Tag: MAN

The Manufacturers Association of Nigeria (MAN) and Raw Materials Research and Development Council (RMRDC) have partnered to draw a roadmap for the industrialization of the country.

Speaking at a press conference in Lagos announce the 2023 Nigeria Manufacturing and Equipment Expo (NME) and the Nigerian Raw Materials Expo (NIRAM) scheduled for between November 21 and 23, 2023, at Federal Palace Hotel, Lagos, MAN President Otunba Francis Meshioye, said disruptive technologies such as Blockchain, Internet of Things, Machine Learning, Artificial Intelligence, Green Energy, and Augmented Reality, are set to shape the future, manufacturers must harness these innovations to foster self-sufficiency.

The expo which is being oganised by MAN and RMRDC, in collaboration with the Federal Ministry of Industry, Trade and Investment and the Federal Ministry of Science, Technology and Innovation has: ‘Future Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria’ as its theme.

Meshioye said the theme of the expo holds particular significance in the current context, highlighting the need for stakeholders to engage in in-depth discussions on the importance of forward-thinking, environmentally responsible, and industry-supportive strategies in manufacturing.

According to him, this underscores manufacturing’s pivotal role as a catalyst for economic and social development within the region. “The NME & NIRAM Expo, recognized as the preeminent and all-encompassing event covering every facet of the manufacturing value chain, is gearing up to tackle pivotal issues in line with our theme, ‘Future Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria,’ Meshioye stated.

The MAN president said this year, the Association’s focus is squarely on discussions and solutions that will drive the manufacturing industry towards a prosperous and sustainable future. “We’ll explore innovative strategies, cutting-edge technologies, and sustainable practices that can contribute to the growth of the entire African manufacturing ecosystem,” he said.

 “It’s equally essential not to lose sight of the importance of harnessing locally sourced raw materials and availing oneself of critical support services such as financing and logistics. These elements will play a central role in our discussions during the event,” he added, insisting that manufacturers must remain committed to utilising locally sourced raw materials.

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Meshioye also informed that consistent with MAN’s tradition, the NME, now in its eight edition, will be co-located with the Manufacturing Partnership for African Development (mPAD) conference, a strategic forum uniting thought leaders in the manufacturing sector, policymakers, and government regulatory agencies to address existing challenges and generate innovative ideas for industry growth and development.

Concurrently, the RMRDC will offer master classes featuring the latest research findings delivered by carefully selected experts, including the Women in Manufacturing session, which will afford accomplished women in the field the opportunity to share their experiences with aspiring female manufacturers who may be considering entry into the sector.

The Director-General/CEO, RMRDC, Prof. Hussaini Doko Ibrahim, described the Council’s collaboration with MAN as “Strategic,” noting that the roles of both orgnaisations complement each other.

“This underscores our partnership in co-hosting these yearly expositions to maximise the benefits to our common stakeholders, who continually aim to reduce the cost of manufacturing amid the rising cost of raw materials and process equipment,” the DG, who was represented by RMRDC’s Director Business Innovation Centre, Mr. John Obekpa, said.

According to him, the Council has assiduously worked over the years with stakeholders to increase manufacturers’ access to both basic and secondary raw materials.

“The primary production of several strategic agricultural raw materials like cotton, sorghum, tomatoes, cocoa, sheet trees, oil palms, soya beans, cane sugar, cashew, fruits and sesame have been boosted by providing specific farmers with improved seeds or seedlings as the case might be,” he said.

Prof. Ibrahim also said the establishment of over 40 pilot plants at the recently inaugurated Raw Materials and Development Council’s Technology and Innovation Complex, Obasanjo Space Centre, Airport Road, Abuja, is a testimony to the Council’s unwavering commitment to ensuring competitiveness in raw materials and products development.

He said the pilot plants at the complex signpost the Nigerian “I Can Do spirit” as it has emerged as a unique manufacturers’ hub.

