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By Merit Ibe, [email protected]
Former Statistician General of the Federation, Dr Yemi Kale, has charged manufacturers to focus on vital aspects of technology including, patents, branding, sales and marketing due to the value they add to manufacturing.
Kale, Partner and Chief Economist, KPMG, who made the remark, pointed out that more value comes from the technology, patent, distribution, marketing, branding sides of the entire process and not really from the actual manufacturing process.
He emphasised the importance of manufacturing and growing the sector in the country, noting that there are lots of benefits from manufacturing in addition to the fact that it conserves foreign exchange and generates employment among others.
According to him, the objective of manufacturing is not just to create jobs, which is just a by-product or a benefit of manufacturing.
“People manufacture to sell there products. To sell your products, you are competing with other people who are also producing items.
Comparing the situation of the country to global manufacturing practice, he said, “if we check the way global manufacturing happens today, more value comes from the technology, the patent and the distribution, marketing, branding sides of the entire process and not really from the actual manufacturing process.
“That is why you see many happy to outsource the manufacturing process of that country because that is actually the smallest part. I’m not saying Nigeria cannot do that, I’m just saying we have to focus on the others.
“If you are not able to convince consumers that you are producing something that they need, that no other person can do it – that it’s patent, a better quality or you are producing it cheaper, then you will not be able to sell those products and that is where your branding marketing, technology, patent come in.
If you can’t sell those products, at the end of the day, your manufacturing company may collapse for poor or no sale at all.
“So, as you are building your company, focus also on those important aspects because that is where most of the value comes.
“Technology is fast becoming the mainstay and it is developing rapidly. The use of technology will resolve a lot of challenges and create a level play field for businesses particularly the Micro, Small and Medium Enterprises (MSMEs).”
On the exchange rate issue, he said the best way to have a more stable exchange rate in the country is to sell more, whether goods or services.
“Ensure more efficient utilisation of whatever reserve that the country has.”
He emphasised the need to bring in foreign exchange in the country like export and Foreign Direct Investments, to solve the challenge of capital importation and FDI slowing down.
“You have to do things that bring in foreign exchange in the country like export, FDI, until you do that, you will continue to struggle. More efficient way is to focus on policies to bring in more foreign capital.
“A new government is coming in, we’ve heard what they want to do. If those things are done, I think there should be positives for the economy. If these things are done properly, we have a chance to fix the macroeconomic and social imbalances.
“The global economy is also going through a lot, not just Nigeria. People are even talking about the possibility of a global recession.
If the new administration focuses on the things they plan to do, get the right people in the right places, give the people the free hand to do the right things and access the president, so that they can get things moving, there will be a great positive change.
It’s not about selection of a very intelligent minister, it’s about allowing that intelligent minister to work and giving him access to the president, then we might see more positive change.
