By Merit Ibe, ibe.merit@yahoo.com
Manufacturers in the country have decried the low level of industrialisation in the country, stressing the dream of being counted among the big manufacturing powers of the would remain an illusion until the major constraints that affect ease of doing business are resolved.
For the operators, achieving a stable rapidly-growing economy would require taking head-on, the daily bottlenecks confronting business owners within the manufacturing sector, considering its active inter-linkages with other key sectoral drivers of the economy.
The stakeholders, who spoke on the sideline of the Manufacturing and Equipment EXPO West Africa 2023, in Lagos, themed: “The Future of Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria,”also attributed the 10 per cent contribution of the manufacturing sector to the Gross Domestic Product (GDP), to the low level of industrialisation of the country.
President of the Manufacturers Association of Nigeria (MAN), Francise Meshioye, had argued that the growth of industrialisation in Nigeria has been at its very low ebb and undesirable considering that manufacturing is the bedrock of any thriving economy and major provider of employment and economic growth. He lamented that the sector could become extinct on the back of rising cost of production, owing to scarce and unavailable manufacturing inputs that continue to shrink profitability and threaten the existence of the critical sector of the economy.
He said more worrisome is the fact that the sector that should propel job creation, productivity and economic growth is enmeshed in a series of challenges that constantly limit its contribution to the GDP.
“Such challenges as epileptic power supply, insecurity, inadequate infrastructure, shortage of foreign exchange and naira depreciation are prevailing issues that are impacting negatively on the sector, causing low levels of industrial manufacturing and hampering economic growth in the country.
“The theme of this exhibition is informed by the unprecedented rate in which our world is changing in terms of innovative technologies, shifting customer expectations, as well as increasing social awareness of gender equity and restoration of previously marginalized communities.
Meshioye pointed out that if manufacturers can successfully assimilate advanced technologies into their systems, existing and prospective industrialists can expect to realize even greater revenue and profits from their investments.
“Improved political stability; growing investment prospects; business-friendly trade agreements; Industry 4.0; enforcement of policies empowering start-up and female manufacturers; in addition to governmental funding solutions, to name a few, are pivotal factors demonstrating a positive and thriving manufacturing future. Industry 4.0 remains a considerable opportunity for African manufacturers, ultimately giving the continent a cutting edge over the global economy.”
On his part, Director General of MAN, Segun Ajayi-Kadir, noted that Nigeria’s path to economic growth, industrialisation and sustainable development has been compromised by inadequate attention to the numerous pressing challenges of manufacturers, who are meant to be the propellers of its long-term economic agenda.
He appealed to the government to support manufacturers by creating a more conducive environment for existing and prospective industries to thrive and contribute to economic growth.
In his address, Minister, Federal Ministry of Innovation, Science and Technology, Uche Nnaji emphasised the need to recognise the relationship between sustainable market, demand-driven research, societal development for economic growth and industrialisation.
He said industrialisation is one of the indices of measuring the development of nations and the survival of manufacturing industries is dependent largely on the availability of raw materials. “With more than half of Nigeria’s revenue derived from oil exports, diversification from the mono oil economy is imperative for the nation to achieve and maintain a solid sustainable economic base.
Nnaji reiterated his Ministry’s determination and commitment to support industrialisation by focusing on demand-driven research and development by the agencies under the ministry.
“The Raw Materials Research and Development Council (RMRDC) is exemplifying this by its adherence to the development and promotion of pilot agricultural and mineral raw materials as well as process equipment that meet the requirements of manufacturing industries.
He said as the country embarks on the implementation of the African Continental Free Trade Agreement (AfCFTA), there was the need for consistent engagements amongst stakeholders in the raw materials and manufacturing value chain of the economy to avoid overbearing dumping of sub-standard raw materials and products on our shores from various sources across the world.
“In line with the strategic implementation of the Presidential Executive Order No. 5, my Ministry, through RMRDC, has commenced the process for the establishment and replication of the Centre across the six geo-political zones to allow for even development of resource-based industrialisation and encourage local production of raw materials where Nigeria has the wherewithal and competitive advantage over and above other nations of the world.
“It is acknowledged that one of the important prerequisites for the economic well-being and prosperity of any nation is sustainable development of industry.
”It is industry that produces consumer and capital goods, creates new products and processes which generate new employment opportunities. It also provides, in the process, unlimited access to science, technology and innovation for the populace. I strongly advocate a strong Triple Helix initiative to deepen the collaboration and linkage between the Manufacturers Association of Nigeria (MAN) and the agencies under my Ministry. The need for partnership, such as the one between the Manufacturers Association of Nigeria (MAN) and Raw Materials Research and Development Council (RMRDC), further underscores the challenges of competition in the industrial place arising from the ongoing globalization of world economies.