Business
MAN Accuses NAFDAC Of Killing Local Industries
The Manufacturers Association of Nigeria (MAN) has blamed the National Agency for Food and Drug Administration and Control (NAFDAC) for the increase in foreign products in the country.
Mr Innocent Umoh, Vice President, MAN Group for Toiletries and Soaps, told newsmen in Lagos that the trend had impacted negatively on local industries.
Umoh said that the association’s investigations had revealed that most of the foreign products in the Nigerian market were legally registered by NAFDAC.
He alleged that the situation was because of NAFDAC’s inability to determine which goods to register as it was not carrying other stakeholders along in its activities.
“ We are surprised at the sudden influx of many foreign goods into the Nigerian market.
“ Our investigation revealed that most of those products are not smuggled but legally registered by NAFDAC,’’ he said.
According to him, the development negates the Federal Government’s resolve to encourage local production.
“ Efforts to change Nigerians’ penchant for foreign products cannot be achieved with the high level of foreign products in the Nigerian market,’’ he said,
Umoh said that the development had resulted in low capacity utilisation and high inventories within the local industry.
He added that if not checked, it could result to more retrenchment and the closure of more factories.
According to Umoh, NAFDAC indulges in registering the foreign products because of the huge revenue this brings to the Agency and the Federal Government.
According to him, NAFDAC indulges such products because of the huge revenue the registration brings to both the agency and the Federal Government.
“ We learnt that the agency generates huge revenue from the exercise and it should not be done to the detriment of the economy.
“A situation where we have to register every product or brand ,all in the name of realising more revenue, drains the meagre resources of the local operator,’’ he said.
Umoh urged the Federal Government to properly implement the ban on the importation of detergent and soap to protect the local industries.
“ The government should properly monitor the security agencies manning the border posts to reduce the influx of products on the prohibited list,’’ he said.
He urged the three ties of governments to streamline taxes because the Small and Medium Scale Enterprises (SME) were the worst hit.
Umoh also urged the Federal Government to reduce tariff on imported raw materials to aid the productivity of local industries.
Meanwhile, NAFDAC’s Deputy Director, Public Relations, Abubakar Jimoh has said that the allegations of MAN were incorrect.
Jimoh said NAFDAC would not deliberately register a foreign product that would impact negatively on the local industry.
He said that NAFDAC was only carrying out its statutory duty in the registration of products that were beneficial to the people and not necessarily to make more money for the government.
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Sugar Tax ‘ll Threaten Manufacturing Sector, Says CPPE
In a statement, the Chief Executive Officer, CPPE, Muda Yusuf, said while public health concerns such as diabetes and cardiovascular diseases deserve attention, imposing an additional sugar-specific tax was economically risky and poorly suited to Nigeria’s current realities of high inflation, weak consumer purchasing power and rising production costs.
According to him, manufacturers in the non-alcoholic beverage segment are already facing heavy fiscal and cost pressures.
“The proposition of a sugar-specific tax is misplaced, economically risky, and weakly supported by empirical evidence, especially when viewed against Nigeria’s prevailing structural and macroeconomic realities.
The CPPE boss noted that retail prices of many non-alcoholic beverages have risen by about 50 per cent over the past two years, even without the introduction of new taxes, further squeezing consumers.
Yusuf further expressed reservation on the effectiveness of sugar taxes in addressing the root causes of non-communicable diseases in Nigeria.
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