Nigeria’s speedy economic recovery postCOVID- 19 is dependent on its active participation in global and regional trade, as well as the development of its industrial sector, particularly, the light manufacturing that is consumer-oriented and less capital-intensive according to industry experts.
This was discussed in a recent webinar themed developing Nigeria’s light manufacturing sector, COVID-19 response, opportunities and constraints, organized by the Manufacturing thematic cluster of the Nigerian Economic Summit Group (NESG), International Finance Corporation ( IFC) and the Manufacturers Association of Nigeria (MAN).
Niyi Adebayo, Minister for Industry, Trade, and Investment, mentioned that industrialization is pivotal to Nigeria’s long-term development, and that AFCFTA offers a chance to boost industrialization through numerous manufacturing opportunities including agro-processing, textile, etc.
Adding that the federal government also aims to boost Nigeria’s manufacturing sector contribution to GDP to 20 percent by 2023 and to also increase jobs in the sector by an additional one million.
He however said that a number of challenges will serve as hindrances, like the influx of imported goods, poor access to raw materials, inadequate innovation efforts, poor value addition practice, etc. however the FG is making efforts to support the sector’s development and build a vibrant economy.
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“It is important to build a vibrant sector that will benefit from the regional integration of AFCFTA, characterized by improved competition, and investment inflow. We realize that the full implementation of AFCFTA may not lead to the level of industrialization expected except policies are established to enhance competitiveness within the sector,” Adebayo said.
He noted that the light manufacturing sector is characterized by the changing needs of consumers; as such newer models should be adopted using global standards
“In order to compete globally, the local industry will need to develop marketing research and development capabilities to remain ahead of evolving customer’s taste,” Adebayo said.
Mansur Ahmed, president, MAN, said that the country’s obsession with crude oil hindered efforts to grow the manufacturing sector as such light manufacturing was brought to its knees during the pandemic, as it was largely dependent on import for inputs and the availability of foreign exchange to facilitate imports.
He said that it is necessary to bridge the gap between the light and heavy manufacturing to give the economy the resilience and platform it requires to thrive following the disruptions caused by the COVID- 19 pandemic, adding that the Africa Continental Free Trade Area (AFCFTA) also presents an opportunity to drive growth in the sector
“Boosting the country’s light manufacturing sector will act as a catalyst for growth and will aid Nigeria’s participation in the recently implemented AFCFTA pact, through competitive advantage, upscaling, capacity utilization and increased productivity,” he said.
Moji Adeyeye, directorgeneral of Nigeria’s National Agency for Food and Drug Administration and Control (NAFDAC) said regulation is critical to the sector in order to ensure the output of quality and competitive products.
She said that beyond regulation, manufacturers need enabling conditions to be productive especially in a global market, where human capacity development, innovation, definite skillset and continuous training is required.
Adeyeye represented by Monica Hemben, director of Registration & Regulatory Affairs, NAFDAC said “we need to have structures in place that supports local manufacturing, which will champion the move away from import dependence”
Ukama Okafor, Deputy Director, Pharmacists Council of Nigeria highlighted that the pharmaceutical subsector depends on imports for 80 percent of its inputs, which calls for the need to revive the petrochemical industry which will improve local production and competitiveness of manufacturers.
She said that this will require investments in enabling infrastructure, research & development, and partnership between the private and public sectors.
“The sector requires the inflow of funds and investments from either private, multinational or donor agencies for maximum productivity. Sector players also need to be incentivised with policies and frameworks that encourage productivity,” she said.
