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South-East governors have been enjoined to collaborate to invest and support the manufacturing sector to grow their economy and address unemployment in the region.
Deputy Governor of Anambra State, Dr Onyekachukwu Ibezim, made the call during the two-day Annual General of Meeting of the Anambra/Ebonyi/Enugu states chapter of the Manufacturers Association of Nigeria, held in Enugu, the Enugu State capital.
He said that South-East states should learn from one another, cross-fertilise ideas and begin to work on the challenges affecting the non-oil sector in the zone.
The deputy governor, who was a Special Guest Honour at the event, said, “Systematically, we need to identify those areas that have comparative advantage with production and in Anambra State, we are doing something different in agriculture as we are doing revolution in palm tree and coconut.”
At the AGM, themed ‘Revitalising Nigeria’s Economy Through Manufacturing-Driven Non-Oil Export,’ the keynote speaker and former Director-General of the Nigeria Maritime Administration and Safety Agency, Dr. Dakuku Peterside, highlights the crucial role of the manufacturing sector in addressing Nigeria’s economic challenges.
Dakuku averred that by investing in this sector, the country can unlock opportunities for growth, innovation, and job creation, even as he emphasised the need for support for manufacturing, which he said can attract more investors, drive product innovation, and increase earnings for the country.
Dakuku posited that export-driven manufacturing, in particular, can help Nigeria achieve high-growth trade and reduce its reliance on oil exports. This approach can also serve as an import substitution strategy, promoting domestic production and reducing the country’s vulnerability to fluctuations in global oil prices.
He said, “Manufacturing of non-oil export has proven to be the major tool for diversifying the economy and reducing Nigeria’s vulnerability, fluctuation in oil price and Nigeria should stop depending on oil and gas but focus on production.
“And for manufacturers to do well and export trade to grow, we need to develop our infrastructure such as railway, airport, seaport and road network for movement of goods and services as well as ensuring competitive workforce.
“We also need to fix our power, provide incentives for manufacturers like export subsidy, tax-free on certain export and ensure the stability of monetary policy, and interest rate as they influence the manufacturing sector.”
In her address Chairperson of MAN Anambra/Enugu/Ebonyi MAN, Mrs Ada Chukwudozie, emphasized the need for a paradigm shift in Nigeria’s export strategy, focusing on supporting the manufacturing sector.
Mrs Chukwudozie noted that the sector is struggling to survive, and the country’s reliance on oil poses significant challenges, including price volatility and environmental degradation.
To achieve economic sustainability, Chukwudozie stressed the importance of diversifying the economy and developing critical sectors that drive non-oil exports.
She cited examples of countries that have successfully implemented manufacturing-driven non-oil export strategies to drive economic growth and diversification.
She enthused, “To sustain this, we must prioritise investment in infrastructure, education and research to develop a skilled and innovative workforce.
“We must develop policies that support manufacturing, such as tax incentives, trade agreements and access to finance, focus on the development of high value-added products and services that can compete globally.
“We in the manufacturing sector have challenges such as funding, market for the product, unhealthy competition, high production cost, lack of critical production inputs and unfriendly investment environment.”
Earlier, the Chairman of the event, Chief Martin Agbaso, regretted that the country embarked on various Structural Adjustment Programmes discouraging exports and pushing forward imports.
He, however, urged all the local government areas in Nigeria to begin to tap into the various natural resources in their locality to move the nation forward.
He said, “We must find the right steps now,” adding that Nigeria is at the crossroads again with the currency forced to massive devaluation.
He said, “36 years ago, Nigeria embarked on a structural adjustment programme which was designed to devalue the currency, encourage export and discourage import. That was the design, but unfortunately at the time the government embarked on that programme and devaluation of our currency, we didn’t have anything to export.
“We have not set up proper infrastructure at the farm gate, we didn’t have commodity exchange that was working properly. So we have nothing and the only thing we had ready for export was crude oil which had already been priced in dollars. So when you devalue your currency it is useless. Now we are at that crossroads again, but the difference now is that our currency has been forced into massive devaluation.
“We didn’t need structural adjustment now to devalue it, it has been forced down in a manner that if care is not taken, the downward trend will collapse the economy completely.”
He however warned that unless regulation is done in a manner that benefits both manufacturers and the exporter, “We’re just wasting our time. Now what can manufacturers do on their own, get properly educated, find out what is needed by different economies, different countries in the form they want it.”
Managing Director/CEO of Taurus Capital and Advisory Limited, Dr. Nnaemeka Obiaraeri, explained that a thriving economy relies heavily on the success of micro, small, and medium enterprises.
He noted that Nigeria’s economic growth is hindered by its focus on government revenue, citing China and other Asian countries as examples of economies driven by MSMEs.
He enthused, “Manufacturing is key, but we are here to brainstorm, to fashion the best way that we can provide support for SMEs in Nigeria in such a way that they can play their active role, not only in wealth creation, but in job creation; because once we get it right from this particular sector; ensuring that we produce everything we consume here, and explore some of the opportunities both at the actual framework to export things.
“Nigeria can export $350 billion worth of non-oil commodities, but we need to get our act right. The sizes of production are there, the land is naturally given, and in human capital we have some of the brightest and smartest people and most reasonable and hard working in Nigeria as Nigerians.”
Managing Director of Keystone Bank, Mr. Hassan Iman, stated that revitalizing Nigeria’s economy through manufacturing-driven non-oil exports requires a collective effort.
He said, “Manufacturers, financial institutions, policymakers, and other stakeholders must work together to address challenges, seize opportunities, and create a growth-friendly environment.
“As we move towards regional economic integration under the African Continental Free Trade Area, Nigeria, Africa’s largest economy, has a unique chance to position itself as the manufacturing hub for the continent. By harnessing our abundant natural resources, Nigeria can drive the strategic growth of non-oil exports, fostering a more resilient, diversified, and globally competitive economy.
“The South-East region is already making impressive strides in manufacturing, with a rich legacy of textile production in Aba, thriving automotive manufacturing like Innoson vehicles, as well as pharmaceutical giants like Emzor Pharmaceuticals, to mention just a few. These companies and many others in the South-East region are not just meeting local demand, they have the potential to be well-positioned to capitalize on export opportunities.”
Stakeholders, however, called for timely investment and support, considering the manufacturing sector’s potential to drive economic growth.
As highlighted in a report by KPMG Nigeria, the sector has been growing at an average annual rate of 3.4 per cent in 2021 and 2.5 per cent in 2022, contributing around 10 per cent to Nigeria’s GDP.
The manufacturing sector is critical to Nigeria’s economic diversification, and investing in it can have a significant impact on the country’s growth and development.
As the Nigerian Economic Summit Group noted, Nigeria’s manufacturing sector is among the largest in Africa, with numerous opportunities for growth and investment.
The highlights of the AGM include bestowing of awards on distinguished Nigerians, Gala Night and dance.
