How to reposition Nigeria's manufacturing sector

Nigeria's Minister of Science and Technology, Ogbonnaya Onu, believes that the country's economy could experience a significant positive impact if the manufacturing sector's contribution to GDP were to increase from the current 9% to 15% or even 30%. This ambitious vision for the manufacturing sector is seen as essential for driving economic growth and creating opportunities for job creation and overall development in the country. Ugochukwu Irechukwu, Divisional Head, Institutional Banking at Diamond Bank, also weighed in on the discussion, highlighting key strategies and challenges that need to be addressed in order to reposition Nigeria's manufacturing sector for success. The focus on research and development, access to finance, power supply, infrastructure development, and adoption of new technologies were identified as crucial areas that require attention to drive the growth of the manufacturing industry in Nigeria. One of the key points raised during the discussion was the importance of government support and investment in the manufacturing sector. Irechukwu emphasized that the government has made significant efforts to support manufacturers through initiatives such as long-term investment funds and support from institutions like the Bank of Industry and the Development Bank of Nigeria. These initiatives provide manufacturers with access to low-cost funds and resources to help them expand and grow their businesses. However, challenges such as power supply and infrastructure remain significant obstacles that need to be addressed to enable manufacturers to reduce costs and improve efficiency. Another critical aspect highlighted in the discussion was the need for short-term strategies to boost the manufacturing sector while long-term solutions are being implemented. Access to finance at low interest rates, incentives for foreign investors, and initiatives to attract portfolio investors were identified as quick wins that could immediately benefit manufacturers and stimulate growth in the sector. By focusing on these short-term solutions, manufacturers can address immediate challenges and create a conducive environment for sustainable growth and development. Furthermore, the conversation also delved into the importance of preparing for the future of production in the context of the fourth industrial revolution. With technological disruptions such as robotics, artificial intelligence, and additive manufacturing reshaping the global manufacturing landscape, there is a growing need for African countries, including Nigeria, to adapt and embrace these innovations to remain competitive in the global market. While addressing basic challenges like power supply and infrastructure is crucial, there is also a need to invest in new technologies and enhance skills and capabilities to leverage the opportunities presented by the fourth industrial revolution. In conclusion, the road to revitalizing Nigeria's manufacturing sector and driving economic growth is paved with both short-term strategies and long-term initiatives. By addressing key challenges such as access to finance, power supply, infrastructure development, and technology adoption, Nigeria can create a conducive environment for manufacturers to thrive and contribute significantly to the country's GDP. With the right support from the government, partnerships with the private sector, and a focus on innovation and competitiveness, Nigeria's manufacturing sector has the potential to experience a transformative growth trajectory that will benefit the economy and society at large.