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The Nigerian Economic Summit Group (NESG)says the country’s manufacturing sector can resolve its foreign exchange currently battling Nigeria.
NESG, in its report entitled, “Sectoral Reforms and Investments in Nigeria: A focus on the Manufacturing Sector – NESG Manufacturing Report,” said the sector has the potential to create jobs and lift millions of Nigerians out of poverty if the government addresses the current challenges.
It also highlighted the manufacturing sector as one of six sectors that have the potential to create jobs and reduce poverty in Nigeria.
“For the sector to achieve this, the NESG argues that private investment will play a major role. From Nigeria’s recent experience, actual investments in manufacturing are realised when there is an intersection of market opportunities and government support.
“Nigeria’s reliance on imports, its large market and the coming into effect of the African Continental Free Trade Area (AfCFTA) agreement present a huge opportunity for investment in the manufacturing sector, especially in areas such as agro-processing and light manufacturing.
“For these opportunities to fully materialise, crucial actions are required by the federal and state governments, some of which include developing industrial policy and sectoral plans for identified priority areas, ensuring commitment to the implementation of existing plans, addressing the challenge of insecurity, and providing targeted infrastructure.”
The report said already, there are several initiatives and interventions in the manufacturing sector, ranging from import restrictions to the establishment of 43 export processing zones which are currently at different stages of development, according to the Nigerian Export Processing Zones Authority.
In addition, the National Action Committee of the AfCFTA is working to develop Nigeria’s strategy for the AfCFTA, which commenced in January 2021.
These initiatives, and many more, according to NESG, will influence the performance of the manufacturing sector, adding that it has become imperative that there is synergy and consolidation of efforts from all government ministries, departments, and agencies involved in developing the sector.
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