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Tuesday, June 28, 2011

Expect tough economic policies, Jonathan tells Nigerians

•Plans incentives for local firms •Nigerians expect privatisation of refinery and power sector
Specific industry focused incentives and waivers will soon be unfolded in support of local firms engaged in the production of indigenous goods and products, as government is set to take some determined measures which may appear painful but will turn out to be very rewarding.
Announcing this at the commissioning of the N4 billion May and Baker Pharma Centre in Ota, Ogun State on Monday, President Goodluck Jonathan said government is set to roll out policies, including waivers, that will ensure that local manufacturing firms that are in critical areas of need have an edge over foreign firms operating in the country through product importation.
“Nigeria is no longer going to be a dumping ground for fake and substandard products. I plead with Nigerians to cooperate with government, as hard decisions are going to be taken that will move the nation forward. It may be painful at the beginning, but will be very rewarding at the end. Nigeria can no longer be a sleeping giant we have to wake up to move the nation forward,” the president said.
Muda Yusuf, director general, Lagos Chamber of Commerce and Industry told BusinessDay that he sees the president banning the dumping of importation of substandard products which is the greatest problem facing the nation’s industrial sector. He said he also expects to see, in line with the government’s tough policy stance, waivers that should be industry or sector wise in application and not company specific.
An analyst who wants anonymity, explained to BusinessDay, that these decisions, will certainly deny some people their sources of income, though illegal, but there is the need for government to carry everyone along for the policy to succeed.
“I’m excited that the president is taking a wholistic approach to solving the problems of the manufacturing sector on the short, medium and long terms.”
“We expect to see reforms in dawn  stream oil sector, privatisation of refineries,  removal of oil subsidies, privatisation of power and port reforms.
Governor Ibikunle Amosun of Ogun State also speaking said government will continue to support investors with incentives to make industrial land available to companies willing to establish or expand their investment in the state.
President Jonathan, meanwhile, added that the government is taking time to get a strong economic team with focus on power and other infrastructure, without which Nigeria will be going nowhere.
He said government needed to protect local firms, despite the globalisation mode, for Nigeria to really emerge a strong economy by 2020.
According to him, waivers and government patronage are two of the best mechanisms to support and protect indigenous manufacturing firms.
The chairman, May and Baker, Theophilous .Y. Danjuma, said the N4 billion plant has the capacity to produce over 4.5 billion tablets and 37.5 million bottles of liquid preparation annually.
He said the building of this plant was the management’s decision to support the government’s vision 20-2020. Through this, he said, there is going to be more employment opportunities, reduction in the circulation of fake drugs and a general positive boost to the Nigerian economy.
Speaking further, President Jonathan assured that, “The Federal Government will protect local industry, although no country is an island. However, at the same time, for us to claim leadership in Africa, we must be able to produce certain percentage of what we need locally.”
This new focus, Jonathan noted, underscored the government’s efforts at revamping the power sector and other infrastructural facilities.
President Jonathan warned foreign countries and firms to desist from dumping substandard products on the country, threatening that if the practice continued, the government will be forced to take strong and stern measures.
“Such measures may be tough and painful. These measures, which are definitely necessary, may appear painful to the ordinary people, but they are needed if we are to grow the economy,” he said.
He, however, promised that such decisions and policies would not be taken without consultation with the private sector.
The May and Baker factory, which construction commenced in 2008 was designed as an ultra-modern plant and built with modern facilities to meet the standards of the World Health Organisation (WHO), United States Food and Drug Administration (USFDA) and other globally recognised regulatory bodies.
“Both local and international medicine procuring companies currently buying from western and Asian suppliers will now begin to look towards the pharmacentre for their medicines,” Danjuma said.

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