The Manufacturers Association of Nigeria (MAN) noted that the manufacturing sector has borne the brunt of Nigeria’s debt crisis, as the country’s debt profile surged by 410 percent in the past 8 years.

They cautioned that the N77 trillion inherited by President Bola Tinubu’s administration could hinder its accomplishments without prompt intervention.

The Manufacturers Association of Nigeria (MAN) highlighted this in its Q1 2023 Manufacturers CEO Confidence Index (MCCI), titled “Special Focus: MAN at the Receiving End of National Debt Crisis.”

The report outlined the adverse impact of rising public debt on the manufacturing sector.

It emphasized that mounting domestic debt reduces credit availability, forces higher lending rates, and hampers private investment.

Additionally, servicing external debt in foreign currencies leads to currency depreciation and costly imports for manufacturers.

The report also noted that excessive debt servicing exacerbates forex scarcity, negatively affecting the manufacturing sector,

which faces challenges like infrastructure decay, forex shortages, credit constraints, and naira depreciation.

MAN disputed claims of a revenue problem, attributing the crisis to mismanagement of collected funds.

They argued that a N77 trillion debt burden would likely impede the new administration’s progress.

MAN recommended strategies such as expanding the tax net for the informal sector, enforcing the Voluntary Assets and Income Declaration Scheme (VAIDS),

amending tax laws, reducing governance costs, and adhering to fiscal responsibility regulations.

By Chinedu

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