New Telegraph

Evaluating NIPC’s report on manufacturing sector

The Manufacturers Association of Nigeria (MAN) has said that the recent pronouncement by the Nigerian Investment Promotion Commission (NIPC) that the manufacturing sector topped investment tracked in Q3’21 is an indication that the sector is moving in the right direction post- COVID-19 despite the macroeconomic challenges. TAIWO HASSAN reports

Recently, in far away Paris, France, President Muhammadu Buhari painted a glowing picture of Nigeria’s economy post-COVID- 19, predicting that its outlook remained bright with sustained investments in infrastructure, particularly in ICT. However, at the inception of the administration and COVID-19 era, President Buhari stated that ICT, manufacturing and agriculture were key sectors his administration was exploring to rejig Nigeria’s fragile economy. In particular, Mr. President assured that these key sectors of the economy were imperative to the country’s GDP (Gross Domestic Product). He, however, pointed out that Nigeria’s manufacturing sector had a huge potential in turning around the country’s industrialisation bid if giving the necessary support, especially funding. Following the president’s stance on Nigerian manufacturing sector as economic hub for industrial development and attaining industrialisation, credit should be giving to MAN as an organisation for promoting the development of the real sector of the economy. With the national consciousness of economic transformation in the country, there is no doubt that Nigeria’s business environment favours global businesses and has a friendly regulatory environment that supports foreign direct investments (FDIs).

NIPC’s report on key sectors

In a bid to demonstrate manufacturing sector’s revival in the country’s economy, the Nigerian Investment Promotion Commission, while accessing the country’s investment performances among various key sectors, stated that Nigeria’s manufacturing sector topped investment announcements for the third quarter of 2021 with $8.99 billion, attracting 42 per cent of the investments in the country.

Its Acting Executive Secretary, Mr. Emeka Offor, during a press briefing in Abuja, stated that the real sector was showing investors’ attractions and willingness to invest into the country’s manufacturing sector. He noted that the real sector’s performance in terms of topping the country’s investment profile also signified a major improvement in investor confidence in Nigeria, post-COVID-19. Offor stated that in Q3’21, $8.99 billion was tracked as investment announcements in 33 projects across eight states, citing that a new tool implementation would allow NIPC to authenticate the announcements and propel them from mere announcements to actual investments.

According to him, August was the most active during the quarter, accounting for 64 per cent of the total announcements. The Director, Strategic Services, NIPC, Mr Abubakar Yerima, while speaking on the investments breakdown, said that Lagos received the largest share of the announcements with 20 projects, accounting for 81 per cent ($7.29 billion) of the total in manufacturing, information and communications, finance and insurance, human health and social services and electricity. He said: “Rivers State recorded $300 million worth of announcements in manufacturing and transportation, while Oyo State had $231 million announced in electricity and trade (e-commerce).”

MAN’s stance

While reacting to the NIPC’s report, President of Manufacturers Association of Nigeria, Mansur Ahmed, explained that seeing the investment profile outcome result indicated that the country’s manufacturing sector was still the hub of investors in all ramifications. Ahmed stated that the NIPC report also showed that the real sector was overcoming the straits and negative trajectories experienced during the COVID- 19 era, where virtually the supply and demand and distribution value chains were hampered globally, thus putting the global manufacturing sector on brake. The MAN president stressed that the country’s manufacturing sector was a key indices for economic growth and development because of its fundamental contribution to the country’s GDP growth.

He pointed out that there were no doubts that uncertainties are surrounding the country’s manufacturing sector currently, but, if rightly supported with funding and infrastructure, the sector would further attract investors following the positive outlook on return on investment for prospective investors. The MAN president, however, urged the Federal Government to show more support for the sector post-COVID-19 in a bid to take Nigeria’s economy to the next level. He also used the opportunity to commend all manufacturers operating in the country, especially companies like Dangote Group, Flour Mill of Nigeria Plc, Unilever Plc, Nigerian Breweries Plc and others for their steadfastness in keeping the momentum in the country’s manufacturing sector and contribution to uplifting the country’s economy. According to him, high energy cost on production is one of the key challenges facing many local manufacturers today in the course of production. He said that if infrastructure deficits are tackled, there would be lots of investors moving into the country’s manufacturing sector.

Last line

Following the NIPC’s report that Nigeria’s manufacturing sector topped investment inflow in Q3’21, the Manufacturers Association of Nigeria is saying that the only way to maintain the momentum is for the creation of thriving business environment, relaxation of bottlenecks, friendly regulations, and improving on infrastructure.

Read Previous

Embracing digital currency realities

Read Next

Nigeria’s cashew nut processing gets $3.5m support

Leave a Reply

Your email address will not be published. Required fields are marked *