The parlous state of the economy fueled by the dwindling forex reserve as well as depreciating value of the naira has made the patronage of locally-made goods rather inevitable, reports Ibrahim Apekhade Yusuf
One of the indulgences of the Nigerian middle-class is the fact that they have such an eclectic taste in virtually anything you can think of.
Whether in music, food, fashion, housing, leisure, holiday destination, cars, choice of wines, to mention just a few, only the best is good enough and it has to come from the overseas’ market!
To observers, however, it would have been better if this craze for foreign goods is done sparingly but the way and manner majority of Nigerians go about indulging themselves with foreign-made cum imported goods has been at the expense of the economy and has left the local industries completely prostrate.
The result is that almost all the major businesses done locally from oil and gas to road construction, engineering, security, real estate, aviation, hospitality, among others are barely managing to survive as they can hardly compete with their foreign counterparts whether here or abroad because of little or no patronage from Nigerians.
Manufacturers’ tales of woes
Manufacturers across the country have continued to lament what they term the ripple effects of low patronage by majority of Nigerians.
According to Manufacturers Association of Nigeria, at least 222 small-scale businesses have closed shops, leading to 180,000 job losses in the last one year alone as a result of apathy to local products.
Stakeholders in the economy including MAN, the National Association of Small and Medium Enterprises and the Lagos Chamber of Commerce and Industry while speaking at the launch of a report on the manufacturing sector by NOI Polls Limited, in collaboration with the Centre for the Studies of Economies of Africa, recently noted that the productivity of local producers have been negatively affected as a result of under capacity utilisation.
The Director, Economics and Statistics, MAN, Mr. Ambrose Oruche, lamented the unavailability of productive inputs, stating that this was the major challenge confronting manufacturers.
High interest rates, poor power supply, policy inconsistency, poor patronage of locally manufactured products, poor supporting infrastructure, among others, he stressed, remain the bane of the manufacturers.
Echoing similar sentiments, the Chief Executive/Managing Director, IPWA Plc, Sulaimon Ibikunle Tella said the manufacturing sector has not benefitted from strong political will on the part of government.
Going down memory lane, he recalled that the Local Content Act policy which was expected to boost the capacity of local producers has been left to gather dust.
“Government should look inward to ascertain the real picture of the industry in order to fine lasting solution to the problems. Also, the Standards Organisation of Nigeria (SON) should be adequately funded and equipped with standard laboratories for products testing and subsequent certification. For instance, for a locally made product to be accepted in the international market like Europe, the product must meet specific quality certification in European standard. For the paint industry, it requires a lot of money for our products to get European certification.
“What we need to realise is that some locally made products are far better than foreign or imported goods. So, the consumers need to look inward and patronise Nigerian products for our industries to thrive.”
Renewed clamour for made-in-Nigeria goods
Speaking with a cross-section of experts on the possible options open to Nigeriansa this hard times, they said a holistic approach is what is required to address the present challenges.
Specifically, Mr. Tamuno Francis, a public affairs analyst said what is assailing the country at the moment is not new to Nigeria but a global trend.
According to him, most economies that depend on commodities for their national income are going through major decline in their external earnings and for Nigeria, in particular, this has led to negative economic growth, dwindling foreign reserves, stress on balance of payment and mounting pressure on local currency exchange rate relative to major currencies.
Interestingly since the present economic downturn, there have been strident calls for Nigerians to look inwards in order to cushion the effects of the hard times.
Mr Isaac Onukwuba, a director at the National Orientation Agency (NOA) in Enugu is one those who has raised his voice above the din in the raging debate over the need for Nigerians to patronise local goods and services.
Onukwuba said the craze and love for foreign made goods and services by Nigerians would compound the hardship in the country.
According to him, the present economic downturn will be reversed if Nigerians produce, patronise, sell and consume locally made goods and services.
Onukwuba said this while commenting on made-in-Nigeria utility vehicle called “Transform Nigeria Vehicle’’ manufactured by Innoson Motors in Nnewi, Anambra.
The director said that buying and selling made-in-Nigeria products and services should be done with the highest sense of national pride because “this is our own.’’
He explained that this was the only way we could gain from the rest of the world.
“Promoting made-in-Nigeria is the surest way of making Nigeria and Nigerians survive the current situation.
“Those countries where we run to get all these imported products applied the same principles to build their economy.’’
Like other chambers across the country, the Abuja Chamber of Commerce and Industry (ACCI) has called on local industrialists and other stakeholders in the manufacturing sector to step up production to boost the nation’s economy. Mr Jude Igwe, the Chairman, Organising Committee for the forthcoming 11th Abuja International Trade Fair, gave the advice at a news conference recently.
According to him, the connection between the low revenue and depletion of existing reserves is the reliance on a sole product. This, he said, had encouraged massive importation of goods and services to the detriment of local production of these goods.
“Experience has now shown that our economy can no longer be sustained by that and that is why the chamber has, after careful consideration, chosen the theme `Make it in Nigeria’ as very apt. “We must make it in Nigeria if we must find our way out of the current economic challenges. There are no two ways,’’ Igwe said.
In the view of the Managing Director Innoson Group of Companies, Dr Innocent Chukwuma, adequate investment on technological advancement would pave way for local manufacturers and as well proffer lasting solution to the present economic struggle in the country.
The Innoson boss who spoke during a one day visit to the Centre for Basic Space Science (CBSS), University of Nigeria, Nsukka, observed that for any country to become an exporting nation, it has to patronise locally made goods to boost local production and the country’s economy.
