Experts have urged manufacturers, industrialists and Small and Medium Enterprises (SMEs) to chart a new path of production through locally sourced alternatives that will cover the soaring cost of import substitutions.
On his part, the managing director of GB Foods Limited, Vincent Egbe highlighted the precarious position of Nigerian manufacturers in the current economic climate.
He painted a sobering picture of the macroeconomic challenges; skyrocketing inflation, volatile exchange rates, and punitive fiscal policies; that have conspired to threaten the very existence of many businesses.
He said this was not the best of times for industrialists in Nigeria even as he remarked the accentuating position of inflation, rigid production as manufacturers and SMEs struggle to navigate this turbulent period.
He urged manufacturers to remain resilient despite these daunting circumstances while emphasising the importance of innovation and a long-term vision rooted in a deep belief in Nigeria’s domestic economy.
One of the most pressing issues Egbe highlighted was the critical need to find local substitutes for imported raw materials. As the cost of imports soars, he said, businesses must pivot towards locally sourced alternatives that meet high standards of quality.
This approach not only mitigates the financial strain of imports but also leverages the devaluation of the naira to create export opportunities, making it more cost-effective to produce in Nigeria and sell to other West African markets, he stated.
Egbe also addressed the growing talent deficit, which he described as a significant threat to productivity. As Nigerian companies increasingly compete with foreign nations for skilled workers, he said, the country faces a brain drain that hampers its ability to execute critical projects.
He also stressed the importance of backward integration, where manufacturers gradually localise their raw material sourcing in addition to their production processes. This, he argued, would require close collaboration with multiple stakeholders to ensure a steady supply of high-quality local inputs.
Also speaking, president of the Manufacturers Association of Nigeria (MAN), Francis Meshioye reinforced these sentiments, identifying fiscal policy, infrastructure development, and competitiveness as the cornerstone for the sector’s survival.
He called on manufacturers to remain vigilant for opportunities amidst the challenges, promising that MAN’s leadership would continue to engage with the government to seek solutions to the industry’s pressing issues.
The chairman of MAN’s Ikeja branch, Robert Ugbaja, also weighed in, expressing gratitude for the support of the Lagos State government.
Ugbaja noted that, in the face of daunting economic challenges, the industry must come together to turn adversity into opportunity, ensuring that it remains a vital engine of Nigeria’s economic future.
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