- Says A ‘Newly Industrialized Nigeria Within 10 Years Is possible
Business magnate and President of Dangote Group, Aliko Dangote has identified priority investments in infrastructure and core industries among other recommendations, as vital panaceas to boost Nigeria’s economy to its desired level among contemporary nations and in the world overall.
Against the background of the declining fortune of the manufacturing sector, the Africa’s wealthiest man urged the Federal Government to employ strategically, prioritise investments in infrastructure to reverse the trend and boost Nigeria’s economy to its desired level among contemporary nations and in the world over.
In his address as guest speaker at the landmark 50th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN) and the 2nd Adeola Odutola Lecture held in Lagos, Dangote who expressed optimism also noted that with the collective effort of all stakeholders, it is feasible to move Nigeria from “developing nation” to “newly industrialised nation.”
Dangote said it is imperative that the familiar challenges limiting the pace of industrialisation are frontally addressed while setting a clear-cut agenda for the next 10 years. He identified priority investments in infrastructure and core industries, among other recommendations, as vital panaceas to boost Nigeria’s economy to its desired level among contemporary nations and in the world overall.
During the AGM, themed: ‘An Agenda for Nigeria’s Industrialisation for the Next Decade’, where a Blueprint for the Accelerated Development of Manufacturing in Nigeria 2.0 was unveiled, the foremost entrepreneur advocated jail terms for dealers in foreign textile materials to discourage imports and boost local production in the textile industry. For legislative backup, he also sought the enactment of a law prohibiting the sale of imported fabrics in the country.
Dangote identified various measures which needed to be put in place to allow Nigeria to speed up its industrialisation process and development growth. These measures included investment in infrastructure; creation of a business-enabling Policy Framework; development of core industries; macroeconomic stability; facilitation of sectoral linkages and sustaining of the federal government’s recent efforts at ensuring the security of lives, properties, and investments across the nation.
The business titan examined the performance of the industrial sector in Nigeria; identified the nexus between industrialisation and economic development with Nigeria and China as a case study; analysed the manufacturing sector in the country with a focus on its growth trajectory, current status and challenges, and set an agenda for the next ten years with an implementation roadmap.
According to him, “the experience in various parts of the world has shown that industrialisation drives economic growth & development, which improves living standards as evidenced by the high output and per capita income in industrialised countries.
“The rate of industrialisation in Nigeria has been slow as evidenced by the low contribution of manufacturing to GDP, poor capacity utilisation and constrained export of manufactured products within and outside the continent. For instance, Nigeria’s share of world output of 0.41%, ranked 29th in the world which is unimpressive, considering its size and resource endowments. It ranks poorly when compared with India at (3.1%), South Korea (3.0%) and China (28.7%).
Security and rule of law, industry-oriented government policy; adequate infrastructure; industry-oriented Research & Development (R&D); a well-developed SME sector; building of human capacity, and embrace of technology to improve efficiency through automation of manufacturing processes.
On the current status of the manufacturing sector, Dangote noted that manufacturing was singled out in the Nigerian Industrial Revolution Plan (NIRP) as the driver of industrialisation and economic growth.
“The contribution of manufacturing to Real GDP in Nigeria contrasts with what was obtained in countries like China (27.16% in 2019); Germany (19.11%); Japan (20.74%) and South Africa (13.53%). To drive industrialisation and sustained economic growth in Nigeria, it is important that deliberate policies that are manufacturing-specific should be designed to support manufacturing activities and address the perennial challenges of the sector. It is important to note that the current government policies if fully implemented, are good enough to address most of the challenges we are now facing,” he said.
Among manufacturing challenges, he identified the acute shortage of forex; the dearth of long-term funds; limited infrastructure; policy inconsistency/implementation/enforcement; over-regulation; multiple and high taxes for the industries (the manufacturing sector is beset with over thirty statutory taxes, levies, fees, etc. charged at multiple tiers of government), and insecurity.
According to Dangote, “In consideration of the afore-mentioned challenges, there is an urgent need for a shift in policy approach and strategy to reposition the manufacturing sector for growth over the next ten years. It is imperative that the familiar challenges limiting the pace of industrialisation are frontally addressed while setting a clear-cut agenda for the next 10 years.”
While setting an agenda for the next 10 years, Dangote said, “To achieve industrialisation goals, it is necessary for a nation to formulate plans and policies that will enhance and sustain industrial development. Sustainable industrial development involves the establishment of a conducive environment to encourage investment and ensure efficient usage of resources to increase the productivity and growth of the nation.
“Nigeria needs to henceforth intensify efforts at promoting industrialisation with a specific focus on the attainment of the following targets in the next 10 years: 15% manufacturing sector growth, 20% manufacturing contribution to GDP, 15% growth in export of manufactured products, 10% increase in the share of manufacturing to total export merchandise, stronger inter-industry linkage between SMEs and large corporations, improved manufacturing contribution to Government tax revenue and 20% increase in manufacturing employment.”
In his conclusion, Dangote noted, “The drive to transform Nigeria into an industrialised nation has been a consistent goal of successive governments since independence. It is therefore imperative that we focus on sectors with great potential for inclusive growth. Sustainability must be central to our industrial development agenda.
“There is also the need for the government (at all tiers) to ensure that they consult widely with relevant stakeholders when taking far-reaching decisions on key sectors of the economy. This will make it much easier for manufacturers to make long-term business plans. In addition, policies that have been “tried and tested” should be backed with an Act of parliament to give them legal backing and make them less susceptible to arbitrary changes by successive governments.
“Industrialisation, driven by manufacturing, has the capacity to facilitate enduring economic growth. The transition mechanism entails the availability of required resources, adoption of appropriate technology, provision of a favourable operating environment, human capital development, stable macroeconomic environment and adequate infrastructure. With the collective effort of all stakeholders, it is feasible to move Nigeria from a “developing nation” to “newly industrialised nation” status within the next 10 years.”
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L-R: Engr. Mansur Ahmed, President, Manufacturers Association of Nigeria (MAN); Aliko Dangote, President/CE, Dangote Industries Limited (Guest lecturer); Adewale Bakare, Director, Industrial Development Directorate, representing the Minister of Industry, Trade and Investment and Ousseine Diallo, Secreterie Executif de la, FOPAO, Côte d’Ivoire during 50th Annual General Meeting (AGM) of Manufacturers Association of Nigeria and 2nd Adeola Odutola Lecture and Presidential Luncheon in Lagos on Tuesday, October 18, 2022
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