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Prioritise Productivity Reforms To Revive Manufacturing, Onafowokan Tells FG | Independent Newspaper Nigeria

Prioritise Productivity Reforms To Revive Manufacturing, Onafowokan Tells FG | Independent Newspaper Nigeria

Source: Independent Newspapers Nigeria

LAGOS - As the key drivers of econom­ic growth include labour, cap­ital, and how efficiently these two resources are used, the Managing Director of Cole­man Wires and Cables, Mr. George Onafowokan, has called on the Federal Govern­ment to prioritise productivi­ty reforms to revive manufac­turing sector.

While expressing his views on the impact of the naira's depletion on manufacturers, in his recent interview, he emphasised that the appre­ciation of the naira would not bring immediate gains to manufacturers, as buyers held back on purchases, wait­ing for the currency to contin­ue to strengthen.

"This led to a waiting game, with speculators hop­ing to profit from the situa­tion", he said.

Although we have now seen Naira devaluation in the last two weeks, Onafowokan believes that the naira will appreciate and recover, cit­ing the government's efforts to stabilise the economy, in­cluding the return of Foreign Portfolio Investors with over 20 percent interest rate on the Federal Government Bond and Treasury rates.

He also highlighted the re­habilitation of refineries and other initiatives that indicate Nigeria is open for business, not speculation.

Onafowokan, emphasised the need for policies that sup­port manufacturers, such as fiscal policies and benefits for the industry.

He noted that the Manufac­turers Association of Nigeria (MAN) is pushing for these policies to ensure manufac­turers remain in business.

When asked about the turning point, Onafowokan, pointed to the recent market report showing the naira's appreciation and the govern­ment's efforts to restabilise the currency, which will help busi­nesses regain their footing.

In his view, the current situation is a result of specu­lation about the depletion of foreign reserves, which has led to misconstrued informa­tion and instability.

He urged the government to implement policies that support manufacturers and encouraged them to tighten everything to balance the forex position.

Onafowokan, however, expressed optimism that the naira will appreciate more than N1,000 and that manu­facturers will reduce prices when the currency regains its strength in the market.