Multiple Taxes, High-interest Loans Killing Manufacturers, Says Makoju
Group Managing Director of Dangote Cement, Joseph Makoju, has revealed why many investors will not put large amount of money into the manufacturing industry.
Apart from the long gestation period before invested funds could be recouped, he said non-availability of low-interest loans was discouraging many investors from injecting huge capital into the manufacturing industry.
He also identified harsh business environment and multiple taxes as other hindrances against the growth of the sector.
Speaking in Osogbo, Osun State capital, shortly after he presented a car prize to the winner of Dangote Bag of Goodies Promo, Alhaja Limota Adetoro, a petty trader from Ikirun, Makoju however called on government and stakeholders to address the challenges for steady growth of the sector.
He said, “There are many challenges facing the manufacturing sector in the country. The environment recently has been quite difficult. The issue of low-interest funding for the manufacturing sector is still a big challenge. You will find out that the gestation period to recover investments is long.
“With that, you cannot put large capital into starting such industry. Banks in Nigeria today are still not in a position to give special low-interest loans. To me, that is one of the biggest challenges.”
“In terms of the operating environment, it is getting a bit harsher; my concern is for the small-scale industries facing the issue of multiple taxes.”
He also said, “There is proliferation of taxes, ranging from local government to state government taxes. I quite agree that we need to improve tax collection but not to the point of destroying the sectors of the economy that would create the wealth you will tax. If you overtax, these industries would not grow and our economy would be underdeveloped.”
Commenting on the promo, Makoju said it was in line with the philanthropic gesture of Alhaji Aliko Dangote, meant essentially to motivate consumers at the grass roots.
Reacting, the winner of the star prize, Alhaja Adetoro, commended the transparency of the management of Dangote Group in handling the promo.