Nigeria Targets N5trn Annually From Manufacturing Sector

Posted by African Examiner Latest Headlines, News Wednesday, February 12th, 2014

By Eric Ojo

The Federal Government has said that the primary goal of the Nigeria Industrial Revolution Plan (NIRP) is boost the annual revenue earnings of the Nigerian manufacturers by up to N5trillion per annum.

Nigeria’s President Goodluck Jonathan

The NIRP also seeks to achieve this by increasing the contribution of the manufacturing sector to Gross Domestic Product (GDP) from the present four per cent to more 10 per cent over the next five years.

In addition, the Plan equally aimed at addressing all the major physical constraints towards industrialization, improve the nation’s investment climate and promote the patronage of made in Nigeria products.

President Goodluck Jonathan who disclosed this while launching the NIRP and the National Enterprise Development Programme (NEDEP), on Tuesday in Abuja, said the inauguration of the Plan, clearly set the stage for a new era of industrial, Micro, Small and Medium Enterprises development in Nigeria.

President Jonathan said the NIRP as the most ambitious and comprehensive road map that would transform the nation’s industrial landscape, boost skills development, enhance job creation and conserve foreign exchange.

The NIRP, according to him, is the flagship industrialisation programme ever embarked upon by the country, adding that it will fast-track industrialisation, accelerate inclusive economic growth, job creation, transform Nigeria’s business environment and stop the drain on the nation’s foreign reserves caused by importing what Nigeria can produce in locally.

“The NIRP is the most ambitious and comprehensive industrialisation programme because it is based on the areas where Nigeria has competitive and comparative advantage such as agriculture and agro-products, metals and solid minerals, oil and gas, construction and light manufacturing services. It has identified those sectors where Nigeria can be number one in Africa and top 10 globally”, he said.

He added that the NIRP will also address the physical constraints that have consistently inhibited the growth of manufacturing by building industrial infrastructure, prioritise power for industrial use, reduce borrowing cost and mobilise funds for the real sector.

He further explained the Plan will help to build our industrial skills, improve our investment climate, raise our product standards, link innovation to industry and ensure local patronage of made in Nigeria goods.

The President also noted that the NEDEP would help reposition the MSME sector as the major driver of job creation and inclusive economic growth, adding that the Federal Government would continue to promote the patronage of made-in-Nigeria products through the implementation of its local patronage policies and programmes.

“The NEDEP is designed to develop and grow the Micro, Small and Medium Enterprises because all over the world, the MSMEs are primary drivers of employment. With the successful implementation of the NEDEP, Nigeria will attain her dream of inclusive economic growth.

“A survey conducted by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the National Bureau of Statistics

(NBS) in 2010 showed that we have about 17 million MSMEs, employing over 32 million people. If each of these 17 million MSMEs employ additional one person, we will create additional 17 million jobs thereby reducing employment in our country.”

Continuing President Jonathan said: “The NIRP and NEDEP will give additional impetus to our Transformation Agenda by ensuring value addition, enterprise development and industrialisation. On our own part, the Federal Government will continue to support local manufacturers by buying vehicles that are made in Nigeria. And as long those vehicles are produced in this country, the Federal Government will buy them. So we also encourage the state governments to support the patronage of made in Nigeria products in their states.”

Earlier inhis welcome address, the Minister of Industry, Trade and Investment, Mr. Olusegun Aganga, said that the holistic and integrated nature of the NIPR and NEDEP had provided synergy and necessary linkages with other development plans of various Ministries, Departments and Agencies (MDAs) of the government and the private sector, adding that the ministry would partner all the stakeholders to ensure the successful implementation of the programmes.

“The NIRP and NEDEP are both holistic and integrated. This means that they are joined at the waist with other MDAs. The NIRP and NEDEP adopt inclusive structures which bring in other government agencies and the private sector to ensure adequate policy synergy”, he further explained.