Nigeria Losing Jobs, Investments Over Underutilised Cable Manufacturing Capacity

Coleman Technical Industries Limited has warned that Nigeria is losing significant export opportunities, jobs and investment as local manufacturers are unable to fully utilise their production capacity due to unfavourable policies and structural challenges.

The managing director and chief executive officer of the company, Mr. George Onafowokan, raised the alarm while fielding questions from journalists after a media tour of Coleman’s factories in Sagamu, Ogun State, on Monday

Onafowokan said Coleman has invested heavily in high-voltage cables, fibre optics, copper processing and other manufacturing facilities, but most of the plants are operating far below installed capacity.

According to him, the company’s high-voltage cable facility, in which investment was made in 2014, is currently operating at less than 10 per cent capacity, while overall utilisation across its expanded facilities is about 20 per cent.

He said the fibre-optic facility, which has capacity to supply Nigeria and a substantial part of the African market, is not being utilised to its full potential despite huge investment.

“We have invested more than $60 million in our fibre-optic operations, with part of the investment supported through funding from the Bank of Industry, FCMB and InfraCredit,” Onafowokan disclosed.

He noted that Coleman, which is wholly indigenous, has remained committed to investing in Nigeria as a private business, not as a government-backed enterprise, and has continued to expand despite the operating environment.

Onafowokan said Nigeria has the potential to become a major exporter of cables and other industrial products if existing production capacity is properly utilised, stressing that running factories at higher capacity would create thousands of additional jobs, increase tax revenue and boost Nigeria’s export earnings.

“Stronger local manufacturing is critical to ensuring that Nigerian companies can take advantage of opportunities arising from major industrial projects and compete in regional and international markets,” he said.

He cited the use of Coleman cables on Seplat’s Yoyo offshore platform as evidence that Nigerian manufacturers have the technical capacity to meet specialised industrial requirements for complex projects.

He however said manufacturers need a more supportive policy environment to expand their participation in local and export markets, particularly in tariff reforms, local content enforcement and export incentives.

Onafowokan urged the federal government, particularly the Ministries of Finance and Industry, Trade and Investment, to be more deliberate in creating and supporting large-scale Nigerian businesses that can compete globally and drive economic growth.