“It beckons venture capitalists to replicate the plants across the country for increased manufacturing activities even as their feasibility/viability and the capability of Nigerian Engineers to design and fabricate manufacturing equipment have been astutely demonstrated by the quality of indigenous engineering prowess brought to bear in putting the Technology and Innovation Complex together,” Ibrahim said

He also said the centre has developed technologies that can produce caustic soda, soap noodles, calcium carbonate, lovastatin, herbal medicine, calcined kaolin, chemicals, talc, hydrated lime, essential oil, API from Mushrooms, Artemesia and triple concentrate tomato paste, which are secondary raw materials which are hitherto with limited local inputs and heavily imported.

The RMRDC boss, while noting that the technical feasibility/viability of all these have been ascertained and need scaling up for investment, said the these innovations and their products would be on display at the expo alongside other local raw materials and products with the hope that a detailed exposê of the nation’s raw materials and their potential to grow the manufacturing sector will be made.

British American Tobacco (Nigeria) Limited (BATN)  said it remained  committed to sustainability and corporate responsibility.

 The company said this was why it was collaborating with the Manufacturers Association of Nigeria (MAN), the Nigerian Climate Innovation Center (NCIC) and others to convene the Private Sector Environment, Social and Governance (ESG Forum) in Nigeria.

 Speaking at a press conference in Lagos yesterday, the Director, External Affairs, BAT West and Central Africa, Odiri Erewa-Meggison, said the ESG Forum is a private sector-led initiative aimed at promoting sustainable and responsible business practices within the manufacturing sector.

 She said the maiden edition of the pan-African forum with the theme “Is the private sector accountable: A case for sustainable practices” focuses on driving climate resilience and fostering inclusive growth.

  Erewa-Meggison stated that the forum also seeks to facilitate an open dialogue among industry stakeholders to assess the extent to which the private sector is embracing sustainable practices and implementing actions to safeguard the environment and support the communities in which they operate.

  Key objectives of the forum include highlighting the importance of ESG principles in shaping sustainable manufacturing practices; encouraging the manufacturing industry to adopt responsible and climate-resilient business approaches; showcasing best practices and successful case studies of organisations integrating sustainability into their core operations; and fostering a collective commitment to drive positive change, both environmentally and socially.

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 “This is important for us at BAT because we are transforming our business; we are for a better future and transforming means that we have to be deliberate in everything we do, how we give back to the society from which we derive our livelihood from and also how we operate within the strict and relevant governance structures that we found ourselves in whichever country we operate in,” she stated.

 The BAT Director, therefore, said it was important that “We form a formidable alliance with like-minded people who also are willing to go on the same journey with us, who also want to make sure that they protect the environment.

 “You can see that there is a lot change coming from the climate perspective and if we are not deliberate as we say we want to grow our business in a sustainable way, we will not protect the environment in a sustained way; it’s going to be difficult for us.”

 Erewa-Meggison emphasized that this ESG Forum will trigger a mindset change in favour of adopting ESG practices by the private sector.

 “We want to be the catalyst that drives change within West and Central Africa, across pan-Africa actually, starting with Nigeria, starting from this year, bringing people who can come together on this journey with us because together we can move mountains,” she stated.

 BAT Nigeria’s Managing Director Yarub Al-Bahrani described the forum as “Quite timely and relevant.” According to him, it presents a pivotal opportunity for the private sector in Africa to not only address pressing ESG challenges but also to champion sustainable practices that will lead to lasting outcomes across the continent.

 “We need to begin holding ourselves accountable and this is why we have convened this forum,” Al-Bahrani said, adding, “Convening the ESG Forum is a testament to our unwavering commitment to sustainability and corporate responsibility.”

 MAN’s Director-General, Segun Ajaiyi-Kadir, commended the private sector’s collaboration. Describing the forum as “A historic milestone,” he said it will unite the private sector to drive corporate responsibility and accountability for sustainable growth and development.

 “Sustainability and corporate accountability are no longer buzzwords; they are the cornerstones of our shared future. Through collaboration, innovation, and responsibility, we can shape an inclusive and resilient path towards a carbon-neutral economy and every individual and organization plays a vital part in this journey,” Ajaiyi-Kadir said.

