Mohammed Shosanya
The Nigerian Economic Summit Group (NESG),has advocated the need for the revitalisation of Nigeria’s manufacturing sector.
The group expressed this at a pre-summit webinar ahead of the 30th Nigerian Economic Summit, focusing on the theme: “Reversing the Decline: Strategies for Stabilising Nigeria’s Manufacturing Sector.”
The event gathered key stakeholders to discuss solutions for halting the decline in Nigeria’s manufacturing industry and examining how current economic reforms impact the sector’s operations.
Speaking,Dr. Muda Yusuf, Thematic Lead of the Manufacturing Group, who represented Engr. Mansur Ahmed, Private Sector Co-Chair of the Manufacturing and Mining Policy Commission (MMPC) Steering Committee, highlighted the significant role of the manufacturing sector in Nigeria’s development.
According to him,despite its potential, the manufacturing sector faces numerous challenges such as inadequate infrastructure, fluctuating exchange rates, and poor access to finance.
He emphasised the import of industrialisation in driving economic growth, as seen in Europe and North America, and stressed the need for a thriving manufacturing sector supported by innovation, infrastructure, and strong economic policies.
In his remarks,Mr. Olakunle Alake, Vice President of Dangote Industries Limited and NESG Board member, said that Nigeria’s manufacturing sector, which contributes only 8% to the Gross Domestic Product faces stagnation due to issues like erratic power supply and inadequate infrastructure.
He stressed the need for collaboration between the public and private sectors to develop policies that stabilise and rejuvenate the sector.
He also noted that prioritising Sustainable Development Goal (SDG) 9, which focuses on building resilient infrastructure and fostering innovation, is crucial for achieving broader economic and social goals.
Lumun Amanda Feese, Facilitator of the Manufacturing and Mining Policy Commission, delivered a presentation on “Re-imaging Industrialisation: Leveraging Nigeria’s Natural Resources to Accelerate Industrialisation.”
Feese suggested that Nigeria could learn from countries like Sweden, Finland, Australia, and the USA, which have successfully used their natural resources to drive industrialisation through innovation and technology.
She underscored the need for robust public-private partnerships and collaboration among stakeholders to ensure the sector’s growth.
Soromidayo George, Director of Corporate Affairs and Sustainability at Coca-Cola Hellenic Bottling Company Plc and Chairman of the Non-Alcoholic Drinks Sector of the Manufacturers Association of Nigeria, discussed the impact of recent economic reforms on the Fast-Moving Consumer Goods (FMCG) industry.
She highlighted the sector’s potential to reduce poverty by creating jobs and promoting economic diversification.
She advocated the urgency of implementing effective strategies and policies that align with Nigeria’s cultural context and are backed by data.
Chijioke Uwaegbute, Partner & Tax Leader at PwC Nigeria, offered strategic recommendations to stabilise the manufacturing industry.
He advocated a temporary freeze on increasing levies and tax rates for one to two years to help the sector recover.
He also called for simplifying processes for accessing export expansion grants and other incentives, noting that some manufacturers currently face tax rates as high as 45%.
Afolabi Olorode, Acting Managing Director of FBN Quest Merchant Bank, spoke about enhancing financial resilience to mitigate risks associated with foreign exchange volatility, scarcity, and inflation.
He stressed the importance of better capitalisation for manufacturing companies to balance debt pressures and suggested that Nigeria’s relatively low labour costs offer an opportunity to develop a skilled workforce in technical production and manufacturing.