The Manufacturers Association of Nigeria (MAN) has hinted that the country might not get out of the recession in 2017, owing to the current economic situation.
Speaking with the News Agency of Nigeria (NAN) on Wednesday in Abuja, the president of MAN, Frank Jacobs, said there was the need for the government to introduce policies and initiatives to control the economy.
Jacobs further added that the federal government ought to initiate steps to shore up the manufacturing sector by ensuring that the concessionary Forex allocation to the sector was effectively implemented.
He said that interest rates needed to be reduced to not more than five per cent and more development banks should be established to provide long-term funding for manufacturers to encourage more investment.
He said: “One cannot say for sure that the recession will be over in 2017.”
“Manufacturers are now patronising the parallel market for their Forex requirements but this is at a very high exchange rate.
” Unfortunately, after production, consumers may not be able to purchase such products, which may lead to the closure of some of the factories.
“I have not seen anything to suggest that, at least not from the perspectives of the manufacturing sector.”
Economic experts had in recent times predicted that 2017 would be tougher than 2016, with the economy not recovering until 2018.