How to revitalise Nigeria’s manufacturing sector — NESG, stakeholders

The Nigerian Economic Summit Group (NESG) and other stakeholders held 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 examine how current economic reforms impact the sector’s operations.

The target was to set the stage for actionable policy and non-policy measures to address both immediate and long-term challenges.

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.

He said that despite its potential, the sector faces numerous challenges, such as inadequate infrastructure, fluctuating exchange rates, and poor access to finance.

Dr. Yusuf emphasised the importance 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.

Mr Olakunle Alake, Vice President of Dangote Industries Limited and NESG Board Member, pointed out that Nigeria’s manufacturing sector, which contributes only 8% to the GDP, faces stagnation due to issues like erratic power supply and inadequate infrastructure.

He harped on the need for collaboration between the public and private sectors to develop policies that stabilise and rejuvenate the sector.

Mr Alake 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.”

She 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.

Feese emphasised the need for robust public-private partnerships and collaboration among stakeholders to ensure the sector’s growth.

Chijioke Uwaegbute, partner and tax leader at PwC Nigeria, offered strategic recommendations to stabilise the manufacturing industry.

He advocated for a temporary freeze on increasing levies and tax rates for 1 to 2 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 per cent.

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 highlighted 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.

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