  Also speaking, Country Director, Enactus Nigeria, Mr. Michael Ajayi, said the cost of inaction in the face of deadly extreme weather disasters such as floods, heat waves, wildfires, and drought, exacerbated by human-induced climate change on man-kind is not only far reaching, but can consume everybody.

 He said this is part of the reasons why the consortium of private sector organisations behind the forum, including others that will join later are taking the lead to do something about the situation.

 The purpose really is about holding ourselves accountable, leading the conversation about responsible practices, and ensuring that private sector organisations not only prioritize putting the right governance structure in place, but also make the necessary investments in technology and innovation that promote Just Transitioning while reducing the potential negative impact of human-induced climate change,” Ajayi said.

 Other partnering private sector organisations for the ESG Forum, which is scheduled to hold at Eko Hotel, in Lagos, on Wednesday, November 8, 2023, include Nigerian Bottling Company (NBC), Blue Echo Foundation, Stanbic IBTC, Sterling One Foundation, and Enactus Nigeria.

Vice President, Manufacturers Association of Nigeria (MAN), Southwest Zone, Dr. Kamoru Yusuf highlights areas of focus to enhance foreign exchange management. Adekunle Jimoh reports

There is no doubt that the economy is facing challenges just like other countries, especially developing countries or what we regard as third world nations.

Free Trade Zone, lost tax and revenue Part of the possible solution is the immediate review of the policy on the operation at the free trade zones (FTZs), which has been subjected to serious abuses with little or no value addition to the economy nor generating foreign exchange (forex) to the country. The government needs to investigate and harvest the comprehensive list of the companies who registered under the FTZs, including the claimed value of their investments.

It is observed that 60 per cent of the goods coming into the country from Asia are finished products which can be valued around $800 million some of which are substandard. As a result of this, the Nigeria Customs Service is losing about N300 billion, which is supposed to be generated through duty revenue monthly but which some of the products mentioned earlier, were imported under the disguise of the FTZ investments. Painfully, the law governing the Free Trade Zone prevents the Federal Inland Revenue Service (FIRS) from generating taxes on all the goods brought in through the FTZs.

It is worthy to note that these goods will be sold in naira and the importers are wanting to repatriate the money to their home country in dollars and as they have no other source of getting the money, they then resolved to go to the black market since the goods were brought into the country in a dishonestly. It is, therefore, evident that they can afford to buy the dollar at any rate because they already have export rebates from their country for the finished goods exported to Nigeria; hence their patronage of black market!

We, therefore, wish to appeal to President Bola Tinubu through the Minister of Industry, Trade and Investment, to institute an inquiry into the operations of the FTZs to audit the number of companies registered under them, their businesses, models and their initial claims when registered and compare these with the data with the Nigerian Customs Service (NCS) for the value of goods coming into the country through  the FTZs, which is expected to serve as part of their Key Performance Indicators (KPI) with the ministry within a time frame as decided by Mr. President.

It is worrisome that most of the importers in FTZs claiming to be manufacturers and investors are partly the  cause of the problem in the forex black market as they are bringing products of their parent companies into Nigeria under the guise of FTZ without paying appropriate taxes and duties, while the goods end up being sold within custom territories.

Nigeria Customs Service (NCS)

Also, I want recommend that Mr. President should direct the Nigerian Customs Service (NCS), which has a robust platform to submit the list of importers who have been bringing goods into the country in the name of free FTZ to furnish the government the relevant information with the value(s) since 2018-till date, to justify the amount that these businesses have repatriated home in the name of FTZs without paying duty or any form of taxes to the Federal Government.

Even those expatriates that produce in the FTZs, using our local mineral resources are not bringing dollars nor are they paying appropriate taxes to the Federal Government; instead, what they are doing is repatriating dollars home.

Declaration of state of emergency in mining sector

Mr. President should also consider as part of the KPI for the Ministry of Solid Minerals  to list the companies that are mining minerals resources from Nigeria such as gold, lithium and tantalum and exporting such. They cannot make Nigeria the country of shipment and make their countries as the beneficiary of the forex because what we need is the proceeds of what they mined and they are to return to the country the requisite repatriation in dollars.