The decline in technological advancement at rural communities were the causes of the present economic challenges in the country, he said, stressing that there is need for local manufacturers to collaborate with government research agencies and universities, in order to actualise the vision of the present administration in the country for Nigerians to patronise locally made goods.
He also said that developed countries like America and China at one time went through the same economic hardship but they did not run away from their countries rather they joined hands to cushion the effect of its economy.
Institutional support for made-in-Nigeria goods
The Federal Government is on the verge of kick-starting a campaign on made-in-Nigeria goods, a move designed to encourage Nigerians to patronise locally-produced goods and services.
This is part of the measures being adopted by the government to conserve foreign exchange, stimulate economic growth and create jobs.
The government has also hinted of plans to commence the implementation of the National Industrial Revolution Plan (NIRP).
Minister of Budget and National Planning, Senator Udoma Udo Udoma, made the disclosure in Abuja recently while inaugurating the Joint National Planning Committee for the 22nd Nigeria Economic Summit (NES#22), scheduled from 10th-12th of October, 2016 to be anchored by the Nigeria Economic Summit Group (NESG).
The NESG, which is currently led by Mr. Laoye Jaiyeola, an astute technocrat prides itself as Nigeria’s most influential and leading private sector think-tank with a mandate to promote and champion the reform of the Nigerian economy into an open, globally competitive economy.
Over the years, the NESG has been strategically involved in stimulating economic policy discourse in Nigeria. The Group has worked harmoniously with the Nigeria’s development programme and it is in the forefront of actual implementation of the country’s development programmes through its advocacy and monitoring activities.
Shedding light on the proposed summit, the minister said it will essentially be used to galvanise support from stakeholders on the need to commit to structural and fiscal changes required to strengthen the Nigerian economy.
“It starts with changing our orientation in consumption pattern by shifting our mindset and preference for anything imported and foreign made to patronising made-in-Nigeria products,” he said.
The minister, however, acknowledged that there were challenges with patronising locally-made products, adding that the main issue was that people complain about quality and the sub-standard nature of the products.
While acknowledging that there was a degree of truth in this, he pointed out that “we must challenge ourselves to do better.”
“By encouraging patronage, we are challenging our manufacturers to invest in the technology required to upscale our quality. We are therefore calling on all our economic agents (government, corporate organisations and individuals) to re-orientate to Nigerian made goods and services first, before considering imported products,” Udoma stated.
He affirmed that NES#22 was expected to serve as a strong platform to sharpen the focus of the conversation and extract tangible commitments from the participants.
According to him, the major thrust of the summit would be to facilitate stakeholders’ discussions and agreements on the practical issues, opportunities, policies and regulations needed to help Nigerian made goods a success in the country.
Udoma, who underscored the importance of the annual NES, said many of the reform policy initiatives that have underpinned the evolution of the nation’s economic growth strategies in the past 23 years were strongly influenced by debates and deliberations during the summits.
The minister added that for instance, some of the recommendations of last year’s summit were reflected in this year’s budget and the strategic implementation plan of Budget 2016.
In designing the agenda for NES#22, he admonished the Joint Planning Committee to take cognisance of the current administration’s commitment to repositioning the economy, creating jobs for the teeming jobless youths, as well as supporting vulnerable groups.
Justifying the need for the theme, the NESG secretariat said the theme ‘Made in Nigeria’ will be used to embody the imperative to commit to the structural and fiscal changes required to strengthen the Nigerian economy.
“Past Nigerian Economic Summits have made recommendations on self-sufficiency in local production and an export-driven economy. With our current economic realities, this is the perfect opportunity to articulate a national discussion on ‘Made in Nigeria’ to promote the goods and services that are already up to standards for consumption, encourage exports and increase opportunities for SMEs.”
A review of the NESG template in support of made-in-Nigeria goods
The Federal Government has set machinery in motion to encourage more production and consumption of made in Nigeria goods and services while maintaining a trade balance between imports and exports across the globe.
The long term goals is to help reinvigorate moribund industries and services that have shown potentials in the past and curtail the growing demand for foreign exchange for consumption rather than capital products and equipment.
The government holds the view and very strongly too that the key outcomes will include a practical roadmap that will contextualise “Made in Nigeria” as an economic growth and development strategy for our short, medium and long term development, partnerships and policies to deliver desired results and potentials for exports to increase foreign exchange earnings and shore up our reserves. The Summit will also emphasise the strong need for execution and proper measurement of results on the part of all stakeholders.
Giving further insight on the Summit, the NESG secretariat said the event will begin with Ministry of Budget and National Planning Day and a plenary focusing on policy dialogue and macroeconomic environment.
Besides, there will be a roundtable with the Vice President and state governors on job creation, skills and employment session with participants drawn from experts across sectors.
NES #22 will provide a platform to sharpen the focus of the conversation. The key thrust would be to facilitate stakeholders’ discussions/agreements on the practical issues, opportunities, policies and regulations needed for “Made in Nigeria” to become an economic growth and development agenda. It will also seek to work out the strategies to achieve self-sufficiency and value-addition capacities for several products and services in the shortest possible time. The sub-themes of the Summit shall deliberate on the macroeconomic environment; ease of doing business; stakeholders’ behaviours and attitudes; access to finance; infrastructure; quality and standards; technology and innovation; as well as job creation, skills and youth employment.
But will the interface and discussion session being spearheaded by the NESG turn the tide on the economy?
Mr. Popoola Tijani, a economist offers plausible explanation. “Much as NESG template for the retooling of the economy is apt, all hands needs to be on deck to achieve the ultimate goal.”
