CBN restates support for manufacturers

The Governor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, has restated the  bank’s resolve to encourage firms willing to invest in the manufacturing sector to grow the economy.

Emefiele made the remark in Lagos, at the signing of the Memorandum of Understanding (MOU) between Procter & Gamble (P&G) and Colori for the local production of its oral care products, Oral B, as part of efforts to localise production in Nigeria. The partnership represents a new investment of $35million.

According to him, the manufacturing industry in Nigeria remained a key focus of the efforts by the monetary and fiscal authorities towards driving recovery of the Nigerian economy, following the downturn due to the impact of the COVID-19 pandemic, hence the push for import substitution.

To match its words with action, he said the CBN set up a N1 trillion facility in April 2020, aimed at supporting growth and expansion of manufacturing firms in Nigeria. He disclosed that close to N300billion of the amount had so far been disbursed to 76 manufacturing firms, which would boost local manufacturing across critical sectors over the next few years.

“Our efforts have aided the recovery of the manufacturing sector as reflected in the Purchasing Managers Index which shows that the index on manufacturing activities rose from a low of 41 points in May 2020 to 49.6 points in December 2020,” Emefiele added. While admitting that growth remained fragile, the CBN governor noted that driving further growth of the economy would require that the Bank and the fiscal authorities continue to support more investments that will enable the growth of the manufacturing sector in Nigeria.

Emefiele therefore, encouraged multinational firms to emulate Procter and Gamble by considering the opportunities that Nigeria offers and begin to set up their manufacturing lines in Nigeria. He also expressed belief that this move would help to enable the country build a more resilient economy that creates jobs and supports skills transfers for the nation’s growing and youthful population.

Given the size of the Nigerian population and market, he asserted that Nigeria offered significant advantages for multinational manufacturing firms that choose to invest in domesticating their productions lines in Nigeria.