KEY POINTS
- Manufacturing plants in Nigeria are currently working at a meager 30 – 40 percent of their rated capacities.
- Irregular implementation of government policies negatively affects domestic production.
- Mr. Aliko Dangote also adds to this need to support local manufacturers rather than importing products across borders.
MAN has states that while formulation of policies for manufacturing industries is good, manufacturing growth is hampered by inconsistent policy execution. MAN complains of poor implementation of government policies that have failed to support Nigeria’s manufacturing sector.
Speaking at the 2024 Access Corporate Forum in Lagos, MAN’s Director General, Segun Ajayi Kadir said while successive governments have expressed their intentions to support the growth of local production, implementation has been weak causing the sector to operate at below 50 percent of its installed capacity.
Ajayi-Kadir also emphasized that implementation of the policies meant to boost manufacturing capacity has remained a dream of the government. This inaction combined with poor investment in the sector as seen in the exclusion of the sector in the country’s development plans and strategies has slowed down growth of Nigeria’s industrial sector.
Why local investment is important for increasing manufacturing capability
According to Vanguard, these concerns were echoed by the ones expressed by the Dangote Group of companies owned by Aliko Dangote where he emphasized the need for African countries to support local industries instead of importing mainly foreign products.
In his speech at the event, Dangote condemned the importation of such basic goods as biscuits from China, which he said creates employment for others while deepening poverty in the country.
Thus, there can be no foreign investment where there are no strong domestic investments. Without radical encouragement of local industries, there cannot be any hope of attracting foreign capital to the country,” Dangote stated while urging the government to do more for small-scale industries and domestic producers.
