The Manufacturers Association of Nigeria (MAN) has announced plans to hold discussions with the governments of Akwa Ibom and Cross River states over concerns related to excessive taxation and poor road infrastructure. The association expressed that these issues have severely impacted the operations, profitability, and investment prospects of its members.
In a statement during the 17th Annual General Meeting (AGM) and public lecture of the association held in Uyo, MAN’s Akwa Ibom and Cross River Branch Chairman, Bishop Usen Umoh, emphasized the detrimental effects of the current tax regime and deteriorating infrastructure on business activities.
“One of the most pressing issues we face is the multiplicity of taxes,” said Umoh. He stressed the need for a dialogue with relevant authorities to streamline and harmonize the tax system, making it more conducive to business growth.
Umoh also highlighted the poor condition of the roads connecting the two states, particularly the Calabar-Itu federal road, which is critical for transporting raw materials and finished goods between the South-East states. He pointed out that the bad spots along the road have repeatedly delayed the movement of goods, leading to increased costs and inefficiencies in operations.
“The deteriorating road infrastructure has led to delays, increased costs, and has severely impacted our business operations. We urgently appeal to the state governments to liaise with the federal government to prioritize the completion of the Calabar-Itu Road and other critical routes,” he stated, noting the importance of these roads in enhancing the competitiveness of locally produced goods.
Apart from infrastructural issues, the MAN chairman also decried the volatility of foreign exchange rates, which has significantly increased the cost of raw materials and production. “The instability of the naira against major currencies has led to increased costs of raw materials and production, putting immense pressure on our bottom lines,” Umoh said, calling for a more predictable forex policy to support long-term business planning.
Energy costs were another concern raised by MAN, as rising diesel prices and electricity tariffs have added to the already high production expenses. Umoh explained that many manufacturers rely on diesel for power generation due to the unreliable national grid, which has further eroded profit margins and threatened business sustainability.
The association urged the Akwa Ibom and Cross River governments to take swift action to address these challenges, which are stifling the growth and competitiveness of the manufacturing sector in the region.
