The federal government has announced a new industrial policy aimed at revitalising inactive firms, strengthening local production, and repositioning the country as a competitive industrial powerhouse.
The framework was revealed by John Owan Enoh, Minister of State for Industry, during a recent meeting with members of the Nigerian Guild of Editors.
He stated that industrialisation is critical to Nigeria’s economic development, emphasising that while trade and investment are still crucial, long-term success is dependent on productive sectors that can compete worldwide.
The concept closely aligns with President Bola Tinubu’s ‘Renewed Hope’ program, emphasising local content, import substitution, and industrial self-sufficiency.
Enoh revealed that he recently visited numerous idle firms that were formerly thriving to examine operational issues and identify paths for their recovery under the new framework.
Analysts see the project as a significant change from prior approaches, emphasising its planned execution strategy and accountability systems.
According to Ayo Omotayo, director general of the Nigerian Institute for Policy and Strategic Studies, previous policies failed due to poor execution.
He stated that the new framework includes a precise implementation matrix with specific objectives, deadlines, actors, deliverables, and measurable results.
The framework’s key features include implementing the ‘Nigeria First’ policy to encourage the purchase of locally produced goods, minimising reliance on imported raw materials, and boosting value addition in essential industries.
The framework suggests yearly industrial development investment of 3 to 5 percent of GDP, recapitalising the Bank of Industry to N3 trillion, and expanding sector-specific intervention funds to the similar amount.
Additional strategies include aligning tax systems, providing incentives and waivers, improving access to long-term, low-interest financing for micro, small, and medium-sized firms, and establishing industrial clusters with common infrastructure and energy facilities.
The measures are intended to reduce manufacturing costs, increase competitiveness, and attract new investment.
Speaking at the ceremony, John Uwajumogu, special assistant to the president on industry, commerce, and investment, stated that the strategy is intended to foster exponential growth to match Nigeria’s fast growing population.
He stated that meeting national development goals requires double-digit growth rates. An industrial revolution working group has been formed to coordinate stakeholders and assure successful implementation.
Energy insecurity, finance limits, bureaucracy, skills deficits, and low demand for local products were recognised as ongoing problems by engagement participants.
The program is aimed to stimulate joint ventures, attract foreign direct investment (FDI), and foster innovation via knowledge transfer, ensuring Nigeria’s industrial base is internationally competitive.
SOURCE: TheCable
