Throughout quite some time, Nigeria’s manufacturing industry has been significantly dependent on imported raw materials, and current figures indicate that this dependence is only growing. The value of imported raw materials was N649.21 billion, up 23.9 percent year over year. In the third quarter of 2022, according to the National Bureau of Statistics, the increase in raw material imports is a worrying trend for the economy of the nation since it shows that the manufacturing sector in Nigeria is not self-sufficient and unable to supply the raw materials it requires. The decrease in raw material items exports in Q3’22 further emphasizes the difficulties the industry is facing.
According to Investors King, the manufacturing sector is crucial for any economy since it fosters innovation, job creation, and economic progress. Yet, depending so heavily on imported raw materials might leave the industry exposed to outside shocks like price changes and supply chain hiccups. The Nigerian government must put laws and incentives in place to stimulate the local production of raw materials in order to overcome this problem. To expand the capacity of local industry, this might include tax advantages, subsidies, and spending on research and development.
Its a must for government to support the local production of raw materials.
The government might encourage regional companies to expand operations upstream in the supply chain to generate the raw materials they require, thereby promoting the growth of backward integration. This would increase employment and lessen the nation’s reliance on imported raw resources. Nigeria’s manufacturing sector’s persistent reliance on imported raw materials is a worrying trend that requires immediate attention. The government must implement clear policies to encourage domestic raw material production and lessen the reliance of the industry on imports in order to achieve sustainable economic growth and development.
A worldwide e-commerce platform called Picodi.com reported that the cost of the essential food products a typical Nigerian family needs to survive increased by 17.5% from N40,980 in January 2022 to N48,130 in January 2023. According to the research, this sum is 60.4% more than the nation’s monthly minimum net wage of N30,000, meaning that even the minimum wage is unable to pay for such a basic basket of goods. This shows that the lowest paid workers’ earnings climbed more slowly than food prices. The report’s list of staple foods includes milk, bread, grains, eggs, cheese, beef, fruits, and vegetables. According to the survey, just seven of the 67 nations covered in the ranking had minimum wages that had not increased since January 2022, with Nigeria coming in last place out of 67 other nations.
A total of 1.3 billion litres of petrol has been imported into the country.
According to Investors King, the consequences of the Russian-Ukrainian war caused Nigeria’s inflation to soar to a 17-year high last year. The National Bureau of Statistics’ data reveals that in December 2022, the country’s inflation rate reached 21.34 percent, which was the highest level in 17 years. According to the most recent Nigeria Development Update report from the World Bank, Nigeria’s fast inflation rise has reduced the N30,000 minimum wage by 55% and increased the number of people living in poverty by an anticipated 5 million by 2022. The paper also notes that greater inflation in 2022 is thought to have contributed to the poverty of an extra five million Nigerians between January and September of that year, primarily due to rising costs for local staples including rice, bread, yams, and wheat, particularly in urban areas.
Shubham Chaudhuri, the country director for Nigeria at the World Bank, claims that the nation, which has been riding the oil price movement, is now at a crucial crossroads. He says Nigeria has the option to carry out important macroeconomic and structural reforms that can lessen its vulnerability to crises and boost growth. By doing this, Nigerians as a whole will have improved life outcomes, higher per capita incomes, and sustained poverty reduction. Ayo Kadoso, General Coordinator of the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s South-West area, reports that 1.3 billion litres of gasoline had been brought into the nation overall. This information was made public during a trip to the Ijegun tank farms in Lagos by the Federal Government’s task force team on fuel price compliance. The 1.3 billion litres of gasoline are divided between 690 million litres in marine/offshore stockpiles and 580 million litres in interior depots.
Members who fail to comply with the new price would be sanctioned.
The Independent Petroleum Marketers Association of Nigeria’s National Controller of Operations, Mike Osatuyi, also discussed the new pricing strategy and stated, “All of my members are going to load at N172 per litre”. Yet, our main concern is how the government will continue to provide supplies to the depot while maintaining the stated price control. Nonetheless, I want to think that the administration is committed to continuing to bring in supplies. All IPMAN members were given a warning by Osatuyi to abide by the new price since doing otherwise would result in sanctions.
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Manufacturing sector relies on importing – Our manufacturing sector has been heavily reliant on imported raw materials. – Express your point of view.
The manufacturing sector needs the local raw materials to get finished goods produced. If the raw materials are gotten from our local farms, it will help yield a very good production cycle.
For a considerable amount of time, Nigeria’s industrial industry has been largely reliant on the country’s importation of raw materials.
It will be better if we don’t relie too much on imported material we should try and be getting things done with our local material to make use of
The difficulty that the industry is having to deal with is further highlighted by the fact that exports of raw material items decreased during the third quarter of 22.
Osatuyi issued a warning to all of the IPMAN members, stating that failure to comply with the new pricing would result in punishment, and they all received the notice.
This may involve tax breaks, subsidies, and increased investment on research and development in order to boost the capabilities of the regional manufacturing sector.
In order to find a solution to this issue, the government of Nigeria needs to enact new laws and institute new incentive programs that would encourage the domestic production of raw materials.
In order to be able to produce finished items, the manufacturing industry needs access to the local raw materials. In the event that the primary components are sourced from our neighborhood farmers
Our primary concern is how the government will continue to supply the depot with supplies while still adhering to the established pricing regulation.
We have low numbers of manufacturing com play making it insufficient for a county and unable to supply the raw materials it requires. The manufacturing sector need funds and necessary support. Something should really be done about it.
The local raw resources are essential for the industrial sector to manufacture final goods. To get a solid production cycle going, we need to source our raw materials from nearby farmers.
Many industries present in Nigeria import their raw materials due to insufficiency in our local market but if the Nigerian government can put laws and incentives in place to stimulate the local production of raw materials this problem will be overcome.
The local production of raw materials needs to be developed in order to atone for constant importation of raw materials by industries for use. The Nigerian government must put laws and incentives in place to stimulate the local production of raw materials in order to overcome this problem.
The local raw resources are essential for the industrial sector to manufacture final goods. The production cycle will be more successful if the raw materials come from nearby farms.
The manufacturing sector in Nigeria has relied heavily on foreign imports of raw materials for a long period of time.
Our manufacturing sector has been heavily reliant on imported raw materials. This country really has a long way to go. We so much depend on importation
The raw materials used by many Nigerian companies are imported because domestic supply is inadequate, but this issue can be solved if the Nigerian government implements policies and incentives to encourage domestic raw material production.
The problem of not getting raw material for the manufacturer industry is very bad and this is the major reason why things are very costly in the country and this is really affecting the economy in a bad way.
As a result, the nation’s dependency on imported raw materials would decline and employment would rise.
In order to expand the manufacturing sector’s capacity locally, this may entail tax cuts, subsidies, and greater R&D spending.