Today, the unverified data has indicated that end users of lithium abroad have brought in their machines and heavy equipment for mining Lithium in Nigeria.This implies that they will mine $1 billion worth of minerals monthly and only $50,000 royalty will be paid to the government. Can anyone justify why Nigerians that are supposed to carry out these mining, sell abroad and bring the proceeds back into Nigeria, do not have access to mining rights? For example in India, which has discovered a large quantity of lithium, the country made the policy to generate forex through Lithium.

Many gold and lithium miners and commodity exporters are keeping about 70 per cent of the forex from their sale proceeds in foreign bank accounts because there is no law that controls the value of the forex earning on their exports through the money that comes back to Nigeria through the Central Bank of Nigeria (CBN).

The Federal Government, as a matter of priority, needs to put in place the same  policy used in the sale of crude oil to that of sales of gold, lithium and other minerals per tonne through the database of Nigeria Export Promotion Council (NEPC).

In addition, the Federal Government might need to initiate a policy that will ensure total ban of exportation of raw metals in the mining sector except wherein, values additions have been created before exportations is allowed.

Need for urgent intervention

in the steel sector

Steel sector plays similar role as that of cement, sugar, fertiliser and petrochemical industries, all of which can provide the needed tripod-support for the development of other light industries in the country.The incremental and progressive results being witnessed by these industries were the outcome of the success story of the indigenous players in the cement industry over the past nine years and with reduced stake from the offshore investors.The best model is to indigenise and empower Nigerians and ensure that the strategy as encapsulated in the Nigeria Industrialisation Revolution Plan (NIRP) creates avenues for whosoever wishes to partner the local giants who have verifiable track record in the industry to do so.

Ajaokuta Steel Rolling Mill and what is to be done

Another point of urgent attention is for Mr. President to make as part of the Minister’s KPI the Ajaokuta Steel Complex, which is a great national asset,  not to be in the hands of foreigners. This is because if this happens, all its benefit will be repatriated by them. It is better with Nigerians as there are capable citizens who can make Ajaokuta Steel Complex to run in full capacity in the same way it is done in the cement and the petrochemical industries.

All accruing benefits will remain in our country without having to be repatriated in forex. All that is required is for the government to identify some patriotic Nigerians that will make this happen within a very short time and with maximum support by the government, such investment will remain in Nigeria and with Nigerians along with its productivity and prosperity and reward for the nation.

It is also necessary to remind ourselves of the first bitter lesson that the government experienced with over 15 years setback during the concession of Ajaokuta Steel to foreigners who did not add any value to the country. Rather, the matter ended up in an unnecessary and distracting litigations and at the end of the day, half a billion dollars was claimed from the Federal Government! This is so sad because such money could have been injected into the economy to provide infrastructures, create more jobs and used to further stabilise the economy.

Another bitter lesson is the Delta Steel Industy, which was sold to foreigners at a token value of N31 billion, despite that they could not make the place to work and could not make us proud with such giant steel plant! So, what magic can they perform in Ajaokuta that Nigerians cannot do? Let me remind you that skill acquisition is the same all over the world, only skin colour is different.

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Another way that could be easily employed is for the government to channel the Comprehensive Import Supervisory Scheme (CISS) charges paid to the NCS over the years, as bailout and support to the steel sector. Such money should be utilised to drive the industrial revolution that will galvanise national industrial development.

There will be no reason for the government to be worried about bringing Ajaokuta back to life. We have the resources as a nation and we also have expertise who can make it work.  We don’t need foreign investors to do it. Ajaokuta can be back again to produce automobile cars and other associated raw materials for downstream industries.

You will agree with me that with the gigantic size of Ajaokuta, the complex should not focus on the middle-steel production, which are massively available around Nigeria and West Africa. Rather, it should focus on the configuration of a high class production of steel products such as slab caster, hot rolled coils and plates, and foundry for the production of the required machinery and tools in the country; given that the 50 per cent requirement for these high-class configuration are already available in Ajaokuta. Although we still welcome more opinions and contributions towards developing our sector for better performance to the benefit of our dear country and humanity at large.

