Government plans incentives for local manufacturing firms

Government plans incentives for local manufacturing firms

President Goodluck Jonathan of Nigeria says industry-focused incentives and waivers would soon be unfolded in support of local firms.

The President made the promise at the inauguration of the four billion Naira May and Baker Pharma Centre in Ota, Ogun.

He said the government was prepared to roll out policies, including waivers that would ensure that local manufacturers that were in critical areas of need had an edge over foreign firms on importation of products.

Growing the economy

The President said the government needed to protect local firms, despite globalisation, for Nigeria to really emerge a strong economy by 2020.

According to him, waivers and government patronage are two of the best mechanisms to support and protect indigenous manufacturing firms.

“The government will protect local industries, although no country is an island.

“However, at the same time, for us to claim leadership in Africa, we must be able to produce certain percentage of what we need locally.”

Jonathan said that the new focus underscored the government’s efforts at revamping the power sector and other infrastructural facilities.

He warned foreign countries and firms that Nigeria would no longer be dumping ground for substandard products.

The President said that the government would soon be taking strong and harsh measures which might be painful at the beginning.

“Such measures may be tough and painful. These measures, which are definitely necessary, may appear painful to the ordinary people, but they are needed if we are to grow the economy,” he said.

He, however, promised that such decisions and policies would not be taken without consultation with the private sector. 

Increasing drug production

Jonathan said that the plant had the capacity to produce over 4.5 billion tablets and 37.5 million bottles of liquid preparation annually.

“Till date, the company has committed over four billion Naira to the project with a substantial part of it coming from bank financing and shareholders’ fund.”

The President said that the project was the first of its kind in West and Central Africa and that the company would become a gateway to international business.

According to him, it will also help conserve the country’s foreign exchange.

“Both local and international medicine procuring companies currently buying from western and Asian suppliers will now begin to look towards the pharmacentre for their medicines, “he said.

The President said that Nigeria and Foreign brand owners could also take advantage of the facility in manufacturing their pharmaceutical products.

He said that the brand owners could avail themselves of third party manufacturing, loan license production and other forms of partnership and collaboration with the company.

The plant

The chairman of the company, Retired Lt.-Gen.  T.Y Danjuma, said that the plant had the capacity to produce over 4.5 billion tablets and 37.5 million bottles of liquid preparation annually.

He said the building of the plant was the management’s decision to support the government’s visions 20-2020.

Danjuma said that the company would provide employment opportunities, reduce circulation of fake medicines and generally boost the Nigerian economy.

Th factory, whose construction started in 2008, was designed to meet the standards of WHO, United States Food and Drug Administration (USFDA) and other global regulatory bodies.

NAN/Williams