Chairman of Dangote Group, Aliko Dangote, has raised the alarm over the latest interest rate of 30% as announced by the Central Bank of Nigeria (CBN), saying that it is detrimental to businesses in the country.

Giving a keynote address at the opening session of a three-day summit organised by the Manufacturers Association of Nigeria (MAN) at the Presidential Villa, Abuja, on Tuesday, he said businesses in the country cannot cope with it.

Recall that the CBN’s Monetary Policy Committee (MPC) in its recent meeting increased the Monetary Policy Rate (MPR) to 26. 25%.

Dangote recalled the good old days when manufacturing thrived in the country, stressing the importance of encouraging the sector to reduce import dependence.

He said: “But as all of us can testify, our manufacturing sector has declined over the years, and has largely failed to provide the jobs it was expected to create for our teaming youths. It has also increasingly lost the strong linkages it once had with our agricultural and mining sectors which, if it had continued would have resulted in increasing food security and energy self-sufficiency.

“We may all recall thriving manufacturing concerns across the country like Steyr in Bauchi, Leyland in Ibadan, Anamco in Enugu, Fiat in Kano, Volkswagen in Lagos, Peugeot in Kaduna, Osogbo, Delta, Jos & Katsina steel mills, Jebba paper mill, etc.

“These and many more have since joined the graveyard of dead manufacturing concerns. Clearly, therefore there is an urgent and imperative need for us to re-think our manufacturing.”

Noting that; “import dependence is equivalent to importing poverty and exporting jobs,” he highlighted the necessity of reliable power supply and affordable financing for industrial growth.
Dangote called for protective measures for local industries, asserting that “there is no industrialisation without protection.”

The business mogul advocated a circular economy model, where economic activities remain within the country, benefiting all sectors of society.

He affirmed that industrialisation is “an inescapable road to sustainable and inclusive economic growth and human development.”

In his address at the occasion, Vice President Kashim Shettima said that the federal government is working with MAN to come up with an actionable roadmap and policy framework that would refurbish the nation’s manufacturing sector. He assured that if presented, the roadmap and policy framework would be speedily implemented to effect the needed changes that will revamp the sector.

The vice president regretted that the sector, which has a crucial role to play in building a nation driven by production and abundance, had endured a series of setbacks over the past decades.

He stated: “Distinguished ladies and gentlemen, I implore us all to leverage this summit to develop an actionable roadmap and policy framework, ready for immediate implementation, to create the changes we want in the manufacturing sector. I assure you that we shall always maintain an open-door policy to accommodate your needs and expectations.”

The vice president also called for the prioritisation of local content and promotion of made-in-Nigeria products, noting that Executive Order 003 which makes the patronage of locally manufactured products mandatory is still in effect.

“Let us be reminded that we cannot achieve significant progress in our drive for industrialisation unless we deliberately promote the production of capital goods. We must be focused on expanding our production base, prioritising local content, and promoting made-in-Nigeria products.

“I want to assure you that Executive Order No 003 – Support for Local Content in Public Procurement by the Federal Government, which mandates the patronage of locally manufactured products is still in effect.

“The relevant government Ministries, Departments, and Agencies (MDAs) are mandated to fully comply with the order.”

Shettima observed that as a country in Africa, “a continent that has languished at the bottom of the global value chain, with its share of global manufacturing at less than two percent,” Nigeria has no better option than to support its indigenous firms to produce locally and increase their capabilities.

The summit, according to him, offered the opportunity to re-evaluate the challenges confronting the sector and proffer solutions that would resolve them, even as he noted that a competitive manufacturing sector would reduce the inequities in the nation’s economy as well as overdependence on imports.

He further said: “Our proposal to minimize the economic imbalances in the nation is based on strengthening the production base of our economy, particularly in manufacturing.

“Most of our setbacks as a nation, as each of you knows, are due to over-dependence on imports for even our basic necessities. That is why we need you to address the various challenges facing the sector and ensure we have a competitive manufacturing sector.”

Shettima expressed satisfaction with what he saw during a tour of the exhibition, saying he is convinced more than ever of Nigeria’s industrial capabilities, creativity, and innovation.

Stressing the role of manufacturing in driving the nation’s wealth, job creation, living standards, and revenue generation, the Vice President said it explains why President Bola Ahmed Tinubu is focused on accelerating infrastructure projects, including roads, ports, and energy supply.

“It is essential to expedite the delivery of infrastructure projects that will enable the sector to leap forward and thrive. This is why His Excellency President Bola Ahmed Tinubu’s focus on roads, ports, and energy supply is strategic.”

The vice president identified five pillars of the summit, which he said are a clear roadmap for stimulating the manufacturing sector, pointing out that it is imperative to enact meaningful change and develop industries by addressing critical issues under each of these pillars.

He listed them to include upscaling productivity and competitiveness, energy security and infrastructure development, improving the macroeconomic environment and ease of doing business, promoting Made-in-Nigeria products and local content development, and leveraging regional and continental trade for export development.

Earlier, President of MAN, Otunba Francis Meshioye, thanked participants for honouring the invitation after several postponements, just as he also expressed gratitude to President Tinubu, for the unique opportunity and his magnanimity to host the Summit in the seat of power.

He said since the association opened communication with the office of the Vice President, they have been receiving tremendous support and collaboration from the Presidency.

He said the summit was organised to interrogate the evidence behind the constraints demeaning the performances of the industrial sector and to think and agree with the government on what to do to address them.

“The ultimate goal of the meeting is to reposition the sector on the path of accelerated growth, enhance its competitiveness, and reap its multiplier effect on the economy and the wellbeing of the citizenry.

Highlighting the problems diminishing growth in the sector, he stated that “the prevailing microeconomic environment places severe strains on the manufacturing sector,” adding that “this is adversely affecting jobs and people’s livelihoods of the citizens.”

Also, former Minister of Finance, Olusegun Aganga, urged the government to declare manufacturing a national priority sector.

He pointed out that the mere possession of natural resources does not guarantee national wealth. “What makes a country rich is what it does with its resources,” Aganga said, calling for a shift from peasant farming to commercial agriculture and from artisanal mining to attracting major miners.

Aganga also recommended eliminating excessive customs duties, levies, and overlapping regulatory mandates to boost the manufacturing sector.

He said: “We also need to eliminate excessive custom duties, levies, regulars, and multiple regulators with overlapping mandates.”