ASABA - The average capacity utilisation of industries in Edo and Delta State dropped from about 52 percent in the last two year to 48 percent this year.

Mr. Emwinoma Osadolor, Chairman, Edo/Delta branch of the Manufacturers Association of Nigeria (MAN), blamed the situation on the lack of infrastructure and high cost of energy.

He told newsmen in Asaba that the drop in capacity utilisation was also due to low stock of inventory, high interest rate, and inconsistency in government policies. Osadolor said apart from the short comings experienced by the association, multiplicity of taxes and levies were other factors affecting industrial production in the two states.

The chairman said that addressing the challenges posed by policy inconsistency and the creation of market for industrial products, would help to ameliorate the problems in the manufacturing sector. He said policies should be consistent, and that the issues of local content and integration should be pursued with vigour.

“Government should also implement policies that will improve infrastructure in the country, especially power supply,” he said.

Osadolor said that addressing these challenges would make the manufacturing sector competitive in the global economy.

He said the association was embarking on a continuous advocacy on the need for government to improve on infrastructure and remove other impediments to business growth.

Osadolor advised government to streamline the number of taxes and levies paid by companies, as well as stop the use of consultants for tax collection.

He advocated for improvement on the level of power generation and reduction in the interest rate charged by banks.

The chairman suggested that the Bank Industry should be adequately funded, so that it could carry out its statutory function of supporting the industrial sector with credit facilities.

He said industrial layouts should be carved out, while the national gas policy should be implemented, to encourage investment in the gas sector, and boost industrial usage of gas.

He said the Edo/Delta branch of MAN had more than 50 members, and expressed optimism that if the 2008 budget was properly implemented, it would help to boost industrial growth in the two states.