N77tn debt may limit achievements in Tinubu’s govt – MAN

Forum 8 months ago

N77tn debt may limit achievements in Tinubu’s govt – MAN

The Manufacturers Association of Nigeria has lamented that the Federal Government is placing its N77tn debt burden on the manufacturers in the country.

The association also said its members have been hit with high multiple taxes.

In its first quarter Manufacturers CEO Confidence Index on Monday, the Q1 report titled, ‘Special Focus: MAN at the Receiving End of National Debt Crisis,’ MAN noted that the nation’s tax burden which has “domino effects of escalating public debt on the manufacturing sector are endless.”

The association noted that Nigeria’s rising domestic debt is affecting the survival of private investments in the manufacturing sector.

This, it said, reduces the availability of credit facilities and brings about increased lending rates.

It revealed that the depreciation of the naira is also caused by the servicing of external debts in foreign currencies.

MAN blamed the FG for the unfavourable business climate in the country, citing the “indiscriminate imposition of high and multiple taxes on manufacturers.”

“To start with, rising domestic debt is highly crowding out private investment in the manufacturing sector by reducing credit availability and forcing hike in lending rates.

“External debts are mostly serviced in foreign currencies, hence high demand for foreign currencies further depreciates the naira and makes importation of non-locally produced critical inputs highly expensive for manufacturers.”

“Moreover, higher debt servicing is consuming greater volume of forex and worsening the forex scarcity that has plagued the manufacturing sector for many years. Higher debt repayment requires increased revenue,” the statement added.

The statement read, “The Nigerian government has continued to breed a harsh business environment by its indiscriminate imposition of high and multiple taxes on manufacturers all in a bid to generate revenue.

“Huge public debt led to low foreign investment and foreign capital inflow which worsen the forex scarcity that has remained a bone in the throat of manufactures.”