Posted by By Toba Agboola, Business Reporter on
The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to urgently tackle the problem of poor infrastructure to enhance the productivity of the private sector.
The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to urgently tackle the problem of poor infrastructure to enhance the productivity of the private sector.
Its President, Alhaji Bashir Borodo, said the government must put a lot in place to boost industrial capacity.
Borodo, who was speaking on the expectations of the real sector in 2009, said infrastructure is in a mess.
"Unless something urgent is done, nothing meaningful will be achieved in 2009," he said.
The MAN boss said there had been no indication that the situation was about to change.
He denied reports that the N70 billon textile revival fund had been released, saying: "nothing of such has happened."
"There is no reason why the fund should not be release going by the experience we've had in the other country. We hope that something will be done in this regard very soon," he said.
The President, Lagos Chamber of Commerce and Industry (LCCI), Asiwaju Solomon Onafowokan, on his part, sees the crude oil benchmark of $45 as the spanner thrown into the 2009 budget.
"It is a wrong signal and this will put the private sector in a tight corner," he said.
Onafowakan said that the benchmark should have been $40. According to him, analysts predict that prices of crude oil would hover between $40 and $49 in 2009.
The LCCI boss said that the oil prices already below the benchmark, coupled with recent cut in the production quota for OPC members, Nigerians should expect a tighter and challenging economy.
To him, the budgetary allocation for the power sector is grossly inadequate given the huge challenge poor power supply pose to economic development.
He urged the Federal Government to pay more attention to this area.
"The allocation given to the power sector, looking at it on the surface, is not adequate at all. However, considering that about N680 billion was allocated to it only last October, one can say it is okay. The budget must, however, be judiciously implemented," he said.
Onafawokan urged the Federal Government to quickly revive the railway, saying it is a more effective and cheaper means of mass transit.
"Transferring products from the North to the South and vice versa is very expensive. So, there is the need to channel more money into the railway system," he said.
Poor state of infrastructure, especially power and road, has blamed for the poor performance of the country's economy.