Former Minister of Finance and Trade, Industry and Investment, Mr Olusegun Aganga has stated that Nigeria has been de-industrializing for the past 8 years since 2015.
This was said by Mr. Aganga during the 50th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), which took place in Lagos, during the Adeola Odutan lecture.
The former Minister pointed out that the years 2011 to 2014, when the government and MAN actively collaborated to grow the industry by double digits, were the best for the manufacturing sector.
He bemoaned the lack of coherence and a national industrial strategy, as well as the restricted communication between the public and private sectors.
According to him,
“The best year for the industry was between 2011 and 2014. That was when there was active collaboration between MAN and the government.
The numbers will tell you that Nigeria has been de-industrializing since 2015, not improving”
“The numbers will also tell you that when government promotes and supports industrialisation, the industry responds positively, and we all benefit as a country”
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He also praised the manufacturing sector’s GDP growth, which increased from less than 4% in 2010 to just over 17% in 2011 and 24% in 2012.
He pointed out that consistent double-digit growth occurred during this time, something that has recently proven elusive.
“You will notice that we began to de-industrialize and experience negative growth starting in 2015,” he remarked.
Industrial infrastructure is important.
Mr. Aganga continued to emphasize the value of industrial infrastructure and how production and logistics can be severely constrained in its absence.
He stated that,
“The lack of electricity alone adds about 20% to 30% of the production cost and of course, the recent increase in fuel subsidy has further increased the cost of production.”
“The problem has persisted due to the poor implementation of various infrastructure development plans”
Standards and compliance
Speaking further, he noted that one of the major problems of Nigeria’s competitiveness in the manufacturing industry was standards.
He stated that,
“Apart from a very low manufacturing base, the major problem of Nigeria’s export of non-oil commodities is standards.
Poor compliance with sanitary conditions has caused Nigeria to have one of the highest rejects of agricultural produce (exports) to Europe and the United States.”
“This results in the excessive use of agrochemicals that exceeds the maximum level permitted”
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