Stimulating the economy through local manufacturing

These are hard times for Nigeria and Nigerians. The nation faces serious economic challenges occasioned by dwindling oil prices, essentially because of its over-dependence on oil as a major revenue source.

But this ugly situation can be put under control if the country could muster enough discipline to look inwards and harness its manufacturing potentials. A reactivation of the manufacturing sector will, needless to stress, stimulate the economy. It will provide jobs for the numerous unemployed youths of the country, provide affordable goods for the citizenry, curb the nation’s heavy dependence on imports as well as retain capital within the economy.

Indeed, no nation has moved from poverty to wealth by relying heavily on imports, whether of raw materials or finished goods. A strong industrial base is an absolute necessity. And the place of stable power supply in all of this cannot be over-stressed. This is why the Federal Government must, through the ministries and parastatas, work with industries to enhance their productivity and improve the quality of their products to significantly reduce importation, especially of substandard goods.

There should be a deliberate policy by the government to step up campaign to encourage local procurement of supplies, services and other requirements in order to increase local output and employment level. Also, given that Nigeria is said to have lost over $380 billion to capital flight in the last 30 years because of weaknesses caused by lack of local content in the country’s oil and gas industry, the government should by now be prioritising revenue-focused and in-country value-focused measures as strategic resource extraction options that would increase local content and minimise procurement of industrial material and spare parts from foreign countries.

At the same time, the government must continue to emphasise the need for Nigerians to patronise locally-made goods. Local patronage would make the evolution of the Nigerian Industrial Revolution Plan a reality. Imagine what would happen if 160 million Nigerians consistently buy made-in-Nigeria goods! The multiplier effect on economic growth and development will be quite far-reaching. Not only will the manufacturing and sale of such products create employment for Nigerians, it will also boost internally-generated revenue and prevent capital flight.

Not patronising Nigerian goods and services, on the other hand, means loss of jobs for Nigerians and creation of jobs for other countries.

To stimulate Nigeria’s economy, therefore, we must learn to produce what we consume and consume what we produce. We must learn to stop enriching foreign economies at the detriment of our own economy and people.

That said, it must be emphasised also, without equivocation, that Nigerian entrepreneurs need to up their game. They should, as a matter of fact, make themselves globally competitive to promote and sustain Nigerian products and services. The nation’s current business models need to change for the better.

Rather than delude themselves that Nigerians will patronise made-in-Nigeria goods out of patriotic sentiments as against product quality considerations, local manufacturers must work towards increasing competitiveness and developing a proper business culture.

That will only be done if we build business models that are of world standard. The model will, however, be flawed if it fails to pay attention to some of the key factors that make businesses successful, such as innovation, stocktaking and long-term planning.