Senate: N2.5tr capital expenditure’ll rejuvenate manufacturing sector
The National Assembly has assured the Manufacturers Association of Nigeria (MAN) that significant portion of the N2.5 trillion set aside for capital expenditure in the 2017 budget will be injected into expanding the capacity of the manufacturing sector.
Senate President, Bukola Saraki said this would be achieved through legislation that will make it compulsory for the procurement of Made-in-Nigeria goods, by government Ministries, Departments and Agencies (MDAs).
Saraki gave the assurance in Lagos during the 45th Annual General Meeting (AGM) of MAN. He said economic growth can only be sustainment of the Public Procurement Act.
According to him the Act makes made-in-Nigeria products, the first option of purchase in any government transaction. He noted that a strict application of this law will ensure that a substantial percentage of the N2.5 trillion set aside for capital expenditure in the budget is retained in the local economy for our manufacturers.
Represented by the Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Adebayo Ibrahim, he said: “I believe strongly that for Nigeria to maintain the path of economic growth, private sector investment must be encouraged to play a central role in our economic recovery efforts. After five consecutive quarters of contraction, the Nigerian economy grew by 0.55 per cent in the second quarter of 2017. This is reflective of the improved performances of certain key aspects of our economy in response to concerted government policies and interventions.”
He said legislature would ensure that the economy cease from being import dependent, design economic growth pathway, while it would ensure that Small, Medium, Enterprises (SMEs) have access to finance. He also pledged effective legislation to reduce importation and other challenges in the manufacturing sector.
Source: The Nation