Small and Medium Scale Enterprises (SMEs) and manufacturing companies in Ogun State can look forward to a brighter future as the state government has expressed its dedication to constructing power infrastructure that will ensure a stable electricity supply throughout the region.
Governor Dapo Abiodun made this commitment while serving as the special guest of honor at the 38th Annual General Meeting of the Manufacturers Association of Nigeria (MAN), Ogun State chapter, held at the Conference Hotel in Abeokuta.
Represented by the Secretary to Ogun State Government, Mr. Tokunbo Talabi, Abiodun emphasized that the government is leveraging its extensive gas distribution network to address the challenges of inconsistent power supply. He pointed out that by addressing issues related to the high cost of petroleum and irregular power supply, the state can mitigate the high levels of unemployment and insecurity.
Governor Abiodun remarked, “We are aware that many manufacturing firms operating in Nigeria have faced closure due to irregular power supply and the high cost of petroleum products. This situation has resulted in high unemployment and insecurity. It was with the determination to change this narrative and enhance the real sector’s performance that the Federal Government, under President Bola Ahmed Tinubu, implemented the deregulation policy.”
Abiodun encouraged MAN to collaborate with the federal government on initiatives that can positively impact the sector and called on association members nationwide to support the federal administration’s efforts.
As the guest lecturer at the event, Mr. Bismarck Jemide Rewane, a prominent economist and Managing Director/CEO of Financial Derivatives Co. Ltd, discussed the manufacturing sector’s challenges over the past five years. He cited factors such as the Covid-19 pandemic, the Russia-Ukraine war, and foreign exchange shortages as contributing to its underperformance.
Rewane acknowledged that the nation is facing significant challenges, including an undervalued currency and commended the federal government for implementing key market reforms and reducing market distortions. He urged the government to continue these reforms, including debt rescheduling, institutional changes, increased private investment in the power sector, and the implementation of the 2023 Electricity Act, among others.
The Chairman of MAN, Ogun State chapter, Mr. George Onafowokan, also addressed the gathering. He highlighted the adverse effects of immediate policies like Naira devaluation and subsidy removal without adequate buffers for the economy. Onafowokan emphasized the need to address high power costs, high loan interest rates, customs-related challenges, and multiple taxes, calling for sector-friendly fiscal and monetary policies to revive and strengthen the manufacturing sector.