There are lot of patriotic Nigeria who are  ready to serve their country truthfully. These individuals are owners of fully established business brands in Nigerians that can be trusted with deliverables on state-of-the-art which will have positive impacts on the  economy.

Nigeria Export Promotion Council

This supervisory agency needs to have monthly reports of the export proceeds with the accrued revenue generated from the exports from the raw materials such that the proceeds won’t be starched away into individual and corporate foreign bank accounts abroad instead of CBN. The Presidency needs to look into this, especially with many unethical practices being practised in the mining sector.  

Federal Inland Revenue Service

 It may be necessary that FIRS needs to have field offices within the FTZs across the country, as many of the investors are importing finished goods instead of following the FTZs Acts of the percentages of the ‘value additions’.  Where mining and extraction of natural resources are taking place, 70 to 80 per cent of such exported goods and shipments are done in these zones “undocumented” by NCS at the exit ports. Therefore, actions need to be taken in this direction if the government wants to come out of the “woods of this forex maladies”.

Any investor coming into Nigeria should be asked to submit their business plan certified by international advisory firm, because many investors that come in usually “overstate” their investment portfolios with the intention of ‘fooling’ our government because there is no demand for the verification which calls for audit and proper monitoring as some of them will come into the country with just $10 million and build up same in the documentations with the supervisory agency of the government to a $100 million investment since there is no proper monitoring or organisations that checkmate them.

The Federal Government needs an all-inclusive review of the 43 items restricted from accessing forex in the official trade window as this will put further pressure on the official market with an indirect impact on the parallel market as well.

The Price Verification Systems recently launched by the CBN will checkmate round tripping as well as curb price inflation. Also, the platform is having technical issues of uploading line items using XML format. Wherein the XLS format is utilised, there are missing items on the uploaded items. The approval, rejections time and period needs review as some takes more than two to three weeks before approval or rejection notice is received. These observed challenges need to be looked into for adequate enhancement and engagements of the platforms in tandem with the set objectives it’s set out to achieve.

The Federal Government needs to continue with the bold steps it has already taken in the liberalisation of the forex market and the eventual subsidy removals on petroleum products, which in the long terms, if these suggestions are followed, with further attendant consultations, will yield a greater impact and turn around the country’s economy for the good of all.

The economy and African Continental

Free Trade Area

The only way Nigeria can participate in the African Continental Free Trade Area (AfCFTA) and compete among countries on the continent is to develop our giant industries. We can look at China, which always underwrite their capital projects under Sinosure-China Credit Insurance Corporation.

The Federal Government should also borrow a leaf from other developed nations as well as some African countries by creating platforms for credit insurance underwriters in order to reduce the huge risks involved in capital projects. The government also needs to create more funding windows and other support infrastructure to elicit rapid industrial development.

There cannot be significant growth in the sector without the intervention by the Federal Government when necessary.  The government should be the driving force behind the steel industry, which has the potential to resolve part of our social unrest by getting thousands of unemployed youths off the streets through direct and indirect job opportunities.

The Manufacturers Association of Nigeria (MAN) has described the reversal of the 43 items on the prohibition list by the Central Bank of Nigeria (CBN) “as not only dangerous but also very unhealthy for the nation’s economy”.

MAN said the reversal is a policy summersault.

Its Vice President, Southwest Zone, Dr. Kamoru Yusuf, who is also the Chairman Basic Metal, Iron and Steel and Fabricated Metal Products, said the country is at a very dangerous situation.

He added that the economy is exposed to numerous challenges and risks.

Said he: “The effect of the reversal and removal of ban on the 43 items will create a serious setback on the productive sector, thereby impacting negatively on virtually all other critical areas such as unemployment, youth restiveness, wrong declaration at the ports, importation and flooding of Nigeria’s market with substandard products and above all, proliferation of the country with arms and ammunitions.

