Shettima unveils new roadmap for Nigeria’s manufacturing sector, promises speedy implementation

Vice President Kashim Shettima on Tuesday said the Federal Government has joined forces with the Manufacturers Association of Nigeria (MAN) to develop a practical action plan and policy framework that would seek to re-prioritize the country’s manufacturing sector.

Shettima assured that if a plan is developed, it will be implemented quickly and necessary changes will be made to revive the manufacturing sector.

He disclosed this at the opening of the three-day National Productive Policy Summit at the Banquet Hall of the State Capitol, Abuja.

However, Dangote Group chairman Aliko Dangote, who also spoke at the event, criticised the recent hike in interest rates to almost 30 per cent by the Central Bank of Nigeria (CBN).

Shettima regretted that the manufacturing sector, despite playing a key role in building a nation based on production and prosperity, has suffered a series of setbacks over the past decades.

Addressing the audience, he said: “Ladies and gentlemen, I implore all of us to use this summit to develop an actionable plan and policy framework, ready for immediate implementation, to bring about the change we want in the manufacturing sector.

“I assure you that we will always maintain an open door policy to meet your needs and expectations.”

Shettima called for prioritizing local products and promoting products made in Nigeria, stating that Executive Order 003, which made the use of locally manufactured products mandatory, is still in force.

He said: “Let us recall that we cannot make significant progress in our industrialisation drive unless we consciously promote the production of capital goods. We need to focus on expanding our manufacturing base, prioritise local content and promote products made in Nigeria.

“I want to assure you that Executive Order No. 003 – Support for Local Content in Public Procurement by the Federal Government – which mandates patronage of locally produced products, is still in force. The relevant government ministries, departments and agencies (MDAs) are committed to fully complying with the order.”

The Vice President noted that as a country in Africa, “a continent that is at the bottom of the global value chain and has less than two percent of the global manufacturing industry,” Nigeria has no better option than to support domestic companies in local production and capacity building.

The summit, according to Shetimma, provided an opportunity to reassess the challenges facing the sector and propose solutions to address them. He said a competitive manufacturing sector would reduce inequality in the country’s economy as well as excessive dependence on imports.

According to him, “our proposal to minimize economic imbalances in the country is based on strengthening the production base of our economy, especially in the processing sector.

“Much of our failure as a nation, as all of you know, stems from our over-dependence on imports even for our basic needs. That is why we need you to address the various challenges facing the sector and ensure that we have a competitive manufacturing sector.”

Shettima expressed satisfaction with what he saw during his visit to the exhibition. He said he was more convinced than ever of Nigeria’s industrial capacity, creativity and innovation.

Highlighting the role of manufacturing in driving prosperity, creating jobs, living standards and generating income, he said this explains why President Bola Tinubu is focusing on accelerating infrastructure projects including roads, ports and energy supply.

“It is essential to accelerate the implementation of infrastructure projects that will allow the sector to leap forward and grow. That is why the focus of His Excellency President Bola Tinubu on roads, ports and energy supply is strategic,” he added.

Shettima outlined five pillars of the summit that he said provide a clear roadmap to boosting the manufacturing sector. He added that there is a need to bring about significant change and develop the industry by addressing key issues under each of these pillars.

He listed the pillars as increasing productivity and competitiveness, energy security and infrastructure development, improving the macroeconomic environment and facilitating the ease of doing business, promoting Made-in-Nigeria products and developing local content, and leveraging regional and continental trade to develop exports.

In his keynote speech at the event, Dangote criticized the recent increase in the CBN’s interest rate to almost 30 percent. He said businesses in the country would not be able to cope with the over 26 percent interest rate released by the apex bank in May, stressing: “Nobody can create jobs with an interest rate of 30 percent. Growth will not happen.”

He called on the government to protect existing businesses in the country, especially manufacturers, by providing them with an enabling environment. He said import dependency is equivalent to import poverty.

“No power, no prosperity. No affordable finance, no growth, no development,” he explained.

Dangote said for the government to address the challenges of unemployment, poverty and insecurity, the manufacturing sector must be strengthened to function optimally.

He stressed the need to provide a reliable source of energy and affordable financing for industrial development.

The business magnate has advocated for a circular economy model in which economic activity remains within a country, benefiting all sectors of society.

He also reaffirmed that industrialization is “the inevitable path to sustainable and inclusive economic growth and human development.”

Former Finance Minister, Dr. Olusegun Aganga, has appealed to the government to recognise the manufacturing industry as a priority sector for the country.

Aganga noted that the mere possession of natural resources does not guarantee national wealth.

“A country becomes rich by how it uses its resources,” Aganga said.

He called for a transition from peasant farming to commercial farming and from artisanal mining to attracting large-scale miners.

Aganga said: “We also need to eliminate excessive duties, fees, regular charges and multiple regulatory bodies with overlapping mandates.”

Earlier, MAN president Otunba Francis Meshioye thanked the participants for accepting the invitation after several postponements and expressed gratitude to Tinubu for giving them the opportunity to hold the summit at the State Capitol.

Meshioye said that since the association established contact with the vice president’s office, it has received tremendous support and cooperation from the president.

The MAN CEO said the summit was organised to examine evidence of constraints that reduce the efficiency of the industrial sector and to discuss and agree with the government on actions to be taken to eliminate them.

He stated that “the ultimate goal of the meeting is to reposition the sector on a path of accelerated growth, increase its competitiveness and benefit from its multiplier effect on the economy and citizens’ well-being.”

Highlighting the factors that are reducing growth in the sector, Meshioye said, “The current microeconomic situation is putting a serious strain on the manufacturing sector,” adding, “This is having a negative impact on jobs and livelihoods of citizens.”

Deji Elumoye, James Emejo and Dike Onwuamaeze