Nigeria’s manufacturing sector has been described as one of six sectors that have the potential to create jobs and reduce poverty. Actual investments in manufacturing are realised when there is an intersection of market opportunities and government support. While foreign exchange challenges prevailed in 2021, operators are seeking government’s intervention in policies that will revamp the sector. FEMI ADEKOYA writes.
While merely coping isn’t enough, to thrive and grow, companies must do more than cope. Their investors, employees, partners, and suppliers expect more — so, far more importantly, do their customers. Despite economic recovery, the base effects have continued to impact household incomes, forcing manufacturers to adjust offerings and preferences to the available market. With the exception of essential items, demand for manufactured goods has been slow.
He added that the slow growth of the sector as a whole is attributable to a myriad of factors including infrastructural deficiency, insecurity, global and domestic supply chain disruptions, foreign exchange liquidity, weak consumer spending and high operating costs. Some of the major constraints they asked the government to address included low FX supply and poor electricity to the real sector, challenges at the country’s seaports, and low patronage of made in Nigeria goods.
“Other measures would include up-scaling efforts at further development of electricity value-chain.”He added, “Ministries, Departments, and Agencies of government should compulsorily and strictly prioritise the patronage of made in Nigeria items in all their purchases and contracts.
According to the organisation, there is no indication that the nation will shift from its current monetary and foreign exchange policy and this may hamper economic growth in 2022. He said: “The use of the scanner is particularly very important. It is a sad commentary that the largest economy in Africa has been examining cargoes and containers physically and manually for the past few years. The effect of this on the cost of imports has been humongous.