“Most financial institutions are really confused, and this policy, if not quickly reversed, may lead to the distress of some banks while massive loss of jobs is looming. This fear is open for the CBN to verify.”

The MAN chief, however, suggested solutions in free trade zone, lost tax and revenue.

“Part of the possible solution is the immediate review of the policy surrounding the operation at the free trade zone in Nigeria, which has been subjected to serious abuses with little or no value addition to the economy nor generating FX to the country.

“The government needs to investigate and harvest the comprehensive list of the companies who registered under the free trade zone, including the claimed value of their investments.

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“We, therefore, wish to appeal to Mr. President, Bola Tinubu, through the Minister of Industry, Trade and Investment, to institute an inquiry into the operations of the FTZ to audit the number of companies registered under free trade zone, their business activities/model and their initial claim when registered and compare this with the data with the Nigerian Customs for the value of goods coming into the country,’’ he added.

 through  the FTZ which is expected to serve as part of their KPI with the Ministry within a time frame as decided by Mr. President.

He said the steel sector plays similar role as that of cement, sugar, fertilizer and petrochemical industries, all of which can provide the needed tripod-support for the development of other light industries in the country. 

“Federal Government of Nigeria needs an all-inclusive review of the 43 items restricted from accessing FX in the official trade window as this will put further pressure on the official market with an indirect impact on the parallel market as well.

“Federal Government needs to continue with the bold steps it has already taken in the liberalization of the FX market and the eventual subsidy removals on petroleum products, which in the long terms, if these suggestions are followed, with further attendant consultations, will yield a greater impact and turn around the country’s economy for the good of all.”

He said the only way Nigeria can participate successfully in the African Continental Free Trade Area (AfCFTA) and successfully compete among countries in the continent is to develop our giant industries. We can look at China, which always underwrite their capital projects under Sinosure (China Credit Insurance Corporation).

“The Federal Government should also borrow a leaf from other developed nations as well as some African countries by creating platforms for credit insurance underwriters in order to reduce the huge risks involved in capital projects. Government also needs to create more funding windows and other support infrastructure to elicit rapid industrial development.

“There cannot be significant growth in the sector without the intervention by the Federal Government where and when necessary.  Government should be the driving force behind the steel industry, which has the capacity and potential to resolve part of our social unrest by getting thousands of unemployed youths off the streets through direct and indirect job opportunities,” he added.

The Manufacturers Association of Nigeria (MAN) yesterday called on the government to take immediate action to ensure the effective implementation, monitoring and evaluation of adherence to government initiatives aimed at promoting the patronage of Made-in-Nigeria products among its Ministries, Departments and Agencies (MDAs).

MAN President Otunba Francis Meshioye made the call  at the opening ceremony of the Made-in-Nigeria Exhibition (MANEXPO 2023), which kicked off in Lagos, yesterday.

The expo was part of activities lined up for the 51st Annual General Meeting (AGM) of MAN. And its primary purpose was to showcase the strength of manufacturing in Nigeria and canvass for the patronage of Nigerian products.

Meshioye said the effective implementation, monitoring and evaluation of adherence to initiatives aimed at promoting the patronage of made-in-Nigeria products should also be cascaded to sub-nationals, including states and local governments.

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He said MAN acknowledges the contribution of some government policies aimed at improving local content development and patronage, including Executive Orders 003 and 005.

“Undeniably, these (Executive Orders) are clear signals of government’s appreciation of the need to promote local production and encourage patronage of locally manufactured products,” Meshioye stated

He, however, said MAN expects that the policy direction of the administration would focus on deepening domestic production and patronage of made-in-Nigeria products.

 “We envision and anticipate a future in Nigeria where the government will designate a special day on the national calendar as “Proudly Nigeria Day,” the MAN president said.

He said on this special day, all individuals and government MDAs would be encouraged to dress in made-in-Nigeria outfits and prioritize the purchase of products that are locally made.

“Such initiative would serve as catalyst to boost the production and consumption of made-in-Nigeria goods, a crucial milestone in the path towards a virile and competitive manufacturing sector,” Meshioye emphasized.

