Revive manufacturing sector to boost local economy — experts urge FG

Experts have urged the Federal Government to take urgent steps to revive the manufacturing sector so as to boost the local economy.

One of the experts, Okechukwu Unegbu, said the absence of a vibrant industrial and manufacturing sector in the country had exacerbated various economic challenges, like rising inflation and an unstable currency.

According to him, the priority for the government and its relevant agencies is to help the industries to start producing again.

“Production and manufacturing of essential goods will stop the dependence on imported goods, and go a long way in revamping the economy and strengthening the naira.

“The Federal Government should address fundamental dislocations in the country, like boosting investment, reducing the unemployment rate and cutting down on inflation,’’ he said.

He said that it would also be advisable for the government to reduce the tax rate so as to increase the volume of tax to enhance economic growth.

“The more employment you get, the more tax you will get, and that will boost the government’s revenue drive. Government should lower the tax rate for more investment and a wider tax volume,’’ he said.

He advised the Central Bank of Nigeria (CBN) to adopt effective monetary policies that would strengthen the value of the naira.

“A strong currency is also indicative of a performing economy. The CBN should take innovative steps to firm up the value of the naira.

“The apex bank should be more proactive and more open in its foreign exchange operations.

“The idea of direct allocation of foreign exchange to certain categories of businessmen, instead of allowing them to go through deposit money banks, is an abuse of the naira,’’ he said.

According to Tope Fasua, an economist, the Federal Government should take concrete steps to boost productivity, with strong local content to boost the country’s economy.

Fasua said that a country’s economy could only be as strong as the productivity that underlies it.

“This is talking about the knowledge quotient of the goods and service that a country produces.

“If a country does not have a lot of local content going into the products it exports then the economy of that country will have issues,” he said.

The Nigeria Economic Summit Group (NESG) suggested that Nigeria needs to achieve a paradigm shift in governance and policy design to sustain and accelerate economic growth.

Laoye Jaiyeola, chief executive officer of the NESG, made the suggestion in the group’s macroeconomic outlook. He said that failure by the Federal Government to embark on the reforms could worsen current economic challenges.

“In the NESG, we believe that the role of government is to ensure that reforms translate to a friendly business environment and better welfare conditions for households,’’ he said.

The NESG boss also said although Nigeria had enormous potential, job creation across sectors was lagging, resulting in an increase in unemployed individuals. He said that widespread insecurity across the country had informed the need for policy formulation and implementation that impacted all strata of society.

“While there is considerable improvement in some areas such as the mobilisation of non-oil revenue in the last few years, one thing is clear:

“Nigeria cannot afford to continue with its business-as-usual approach in policymaking and execution.

“The heightened insecurity and social vices in several parts of the country is proof that when some segments of the population are left behind, it will offset the few gains made prior to COVID-19.

“It will also deprive the country of much-needed investments that would ensure sustainable growth and development, ‘’ he said.