By Esther Agbo
At the 2024 Access Corporate Forum in Lagos, the Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, highlighted the critical issue stifling Nigeria’s manufacturing sector as ineffective policy implementation by successive governments.
According to Ajayi-Kadir, while intentions to boost domestic production are often expressed, these policies rarely materialise in a way that benefits the sector, leaving it operating below 50 per cent of its installed capacity.
Ajayi-Kadir pointed out that lack of commitment within the government have left manufacturers struggling to realise the full potential of their industries.
“As a result of these factors, the manufacturing sector in Nigeria has continued to perform at less than 50 percent of its installed capacity,” he remarked.
Contributing, the President of the Dangote Group, Aliko Dangote, echoed this sentiment, calling for a more robust government commitment to supporting local manufacturing.
Dangote criticised the heavy reliance on foreign products, which he said exacerbates poverty by creating jobs abroad instead of within Nigeria.
He said, “What attracts foreign investment is domestic investment. No domestic investments, no foreign investments.
“So, we have to make sure that we support our domestic investors.
“I went to two places on Wednesday and I was a bit angry. I wanted to eat snacks and all the biscuits that I was given in these two different places were made in China, which is wrong.
“If we are consuming made in China biscuits, it means that we are actually creating jobs in China and creating poverty here.
“So, we need to have proper support for domestic industries.”
As part of a broader conversation on challenges facing the manufacturing sector, the ongoing issue of unresolved foreign exchange (FX) backlog claims was also raised.
The Central Bank of Nigeria (CBN) had earlier announced the settlement of valid FX claims but maintained that $2.4 billion worth of transactions remained unverified. This unresolved FX issue, according to MAN, continues to cripple many manufacturers who rely on foreign exchange for imported raw materials.
Moreover, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, urged affected manufacturers to maintain dialogue with the CBN to resolve the impasse.
“There is a related matter that MAN raised that has to do with the backlog of unpaid transactions regarding the supply of FX.
“We understand that CBN is the counterparty to that issue and whatever the issues are, dialogue and continued consultation is really the best answer,” Edun advised.