The Federal Government has unveiled plans to increase local Manufacturing content to 80 percent by introducing the National Strategy for Competitive Raw Material and Product Development in Nigeria. Minister Uche Nnaji, who is in charge of Innovation, Science, and Technology, recently shared this information at the National Consultative Committee on Global Competitiveness in Raw Materials and Product Development conference in Abuja. Nnaji, in an official statement from the Federal Ministry of Information and National Orientation’s X account, emphasised that the plan aims to create job opportunities and boost domestic production by increasing local content in manufacturing.
He believes that increasing the amount of local content will help Nigerian raw materials, products, and services gain worldwide recognition, thus enhancing the country’s global competitiveness. As stated in the federal government’s speech, implementing the National strategy for competitiveness in Raw Material and product development will result in the creation of 4.4 million jobs. Following the National strategy will increase employment opportunities and diversify the economy. Likewise, the focus on manufacturing domestic content will aim to reach 80 percent, allowing for global recognition of the country’s products and materials. This will ultimately lead to increased global competitiveness.
Local produce is vital for national economic independence and growth.
Also, the minister emphasised the importance of global competitiveness in meeting international standards for goods and services, stressing the need for the nation to utilise innovation, science, and Technology to succeed in this endeavour. His main focus is promoting the country’s global competitive edge by diversifying the Economy through Investment in innovation, technology, research, infrastructure, and human capital development. The theme, “Harnessing Local Resources for Diversifying Nigeria and Enhancing Global Competitiveness”, reflects this agenda. He emphasised the importance of global competitiveness for a strong economy, emphasising the need to produce high-quality goods and services that meet international standards and ultimately increase citizens’ real income in the long term.
In addition, local manufacturing content is vital for a nation’s economic self-sufficiency and growth. By utilising domestically sourced raw materials and locally produced components, countries can reduce their reliance on imports and strengthen their industries. This leads to job creation, increased investment, and a more sustainable economy. Supporting it not only boosts the competitiveness of domestic businesses but also promotes Innovation and technology advancement. Ultimately, it helps build a more resilient and diverse economy that benefits businesses and the community.
Sufficient local produce support will enhance job creation and development.
It is essential to utilise the many advantages of the industry content to create job opportunities that will help reduce Unemployment rates and improve living standards for the people in the country. Additionally, it drives the development of domestic industries, promoting innovation and technological advancement. This, in turn, enhances the country’s Trade balance by decreasing reliance on imports and increasing exports, thereby strengthening the overall economy. Moreover, supporting domestic content promotes Sustainable Development by efficiently utilising the country’s natural resources and reducing the environmental impact of transportation and production processes.
However, as it has a lot of opportunities, the federal government need to provide incentives like Tax breaks and grants for research and development to support indigenous manufacturers. Establishing specialised industrial zones with modern facilities can attract domestic and foreign investments, creating a conducive environment for industry growth. Encouraging partnerships between the government, private sector, and academic institutions can drive innovation and skills development in the industry. Furthermore, they can invest in training programs to upskill the workforce for modern manufacturing processes, which is essential to ensure the competitiveness of domestic manufacturers in the global market.
Related Article: NBCC seeks boosts for manufacturing sector
An excellent example of successfully boosting domestic manufacturing content can be observed in the agricultural sector. They can further invest in domestic processing plants for agricultural produce, adding value to raw materials, creating job opportunities, and reducing post-harvest losses. This model can be replicated in other sectors, such as textiles and electronics, ensuring that locally manufactured goods meet international standards and are competitive in the global market. Countries can strengthen their economy, promote sustainable development, and enhance global competitiveness by promoting a robust domestic manufacturing ecosystem.