’s industrial base.

President of MAN, Francis Meshioye, made the call on Thursday at the 29th Joint Annual General Meeting (AGM) of the association’s Kaduna branches, attended by manufacturers from Kaduna, Katsina, Kebbi, Sokoto and Zamfara states.

The AGM, with the theme “Nigerian Tax Reform Acts and the Way Forward for Kaduna State,” focused on the impact of taxation and other economic policies on manufacturers across the North-West.

Mr Meshioye said the current operating environment, characterised by high interest rates, multiple taxation, rising energy costs and infrastructure deficits, was putting enormous pressure on manufacturers.

He said the situation was compounded by low patronage of locally manufactured goods, leaving many companies with large inventories of finished products and tying down their working capital.

“We are experiencing a situation where manufacturers are producing, but patronage remains low, resulting in huge inventories of finished products.

“This is why governments at all levels must lead by example by prioritising Made-in-Nigeria products in their procurement,” he said.

Mr Meshioye urged the Kaduna State government to introduce a policy under which products manufactured within the state would, where competitive, receive priority in government procurement.

He said such a policy would help manufacturers remain in business, preserve jobs and ensure that more economic value was retained within the state.

The MAN president also called for the alignment of Kaduna State tax laws with the new Federal Tax Reform Acts to eliminate confusion, double taxation and other regulatory bottlenecks confronting businesses.

He urged the state government to institutionalise quarterly dialogue sessions with manufacturers to enable government agencies and the private sector to resolve emerging challenges before they became crises.

Mr Meshioye also appealed for the rehabilitation of industrial roads, improved electricity supply and access to affordable financing for manufacturers.

He said high energy costs and unreliable power supply in industrial areas such as Kakuri forced manufacturers to depend heavily on diesel-powered generators, significantly increasing their cost of production.

On the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline project, Mr Meshioye described its progress as a major opportunity for industrialisation in the North-West.

He said the availability of gas in commercial quantities would reduce energy costs, support power generation and attract gas-based industries to Kaduna and other parts of the region.

He therefore called for the establishment of a North-West Gas Industrialisation Task Force to facilitate the early connection of industrial areas, particularly Kakuri, to the gas network.

Mr Meshioye further urged the federal government to strengthen border surveillance and equip the Nigeria Customs Service, Standards Organisation of Nigeria and National Agency for Food and Drug Administration and Control to tackle smuggling and substandard products.

He said the influx of such products continued to undermine legitimate manufacturers and threatened jobs and investments in the country.

The MAN president commended the Kaduna State government for its intervention in the rehabilitation of the Kakuri Industrial Area, saying the project was about 95 per cent completed.

He also commended the Kaduna Investment Promotion Agency (KADIPA), Ministry of Business, Innovation and Technology (MBIT) and Kaduna State Internal Revenue Service (KADIRS) for engaging manufacturers on issues affecting their businesses.

Earlier, Chairman of the MAN South-East Kaduna branch, Kabiru Kassim, said the rehabilitation of the Kakuri Industrial Area was one of the major achievements recorded through collaboration between the association and the state government.

Mr Kassim said manufacturers nevertheless continued to contend with high electricity costs, unstable power supply, multiple taxation, limited access to affordable financing, inflation and inadequate government patronage.

He appealed to the state government to ensure the completion of the Kakuri rehabilitation project and sustain engagement with manufacturers.

He said the adoption of a “Kaduna First” policy would support local industries, preserve employment and make Kaduna a more attractive destination for manufacturing investments.

Mr Kassim said manufacturers remained resilient despite the difficult operating environment, noting that members continued to invest, produce and provide employment opportunities.

He assured that MAN would continue to collaborate with the state government, its agencies and other stakeholders to create a safe, competitive and business-friendly environment.

The AGM brought together manufacturers and other stakeholders from Kaduna, Katsina, Kebbi, Sokoto and Zamfara states to assess the performance of the sector and chart a way forward for industrial development in the region.

The association also called for urgent resolution of outstanding foreign exchange obligations owed to manufacturers, affordable financing, effective implementation of the Nigeria Industrial Policy 2025 and stronger enforcement of policies promoting Made-in-Nigeria products.

The 54th National Annual General Meeting of MAN is scheduled to be held from October 5 to October 10 in Lagos, with the theme “Leveraging Industrial Policy to Position Nigeria as Africa’s Industrial Hub.” 

(NAN)