Nigerian industrial stakeholders have underlined the critical need for strategic assistance and Investment to boost the country’s Economy through exports other than oil. The subject of the 36th Annual General Meeting of the Manufacturers Association of Nigeria (MAN), Anambra/Ebonyi/Enugu Chapter, was reviving the economy with an emphasis on non-oil exports powered by manufacturing. Nigeria’s over-reliance on oil has resulted in issues including price volatility, environmental harm, and poor diversification, according to the chapter’s chairperson, Lady Ada Chukwudozie.
In order to boost the industrial sector, she asked the government to enact measures including Tax breaks, simpler financing, and Infrastructure spending. She emphasised the need of Innovation and research in attaining global competitiveness, citing Singapore as an example. A former NIMASA Director-General and keynote speaker, Dr. Dakuku Peterside, said Manufacturing is essential to tackling Nigeria’s economic issues since it can stabilise income, provide jobs, and lessen reliance on oil. To encourage manufacturing expansion, he suggested monetary policy, infrastructure, and power sector improvements.
It would take smart investment & extensive change to revive the economy.
Furthermore, Anambra State Deputy Governor Dr. Onyekachukwu Ibezim emphasised the significance of cooperation among Southeastern states in order to optimise regional advantages. Anambra’s achievements in agricultural advancements, especially in the production of palm and coconut, were cited by him as an example of non-oil economic progress. It would take both smart investment and extensive change to revive Nigeria’s economy through the industrial sector. Nigeria’s industrial industry has historically struggled with issues like dependencies on imports, high production costs, and restricted access to financing.
According to a significant statistic, the manufacturing sector only made up ₦32.346 trillion, or a meagre 9% of the national GDP, between 2018 and 2022. The dependence on imported machinery and raw supplies, which was made worse by the 2023 Naira Devaluation that increased the cost of foreign exchange, is another factor contributing to this poor contribution. Focussing on backward integration, which entails procuring raw materials locally, would be a realistic step towards reviving the industry. In some industries, this strategy has been shown to be effective.
Millions of employment would be created by investing in critical sectors.
Companies with integrated supply chains, such as Chicken Republic, have demonstrated resilience to external shocks and have maintained more consistent prices than their competitors that depend on imported commodities. Despite Nigeria’s enormous potential, heavy manufacturing sectors like petrochemicals, Steel manufacture, and oil refining are still underdeveloped. Despite having the capacity to revolutionise the industry, the Ajaokuta Steel Complex, a vital national resource, has been underutilised for many years. Millions of employment would be created by investing in these sectors, especially in rural areas where they are frequently found, and reducing reliance on imports.
Additionally, Nigeria has remained susceptible to changes in international prices due to its reliance on exporting raw commodities like cocoa rather than processed goods. In contrast, Indonesia produces a substantial amount of income from value-added products by processing almost 80% of its cocoa for export. By developing more robust processing sectors, Nigeria might take a cue from these models and diversify its economy while generating more foreign exchange revenues. Recognising these difficulties, the Nigerian government has implemented a number of programs to help.
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To counteract the effects of excessive Inflation and foreign cash shortages, the government, for instance, has committed to lending manufacturers ₦75 billion at lower interest rates. Together with better financing options and infrastructure, these policies may make it easier for manufacturers to prosper. In conclusion, Nigeria’s manufacturing sector has a great deal of potential to support Economic Growth and diversification, so long as the problems of rising energy prices, unstable foreign exchange, and inadequate infrastructure are addressed. In this transition, a strategic emphasis on value-added processing, heavy industrial expansion, and backward integration will be essential.