Business
Continous Border Closure Not Sustainable – MAN
The Manufacturers Association of Nigeria (MAN) has said that the continued closure of the country’s land borders is unsustainable as many genuine businesses are suffering, and some are at the verge of shutting down.
The Director- General, MAN, Segun Ajayi-Kadir said this on Tuesday at a ‘Stakeholders forum on impact of border closure on Nigeria’s economy’ organised by the Lagos Chamber of Commerce and Industry in partnership with the Centre for International Private Enterprise.
Ajayi-Kadir, who was represented by MAN’s Director of Corporate Affairs, Mr Ambrose Obruche said some members of the association complained that their businesses were suffering.
He said such businesses especially in food and tobacco industry spent more money to import their raw materials and export their finished goods within the West African sub region.
While the MAN’s DG noted that it acknowledged that the closure on August 20, 2019 had started having positive impacts, it warned that there were other negative effects on the economy.
He said, “While a section like the agriculture (poultry and rice farmers) had benefitted from the border closure, we want to say the border closure is not sustainable on a long term.
“Some of our members in the food, beverage and tobacco industry, and those in paper and roofing sheet production are complaining that their businesses are being affected negatively.”
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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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