FG to allocate N75 billion to expedite transformation of manufacturing sector

• To collaborate with MAN to implement sector-specific guidelines-Minister

The Federal Government through the Federal Ministry of Industry, Trade, and Investment has announced that the president has pledged to allocate N75 billion for 75 manufacturing enterprises to access N1 billion credit at a 9% interest rate per annum, adding that the initiative aims to expedite the transformation of the manufacturing sector.

The Minister of Industry, Trade and Investment, Doris Uzoka-Anite disclosed this in her keynote address at the 2023 edition of the Nigeria Manufacturing and Equipment Exposition (NME Expo) and the Nigeria Raw Materials Exposition (NIRAM Expo) with the theme: ‘Future of Manufacturing,’ in Lagos.

The minister said that the theme: ‘Future of Manufacturing,’ emphasizes the need for a renewed focus as well as deliberate attention to the development of the non-oil sector through manufacturing processes, adding “As we are all aware Nigeria has long been dependent on oil as our primary source of revenue putting marginal attention to sustained manufacturing activities. However, the volatility of the global oil market and the need for diversification have necessitated a shift towards developing our manufacturing industry and tapping into its immense potential.

“We are convinced that Manufacturing has always been a critical driver of any economic development and is crucial for sustainable growth and job creation. It has the potential to transform our nation’s economy, diversify our revenue sources, and reduce our dependence on oil. The current global economic landscape provides us with unique opportunities to showcase Nigeria’s manufacturing potential and attract local and foreign investments to drive this crucial sector forward.”

She acknowledged that manufacturing has always been a critical driver of any economic development and is crucial for sustainable growth and job creation, adding that it has the potential to transform our nation’s economy, diversify our revenue sources, and reduce our dependence on oil.

The current global economic landscape, she said, provides us with unique opportunities to showcase Nigeria’s manufacturing potential and attract local and foreign investments to drive this crucial sector forward.

Uzoka-Anite hinted that the future of manufacturing in Nigeria relies on our ability to embrace technological advancements and innovation, stressing “We must leverage emerging trends such as artificial intelligence, automation, robotics, and the Internet of Things (IoT) to enhance our manufacturing processes, improve efficiency, and drive productivity. By adopting these cutting-edge technologies, we can boost the competitiveness of our local manufacturers and position Nigeria as a global manufacturing hub.

“Furthermore, the future of manufacturing also lies in harnessing the potential of renewable energy sources. As we transit to a greener economy, it is imperative that we promote the use of clean and sustainable energy in our manufacturing processes. This will not only help reduce our carbon footprint but also create new job and investment opportunities in the renewable energy sector,” she added.

She harped on the need to prioritize the development of our raw materials sector to support our manufacturing industry, adding “By focusing on value addition and local sourcing, we can reduce our reliance on imported raw materials and improve the overall competitiveness of our products. This will also contribute to the growth of small and medium-sized enterprises (SMEs) and empower local entrepreneurs to participate actively in the manufacturing value chain.”

The Nigerian government, through her ministry, she said, is dedicated to fostering a conducive environment for manufacturers to flourish, adding that their commitment extends to the implementation of policies and programs that facilitate ease of doing business, improve access to finance for manufacturers, and enhance infrastructure and logistics to bolster the growth of the manufacturing sector.

Uzoka-Anite disclosed that as part of this commitment, the Federal Ministry of Industry, Trade, and Investment will strengthen collaboration with MAN to implement sector-specific guidelines. According to her, “This underscores the pivotal role of the manufacturing sector in our overarching strategy for sustainable growth. We acknowledge that manufacturing is a cornerstone for job creation, value addition, and a robust workforce. Our policy initiatives centered on creating an enabling environment, incentivizing production activities, and promoting the use of made-in-Nigeria products to boost the competitiveness of our manufacturers.”

In the minister’s words: “Since my assumption of office, with the approval of Mr. President, a presidential council for industrial revitalization has been established, with the Minister of Finance serving as the Chair and myself as the Vice Chairman; additionally, various workgroups and task forces have been formed to effectively implement the council’s mandate. Some of these include subcommittees on consumer credit, commodity exchange, heavy industries, and steel development, as well as trade facilitation and ease of doing business. Other subcommittees are licensing and certification of artisans, trade facilitation and realization, mining and solid minerals, oil and gas, and creative industries.

“In line with the objectives of Mr. President’s Renewed Hope Agenda, it is essential that we intentionally shift our focus towards non-oil manufacturing sectors such as agriculture, textiles, automotive, pharmaceuticals, and renewable energy. Through fostering innovation, championing local content, and strategically investing in critical infrastructure, we have the potential to catalyze the development of a robust and globally competitive manufacturing sector, thereby significantly contributing to our economy.”

The minister thanked the Manufacturers Association of Nigeria (MAN) for organizing the remarkable event and urged all stakeholders, including manufacturers, policymakers, investors, industry experts, exhibitors and participants to collaborate, share knowledge, best practices and work together to shape the future of manufacturing in Nigeria as well as build a resilient and competitive manufacturing sector that will drive the nation’s economic growth and create jobs for the youths.