Food, energy, manufacturing deficits open window for investors

The widening deficits in the food, energy and manufacturing sectors of the Nigerian economy have created an opportunity for investors to tap in and reap big while creating jobs and sustainable growth.

This is according to Abiodun Adedipe, chief consultant of B. Adedipe Associates Limited, who emphasised that the country’s economy has been growing for the past 12 years as a dollar-millionaire-making economy rather than a job-creating economy.

“The food, energy, and manufacturing deficits affecting the Nigerian economy have always been a pointer to opportunities for investors,” Adedipe said at the Nigerian-British Chamber of Commerce economic outlook on Thursday in Lagos.

“The economy can grow in a sustainable and sustained manner if we discourage importation, reduce import duties, and promote manpower from the manufacturing sector,” he added.

The economist made it known that the government cannot provide the infrastructure to make these happen, rather, they can develop a convivial environment to enable them, leaving company chiefs to collaborate and leverage on the improved business condition to grow.

Nigeria’s rather harsh business environment has left a vacuum in many job elastic sectors that could grow the economy and boost the standard of living of its citizens.

Rising inflation, naira volatility and an upward trend in borrowing cost means business operations are in a vulnerable position as there would be high operating costs, low consumer spending and piling unsold inventories.

But all is not doom. Experts who spoke at the event said Nigeria’s 2025 economic growth forecast is contingent on the private sector’s involvement and execution of key growth strategies rather than reliance on the federal government.

“In at least five years, insecurity has always been a major threat to the Nigerian economy, affecting every area of productivity and economic growth. Nigeria has been forecasted for positive growth in 2025 but economic gaps within the healthcare, education, and manufacturing sectors need to be addressed,” Ray Atelly, president and chairman of council, NBCC said.

During his address, he noted how the high cost of funds and interest rates are having a crippling effect on all sectors in Nigeria, with manufacturers being particularly hard hit.

He urged private sectors to leverage their existing manpower and collaborate with investors relevant for economic growth rather than waiting for the government to take action or implement growth forecasts.

“While the government can create an enabling environment for growth, it is up to policymakers to foster a business-friendly climate. We must urge those responsible for shaping policy to create conditions that encourage investment and stimulate growth in our country,” Atelly emphasised.

The NBCC 2025 Economic Outlook was designed to provide businesses, industry leaders, and policymakers with the critical insights and tools needed to navigate the evolving economic landscape.

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Reliable energy required for improved economy

Speaking during the panel session, Christopher Ezeafulukwe, MD/CEO of Transcorp Energy Limited, noted that the execution of certain strategies and the reliability of government policies in the energy sector are required to improve the Nigerian economy.

“To make things reliable, private organisations need to confront key infrastructural issues in the energy sector and ensure the reliability of delivery in major products needed for the expansion of the economy,” he said.

How industry chiefs are mitigating economic challenges in 2025

Olamilekan Adelana, MD/CEO of Zenith Carex, a logistics company in Nigeria, said good logistics entails efficiency and cost-effectiveness but the rise in energy, poor road infrastructure, and insecurity have hurt this sector.

“We need to examine the Nigerian logistics sector from the AfCFTA point of view the way Zenith Carex has been doing. The organisation has a strategic focus on creating an opportunity for good logistics for Micro, Small and Medium-sized enterprises (MSMEs) by empowering women with easier and safer delivery of their goods,” he said.

Theophelius Adewale Onadeko, MD/CEO of SwagCo Limited speaking on food security and sustainability, made it known that smallholder farmers contribute about 80 percent of what we eat but they can not contribute to food security.

“We need to stay consistent in developing agro-industrial hubs for smallholder farmers to deal with food deficits in Nigeria. In the agricultural sector, certain projects like the establishment of industrial hubs in Lagos have been lauded on paper but not fully executed. We need more private players to take action and allow the government to just create an enabling environment to bring it to life rather than relying on them,” he said.

Obafemi Banigbe, MD/CEO of 9Mobile Nigeria concluded by saying that the telecommunication industry is currently going through a difficult time due to consistent cost input and foreign exchange crisis in the country.

“One of the biggest challenges in the Nigerian telecommunication sector is the cost of energy to power the stations, especially diesel. The 9Mobile telecommunication industry consumes N40 million in terms of diesel every month and about 75 to 80 percent of our capital expenditures are foreign exchange-denominated with the rise in the dollar to naira,” he said.

He noted that private organisations need to create an environment where industries can thrive and generate a decent return for investors in the telecom sector rather than waiting for the Nigerian economy to move from a market-driven economy to a subsided economy.