Posted on 06 Jul 2015
Persuade contractors to use local steel products, manufacturers urge FG
Nigerian steel makers have urged the Federal
Government to persuade contractors operating in the country to use
locally made steel products.
Members of Steelman sub-sector of the
Manufacturers Association of Nigeria made this plea in their sector
report released recently to Real Sector Watch.
“We believe there may be need to ban importation of iron rods so as to encourage use of local products,” said the group.
The sub-sector also requested the government to
reconsider channelling concessions to local investors instead of
contractors which import finished goods into the country.
Members of this group also said that government
should intervene by boosting the sub-sector through funding to save
existing manufacturing firms, while also urging the Muhammadu Buhari-led administration to increase the Bank of Industry’s financing to iron rods and rolled products.
The group collectively agreed that there is no
need of granting waivers for iron rods and other rolled products made in
the country, stressing that the Federal Government should benchmark the
sub-sector on international market pricing on gas.
“Being one of the major users of electricity in
Nigeria, we have decided to champion the fight against increase in
electricity tariff to as much as 45 percent depending on the affected
area,” said the group.
“Our members are in serious crisis which, if not
tackled immediately, may lead to death of many companies which are
already in comatose,” the group further said.
The steelman sub-sector is part of the Basic
Metal, Iron and Steel and Fabricated Metal Products Sectoral Group led
by Oluyinka Kufile, chairman of Qualitec Industries Limited.
