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The Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), has emphasised that the $1trillion Gross Domestic Product (GDP) target can be achieved by 2030 with necessary structural reforms and strategic investments in the manufacturing sector.
Director General of the Chamber, Olusola Obadimu, stated this at the 2024 National Conference of the Commerce and Industry Correspondents Association of Nigeria (CICAN) with the theme, “Manufacturing: $1 trillion GDP Target by 2030: Realities and Possibilities,” in Lagos.
Obadimu, who was represented by William Inya, a Research Officer at NACCIMA, said the manufacturing sector which has the potential to enable Nigeria achieve the target of $1 trillion economy, can boost the economy significantly with improved infrastructure, enhanced access to financing and policies that promote local production.
This is even as former chairman of the Non-Metallic and Mineral Products Sectoral Group/Council Member of Manufacturers Association of Nigeria (MAN), Mr. Afam Mallinson Ukatu, called for more investment in the non-metallic mining sector, noting that if well harnessed, the sector could lift Nigeria out of economic quagmire.
According to Obadimu the manufacturing sector, which currently contributes approximately 9 percent to Nigeria’s GDP, has the potential to be a game-changer. “With improved infrastructure, enhanced access to financing, and policies that promote local production, this sector could significantly boost economic output. “Countries with similar aspirations have leveraged manufacturing to increase their GDP contributions to as much as 20–30%, creating jobs and fostering economic inclusivity.”
He however highlighted the several challenges that could continue to hamper the achievement of the set target.
“The infrastructure deficit, which currently stands at 35% of GDP, undermines efficiency and increases production costs. Inadequate power supply, estimated to cost businesses over $29 billion annually, further complicates the operating environment. “Additionally, recent fluctuations in the naira and inflationary pressures exacerbate these issues, emphasizing the need for robust and stable macroeconomic policies,” he stated.
The NACCIMA boss expressed the firm belief that a thriving manufacturing sector is pivotal for Nigeria’s economic transformation.
He said: “We urge the government to prioritize investments in transportation, energy and technology to reduce production costs; Develop more industrial parks and special economic zones to enhance economies of scale and attract foreign investment; Invest in local raw material sources to minimize reliance on imports and enhance competitiveness; and Equip the workforce with the skills necessary for modern manufacturing processes.
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“Achieving a $1 trillion GDP by 2030 is ambitious but within reach if we align our priorities, forge public-private partnerships and implement pragmatic policies.”
For Ukatu, “it is an opportunity to chart a bold path forward as we face both opportunities and challenges within our dynamic sector.”
Moreover, he said until the country looks away from the oil sector, it will be very difficult to come of the woods, adding that it costs less to invest in the mining sector than in the oil sector, which has more returns on investment.
Ukatu urged the Federal Government of Nigeria to urgently rework the policies of the sector, which has gone obsolete to make it more investment friendly and attractive.
However, the mining sector and its values chain can generate over 15 million jobs (direct and indirect jobs), thereby addressing the ever-growing unemployment ravaging the country.
“Worthy of note is that innovation, technology, and sustainability are key drivers of growth, and as the government shifts focus towards economic diversification, our industry stands poised to play a pivotal role in Nigeria’s future development. We eagerly anticipate the ideas and strategies that will emerge from today’s discussions, particularly on global trends that can drive transformation in industrial activities.
“Our sector is a critical contributor to national development, especially in addressing Nigeria’s housing deficit, currently estimated at 28 million. This gap presents a significant opportunity for members in the production of essential materials needed to close the housing shortfall.
“We must align our efforts with national strategies to help overcome this challenge, a task we believe today’s deliberations will greatly contribute to.
“Irrespective of the various obstacles we face, ranging from infrastructure deficits, regulatory burdens, threat of substandard imports, massive invasion of the sector by some foreigners who connive with some unpatriotic Nigerians to disorganize the sector, we remain resolute. “Our industry has shown resilience, and with pragmatic solutions, and we must be prepared to compete both locally and across the continent. Together, we can drive our sector toward greater achievements and ensure our competitiveness on a global scale,” he emphasized.
He pointed out that government needs to look into multiple taxes and how it is administered, stressing that the three tiers of government should encourage more people to participate in the mining and give others the opportunity to come up, knowing what is needed to boost the country’s GDP.
