Abiodun promises a reliable power source to increase production.

Small and medium-sized businesses and other manufacturers should expect better times as the Ogun State Government has stated its commitment to developing the power infrastructure necessary to provide a steady supply of electricity throughout the State.

Speaking as the special guest of honor at the 38th Annual General Meeting of the Manufacturers Association of Nigeria (MAN), Ogun State Chapter, held at the Conference Hotel in Abeokuta, Governor Dapo Abiodun made the statement.

Abiodun, who was represented by Mr. Tokunbo Talabi, Secretary to the Ogun State Government, claimed that the government is making the most of its position as the state with the largest gas reticulation in Nigeria to address the problem of irregular power supply. He claimed that when the problems of high fuel prices and irregular power supply are adequately addressed, it will prevent the high rate of unemployment and insecurity.

The governor stated: "We cannot behave as if we are unaware of the reality that numerous manufacturing companies that had previously operated in Nigeria have shut down as a result of unstable power supplies and high petroleum product prices, leading to severe unemployment and insecurity.

The Federal Government, led by President Bola Ahmed Tinubu, mustered the courage to address the long-standing issue in the upstream sector of our oil industry through the deregulation policy that resulted in the removal of subsidies. This was done with the determination to change the narrative and refocus the economy for greater performance in the real sector.

Abiodun urged MAN to work with the federal government on projects they know will have a beneficial impact on the industry without holding back, and he urged organization members nationwide to back the current federal leadership.

Mr. Bismarck Jemide Rewane, a renowned economist and managing director/CEO of Financial Derivatives Co. Ltd., spoke as the event's guest lecturer and cited the Covid-19 pandemic, the Russia-Ukraine war, and forex scarcity as some of the reasons why the manufacturing sector has largely underperformed in the last five years.

Rewane noted that the current administration at the federal level has taken a brave step in adopting several major market reforms, reducing the level of market distortion in the economy among other things, but stated that the country is at a crossroads as the naira is undervalued by 32%.

The eminent economist advised the federal government to keep up with reforms, such as rescheduling its debts, institutional reforms, increasing private investment in the power sector, listing the catalyst for growth, road concessioning, putting the 2023 Electricity Act into effect, digital innovation, boosting investment flows, paying at least N75,000 as minimum wage, and preventing revenue leakages, among others.

The immediate implementation of the dual policies of Naira devaluation and subsidy removal without putting in place appropriate buffers for all sectors of the economy has caused inflation levels to skyrocket and has put enormous strain on the manufacturing sector, according to the Chairman of MAN, Ogun State Chapter, Mr. George Onafowokan.

Onafowokan went on to discuss the high costs of power, high interest rates on loans, problems with the post office and customs, as well as multiple taxes, as barriers to the necessary growth in the sector. He urged government at all levels to be committed to enacting policies that encourage export and local company survival, make it easier to qualify for loans from government financial institutions, and implement other real sector-friendly fiscal and monetary policies to revise these costs.