Nigeria’s economy is indeed at a critical juncture, and stakeholders are sounding the alarm. At the 36th Annual General Meeting of the Manufacturers Association of Nigeria, experts warned that if urgent action isn’t taken, the economy may collapse entirely.
The stakeholders emphasized the need for the government to focus on addressing the country’s economic situation internally, rather than relying on external solutions.
They lamented that government agencies are more interested in generating revenue than in supporting local industries, which is detrimental to the economy.
According to Dr. Nnaemeka Obiaraeri, Managing Director/CEO of Taurus Capital & Advisory Limited, a thriving economy relies heavily on the success of micro, small, and medium enterprises (MSMEs).
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.
“Manufacturing is very very 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-oli commodities but we need to get our act right. The sizes of production are there, the land is naturally given, in human capital we have some of the brightest and smartest people and most reasonable and hard working in Nigeria as Nigerians,” Obiaraeri who was the Keynote Speaker at the event held in Enugu on Wednesday said.
Research from the McKinsey Global Institute supports this view, highlighting the importance of understanding economic growth at a more granular level. By analyzing microregions, researchers found that Nigeria has reduced its share of people living in areas with very low living standards. However, growth and development are not evenly spread across the country ².
To revitalize Nigeria’s economy, stakeholders recommend a manufacturing-driven approach, focusing on non-oil exports. This strategy aligns with the government’s goal of fostering sustainable economic growth and transformation.
The Nigerian Economic Summit Group’s 2024 Macroeconomic Outlook report provides a comprehensive analysis of the current economic landscape and proposes a strategic plan for economic transformation.
Earlier in her address, Chairman, Manufacturers Association of Nigeria, Anambra/ Enugu/ Ebonyi Branch, Lady Ada Chukwudozie, explained that business environment is increasingly volatile, uncertain, complex, and ambiguous (VUCA), driven by geopolitical tensions, technological disruptions, and evolving customer demands.
Chukwudozie stated that to thrive in this environment, businesses need to be agile, resilient, and forward-thinking.
According to her, businesses must anticipate what’s coming next, what’s new, and what hasn’t been thought of yet. “This requires a mindset shift, a willingness to take calculated risks, and a commitment to continuous learning and innovation”.
“Here in Nigeria, our economy has depended heavily on crude oil export for its foreign exchange earnings. With dwindling production of crude oil largely due to insecurity and other factors, the foreign reserve has not been able to sustain the pressure on the dollar due to trade deficits and the minting of more money through ways and means, which has impacted the inflation rate.
“However, the recent deregulation of the energy sector has hit an all-time high, with high interest rates in response to the high MPR rates, as the government keeps trying to adjust the monetary policies to control inflation. This has resulted in the currency being devalued. These challenges fully justify divestments into manufacturing-driven non-oil exports initiatives, especially for businesses in the manufacturing sector.
“In this new reality, sustainable competitive advantage is no longer a guarantee. Organizations must adapt and innovate to stay ahead. They must be willing to challenge assumptions, experiment with new ideas, and invest in emerging technologies.”
The Special Guests of honour and MD/CEO, Keystone Bank, Mr. Hassan Iman stated that revitalizing Nigeria’s economy through manufacturing-driven non-oil exports requires a collective effort.
According to him, “Manufacturers, financial institutions, policymakers, and other stakeholders must work together to address challenges, seize opportunities, and create a growth-friendly environment.”
He added, “Non-oil exports offer Nigeria and Nigerian Manufacturers an exciting opportunity to redefine its economic trajectory and revenue mix. As we move towards regional economic integration under the African Continental Free Trade Area (AfCFTA), 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 Southeast 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 southeast region, are not just meeting local demand, they have the potential to be well-positioned to capitalize on export opportunities.
He advised that in efforts to revitalize Nigeria’s economy through non-oil exports, “we must focus on sectors with high export potential.”
On his part, the Chairman of the Occasion, Chief Martin Agbaso, urged Nigerian leaders and stakeholders to find right steps to come out of the current economy situation.
“We must find the right steps now,” he said adding that Nigeria is at the crossroad again with the currency forced to massive devaluation.
He said, “36 years ago Nigeria embarked on structural adjustment program 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 program and devaluation of our currency we didn’t have anything to export already programmed.
“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 has already priced in dollars. So when you devalue your currency it was useless. Now we at that crossroad again but the difference now is that our currency has been forced first our currency have been forced to 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 taking the downward trend will collapse the economy completely.”
He added, “The regulation has to be done in such a manner that the benefits to both manufacturer and to the exporter will become easy. If this is not taking care of 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.”