He expressed manufacturers’ conviction that massive support for the growth of domestic production through the patronage of locally made goods will greatly improve capacity utilization, job creation and manufacturing contribution to the nation’s Gross Domestic Product (GDP).

Meshioye also expressed MAN’s focus and commitment to its advocacy for a conducive business environment and specific targeted policies that will support the patronage of made-in-Nigeria products.

“Indeed, MAN’s commitment to promoting local content development remains a strategic cornerstone for revitalizing our struggling economy.

“MAN reaffirms its commitment to the promotion of high quality and competitive made-in-Nigeria products,” he stated.

The Man president, therefore, urged all manufacturers to continue to innovate and upgrade their manufacturing processes and product standards to foster increased competitiveness.

This, he said, was particularly crucial in light of the potential advantages that the African Continental Free Trade Area (AfCFTA) agreement presents for the manufacturing sector.

Also speaking, the United Nation Industrial Development Organisation (UNIDO) Representative to ECOWAS & Regional Director, Nigeria Regional Hub, His Excellency, Ambassador Jean B. Bakole, underscored the importance of encouraging the production and patronage of made-in-Nigeria products.

His words: “It is a well-known fact that the economy of any nation grows rapidly when locally made goods are promoted through patronage, first by its people then through export.

“Over-dependence on importation of goods weakens the currency, creates unemployment, and consistently reduces the GDP. On the other hand, local production will promote gainful employment for Nigerians and will reduce the dependence on the consumption of foreign products and reduce poverty.”

Bakole, who was Special Guest of Honour, described Nigeria as Africa’s leading economy, noting that as such, Nigeria is expected to make steady progress through accelerating inclusive and sustainable industrial development.

He said in order to achieve this and promote economic growth and sustainable development, “There is need to support local manufacturers/Micro, Small and Medium Enterprises (MSMEs) and start-ups who are involved in producing made-in-Nigeria goods.”

The UNDP chief regretted that over the years, Nigeria has been growing other countries’ economies through over-dependence on imported goods, especially those which have local substitutes.

He, however, said: “Nigeria can easily experience a breakthrough in the quest for local content development and a stable, strong and advanced economy if Nigerians would encourage the production and patronise made-in-Nigeria products.”

Bakole noted that Nigeria is already showing greater interest and providing more support for local production to encourage the growth of local industries, adding that the Federal Government’s intervention in developing local industries will result in a boom in the growth of local businesses.

“Local production of various goods is beginning to gain grounds and the materials produced locally can compete favourably with the imported ones. Nigerians are increasingly using products branded made-in-Nigeria.

“This development will no doubt attract several benefits to the country including an increase in its GDP, generation of employment opportunities and reduction in the cost of production, Bakole said.

He, therefore, called on government to sustain the tempo through appropriate policies, provision of basic infrastructure (energy, roads, etc) and other key incentives as well as effective continued support to MAN and its members.

The inventory of unsold finished products in the manufacturing sector significantly increased to N271.96 billion in the first half of 2023, as compared to N187.08 billion recorded in the corresponding period of 2022.

This indicates a substantial rise of N84.88 billion or 45.4 per cent over this timeframe. However, there was an N11.64 billion or 4.1 per cent decline when compared with the inventory value of N283.6 billion recorded in the second half of 2022.

Manufacturers Association of Nigeria (MAN) Director General Segun Ajayi-Kadir attributed the increase in the inventory of unsold finished products to N271.96 billion in the first half of 2023 to consumers’ weakened purchasing power.

Ajayi-Kadir, in MAN’s ‘Half Yearly Review of the Economy (January – June 2023) released yesterday said the consumers’ weakened purchasing brought was about by diminishing real household income resulting from the ongoing escalation of inflationary pressures.

According to him, the escalation of inflationary pressures, itself, was compounded by the scarcity of naira in the first quarter of the year and the aftermath of the subsidy removal.

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The Half Yearly Review of the Economy presented the summary of finding of the survey of the manufacturing sector by MAN for the first half of 2023.

