[SPECIAL REPORT]
ECONOMIC DIVERSIFICATION
In a bid to diversify the economy, utilise the vast amount
of raw materials available and meet the demands of this
huge and fast-growing consumer population, the Federal
Ministry of Nigeria has instigated several measures that aim
to boost the manufacturing sector. Nigeria’s growing $150
billion consumer market and abundance of raw materials
means that the manufacturing sector has massive potential
for growth, and could well see Nigeria becoming the next
global manufacturing hub.
One barrier to this development is the accessibility of
forex to purchase new machinery and tools from international
suppliers. To combat this challenge and support SME’s
and manufacturers to retool and modernise, the Federal
Ministry has passed legislation that encourages the import
of manufacturing machinery and tools. This includes a large
proportion of USD ring-fenced by Central Bank of Nigeria
(CBN) — as high as 50-60 percent of all USD reserves in
Nigeria. Other measures taken include Government funding
and low interest, long-term loans as well as a reduction or
full removal of import duties on manufacturing machinery.
According to the National Technical Working Group
on Manufacturing Thematic Area for Nigeria Vision (NV)
20:2020, the manufacturing sector provides the greatest
opportunity for the transformation of the Nigerian economy.
It is an antidote for unemployment, a creator of wealth and
threshold for sustainable development.
INVESTMENT POTENTIAL
The Minister of Communications, Adebayo Shittu said
some Indian investors have showed interest to invest about
$4 billion in Nigeria’s manufacturing sector. Federation of
Indian Chambers of Commerce and Industry (FICCI), India
identifi ed few key sectors in manufacturing for investment
purposes such as agricultural produce processing, textiles,
wood, paper, iron and steel, non-ferrous metals, fabricated
metal products, and consumer durables. The Nigerian
government is also planning to set up Special Economic
Zones (SEZs) and provide a world class infrastructure to
attract investors in large numbers across the globe.
In conclusion, manufacturing is one of Nigeria’s growth
drivers. A serious commitment to industrialisation and
manufacturing has the potential to make Nigeria’s economy
enviable among other developed and developing nations.
Sources:
https://www.thisdaylive.com/index.php/2018/01/07/
nigerias-manufacturing-sector-from-inertia-to-nine-
consecutive-months-of-growth/
h t t p s : / / w w w. t r a l a c . o rg / n e w s / a r t i c l e / 1 2 9 9 9 -
manufacturing-sector-and-nigeria-s-economic-growth-
pattern.html
https://www.today.ng/business/finance/central-bank-
directs-banks-loans-agricultural-manufacturing-companies-
9-percent-142774
https://www.dailytrust.com.ng/indian-businessmen-to-
invest-4billion-in-nigeria--minister-250513.html
https://www.pmnewsnigeria.com/2018/04/16/nigerian-
govt-advised-on-ways-to-tackle-manufacturing-sector-
chhallenges/
https://www.naija.ng/1150344-types-manufacturing-
industries-nigeria.html#1150344
Nigeria-India• 2018 • 35