Nigeria at brink of industrial breakthrough as Innoson, Bobtrack, point to one thing FG can do now

Nigeria is said to be at the brink of industrial breakthrough as soon as the Federal Government could just get its procurement policy right.

Industrial giants east of the Nigeria told BusinessDay in Port Harcourt Friday that over 5000 jobs would be created by only two manufacturers should the FG buy their products and close the importation window for just five years.

Enugu-based Innocent Chukwuma, CEO of Innoson Vehicle Motors (IVM) Limited, and Port Harcourt-based Ibifiri Bobmanuel, CEO of Bobtrack Tractor Limited, said at the weekend that the world especially America and China would marvel at what Nigeria would roll out soon, if the FG could get its procurement policy right.

While Bobmanuel, President of the Rivers State Entrepreneurs and Investment Forum (REIF), wants the FG to apply protectionist measures to allow local manufacturing to take roots, Chukwuma wants the FG to use its procurement powers to boost in local manufacturing.

Innoson CEO spoke in a three-minute presentation at a legislative breakfast forum at the National Assembly which featured leaders of industries and heads of arms government.

Chukwuma said Nigerians must agree that for Nigeria to industrialise, government procurement must become one of the strongest instruments for achieving that goal. “Our experience has shown that Nigerian businesses can compete, innovate and create jobs when supported by the right policies. Making it easier to do business is not only about reducing regulations; it is also about creating markets for Nigerian businesses. In that spirit, permit me to respectfully suggest three practical legislative actions that can strengthen Nigerian manufacturing and accelerate economic growth.”

He named the key measures to be making local procurement work by making all government agencies to first seek products in Nigeria before taking the order abroad.

The second he said is for the FG to measure compliance because, according to him, “What gets measured gets implemented. This will promote transparency, accountability and compliance with government policy.”

The third, he stated, is to create predictable demand by establishing a national government fleet procurement framework that provides predictable demand for Nigerian manufacturers. “This will encourage investment, expand production capacity, deepen local supply chains and create more jobs for Nigerians.”

He made it clear that production survives on predictable demand. “Mr. Speaker, these recommendations are not about Innoson alone. They are about creating an environment where every Nigerian manufacturer can thrive, compete globally and contribute more to our national development.”

His position was that Nigeria would lead the third world in manufacturing and fabrication because the potential is there.

On his own, Bobmanuel said America and China would be scared should Nigeria be freed to compete. He said Nigeria is doing very well in rice production, palm oil, vehicle manufacturing, tractors, etc.

He said the FG got it right with deregulation but has slumped by opening its doors for dumping, therefore threatening billions of naira investments by local producers.

Bobmanuel said importation of thousands of tractors takes thousands of jobs away from Nigerians, including technology transfer that suffers. He said most Nigerian manufacturers took loans to invest because they say the market, warning that changing the rules to open the doors for importation would force manufacturers to join importation business.

He said his understanding was that the FG wanted to bring down prices of foodstuff especially rice but said the Government would have called the rice processors to a meeting to find out how to help them bring down prices through strategic subsidization for a period.

He said the fear of election must not be made to be higher than fear of destroying local capacities.

He said a little policy management would help Nigerian producers to get to the next level of stability and take over a huge chunk of the global market in certain sectors.

He appealed to the FG to show patriotism and work with local producers instead of always helping foreign markets against home producers.