The document was designed to monitor changes in manufacturing sector performance indicators viz-a-viz the behaviors of macroeconomic and policy environment during the period of the survey.

The focus manufacturing indicators include capacity utilization, production value, inventory, level of utilization of local raw materials, investment, expenditure on alternative energy sources, etc.

Ajayi-Kadir said, for instance, that 2023 started with uncertainty in the economy as a result of the Naira redesign policy of the Central Bank of Nigeria (CBN) that led to naira crunch and the usual dormant economic activities prior to the general election in the second half of 2022.

He said the effects of the naira redesign program and slow economic activities were reflected in the Gross Domestic Product (GDP) data released by the National Bureau of Statistics (NBS), showing that the economy slowed to 2.31 per cent and 2.51 per cent in the first and second quarters respectively. 

Furthermore, the subsidy removal and exchange rate unification policy towards the end of the first half left the economy on the brink of uncertainty, causing a ripple effect that further eroded investors’ confidence.

“As a result, businesses and foreign investors are increasingly wary of committing capital, thereby hindering economic growth and prospects for recovery.

“The combined effect of these is the resultant higher inflationary pressure, which fuels cost of production, reducing consumers’ purchasing power and having a greater impact on the manufacturers,” Ajayi-Kadir said.

The MAN DG, therefore, said it is of utmost importance that the challenges identified by manufacturers in the survey are promptly and effectively addressed. “The sector urgently requires measures to mitigate the adverse effects of these policies and restore its growth trajectory,” he stated.

Director-General, Manufacturing Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, has commended H & Y Furniture Manufacturers for its expansive production capacity and quality of its products.

Ajayi-Kadir led a team of MAN’s executives on a tour of the sprawling factory of  H & Y Furniture Manufacturers, located in the Ikorodu, Lagos State.

The team was conducted on the tour by H & Y Furniture Manufacturers’ Managing Director, Mrs Feyisola Abiru.

MAN applauded the expertise and production capacity of the company after inspecting high capacity machines that process wood for furniture making as well as an in-house academy where young people have the opportunity to enhance their wood furniture making skills.

Abiru said H & Y Furniture Manufacturers is a dynamic and innovative company specialising in the design, production, and installation of high-quality furniture solutions.

According to her, with a legacy dating back to 1997 and a commitment to excellence, H & Y Furniture  has earned a reputation for its modular manufacturing processes, which ensure precision, efficiency, and consistent quality. Whether furnishing corporate offices, educational institutions, hospitality spaces, or residential areas, H&Y’s unique approach combines cutting-edge technology with a focus on durability and innovation.

“This company stands out in the Nigerian furniture market, offering customisable, durable, and aesthetically pleasing products that transform spaces while maintaining a keen eye on environmental sustainability.

“H&Y Furniture Manufacturers is a symbol of timeless innovation and a trusted partner for customers seeking exceptional furniture solutions,’’she added.

“For over a decade, H & Y Furniture Manufacturers has been a registered member of MAN, a frontline advocacy manufacturers’ association established to promote and protect collective interests of manufacturers in Nigeria,” Abiru said.

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Mr. Olumide Owolabi, H & Y Furniture’s Factory Manager, explained that the company has capacity to produce world-class furniture for all categories of clients in Nigeria.

According to him, the company’s production output has been upscaled to meet the rising demands of customers.

Ajayi-Kadir commended the company for its production excellence and commitment to youth empowerment.

“What I admire about the company is its preference for young people, which is where the future belongs. It also has products which will revolutionise the use of furniture in Nigeria. Its modern machines, and dedicated and happy workforce are also fascinating.

“And also looking into the future in terms of expanding his operations, even taking advantage of the African Continental Free Trade Area Agreement, with a market of over 1.4billion people, there is an expansive capacity to grow and the company should be a leading company in Nigeria and should be able to excel in the African continent.

“I wish the Managing Director and team more growth. The environment is tough, there are challenges. It is only when you have resilience and you are focused on the job that you will be able to achieve success. When next visit, I believe the company will be bigger than this,” Ajayi-Kadir said..