The Director-General of the Manufacturers Association of Nigeria (MAN), Mr Segun Ajayi-Kadri, has commended the Federal Government for adopting measures to improve Nigeria’s ease of doing business rating. Speaking in an interview with the News Agency of Nigeria (NAN) in Lagos on Tuesday, Ajayi-Kadri said the improved rating would assure investors that Nigeria remained the place to go for investments.
He, however, advised the government to adopt policies that would engender industrialisation and reflate the economy to retain its position as Africa’s biggest economy. The MAN chief also called on government to consider paying some tokens as interests to contractors on the monies owed contractors over time. He argued that unpaid debts to manufacturers, who often borrowed at high rates was causing distortions on investment projections. The cost of funds does not wait for when you are to be paid to execute your contract. As a result, manufacturers and suppliers suffer greatly because of these delays many of which run into years.
“I think it is desirable that paying interest should be given positive consideration so that we can generally impact on productivity.” Ajayi-Kadri also argued that giving interests to investors would re-assure them that they would not go bankrupt after committing huge funds on investments. The Federal Government recently approved the issuance of promissory notes and bonds to settle debts owed local contractors from 2006 to 2015. (NAN)
