The Manufacturers Association of Nigeria (MAN) yesterday said a five to seven-year tax break for companies would stimulate investment and increase productivity in the economy.

Chief Azubuike Okafor, MAN’s Branch Chairman for Anambra, Ebonyi and Enugu states, made the assertion during the 29th Annual General Meeting (AGM) of the association in Awka.

The theme of this year’s AGM was ‘Inadequate Power (Energy) – A Major Hindrance in the Manufacturing Sector in Nigeria’.

The association also blamed low productivity in the sector to poor electricity and harsh foreign exchange regime, among others.

“We call on government to reduce the tax burden levies on genuine manufacturing companies.

“Company tax should be reduced by giving manufacturers 5-7 year tax break in order to stimulate investment in the manufacturing sector,” he said.

Okafor said government must provide stable and affordable electricity in the chain-line of production for sustainable growth and development in the sector.

“Aside forex sourcing, the number one other complaint from members is electricity, apart from its unavailability and epileptic supply, the greatest grouse comes from astronomical billings and tariff structure.

“Though MAN is in court with the DISCOs, a subsisting court injunction covers some MAN members as regards MYTO billing, but DISCOs seem not to heed this injunction as tariff is being increased without recourse to the court order,” he said.

The MAN chairman said the sector was still recovering from the shock of the economic recession, adding that late passage of the national budget was also affecting prediction of the economy by firms.

The manufacturers sought for more collaboration between the private sector players in Anambra, Ebonyi and Enugu states to engender more conducive atmosphere for businesses. (NAN)

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