National Wire About Nigerians, Nigerian Business and Other Stories
… as 335 others becomes distressed due multidimensional challenges
The Manufacturers Association of Nigeria (MAN) has expressed concerns that 767 manufacturing companies shut down in 2023, as 335 others became distressed due to multidimensional challenges besetting the sector, warning that the implementation of the newly introduced Expatriate Employment Levy (EEL) will aggravate the already distressing situation.
EEL is a mandatory annual levy of between $10,000 and $15,000 imposed by the Federal Government on employers hiring expatriate workers, effective from 15th March 2024.
Director General of MAN, Segun Ajayi-Kadir, in a statement made available to Vanguard on Tuesday.
His words: “The imposition of EEL poses a potential impact on the manufacturing sector and the economy at large. This will in turn mark an unwarranted and unprecedented addition to the cost of doing business in Nigeria, especially to manufacturers.
“The manufacturing sector is already beset with multidimensional challenges. “In 2023, 335 manufacturing companies became distressed and 767 shut down. The capacity utilization in the sector has declined to 56%; interest rate is effectively above 30%; foreign exchange to import raw materials and production machine inventory of unsold finished products has increased to N350 billion and the real growth has dropped to 2.4%. Expatriates in Nigeria currently pay more than $2000 for CERPAC.”
