Streamlining Export Processes for Enhanced Global Competitiveness: A Case for Digitization and Policy Reform in Nigeria
The British American Tobacco (BAT) Nigeria has strongly advocated for the modernization of Nigeria’s export procedures through the adoption of digital technologies. This call for digitization aims to enhance efficiency, foster greater transparency, and bolster the country’s competitiveness in the global marketplace. BAT Nigeria’s position underscores the urgent need for comprehensive policy reforms to stimulate manufacturing exports and ensure Nigeria’s continued relevance in the evolving landscape of international trade. The company emphasizes the importance of adapting to rapid changes in global trade dynamics, including increased digital adoption, supply chain disruptions, and the emergence of stringent climate regulations. Failure to adapt to these shifts risks leaving Nigeria behind, highlighting the need for agile policies that spur growth, eliminate systemic bottlenecks, and unlock the full potential of the manufacturing sector.
BAT Nigeria’s own experience serves as a compelling example of the transformative power of strategic investments coupled with a conducive business environment. In 2003, the company invested over $185 million to establish a state-of-the-art manufacturing facility in Ibadan, designed as a regional hub for West and Central Africa. This investment has yielded significant results, with the factory now exporting to 13 countries, including the United States, generating substantial foreign exchange earnings and creating thousands of jobs across various sectors, including logistics, warehousing, packaging, and port operations. This success story demonstrates the potential for manufacturing to drive economic growth and job creation in Nigeria. However, despite this progress, challenges persist, including high energy costs, port congestion, and the overall high cost of doing business in the country. Addressing these challenges is crucial to maximizing Nigeria’s production capacity and diversifying its export base.
The company acknowledges the commendable efforts of the Nigerian government in areas such as infrastructure development and regulatory reforms. However, it emphasizes the need for targeted policy reforms to address persistent systemic barriers. Streamlining export processes through digitization, investing in crucial energy and transport infrastructure, reforming trade finance mechanisms for small and medium-sized enterprises (SMEs), and promoting the development of industrial clusters are identified as critical steps towards unlocking Nigeria’s full manufacturing potential.
BAT Nigeria further urges policymakers to embrace green and digital standards to ensure the country’s global competitiveness. This involves adopting environmentally sustainable practices and leveraging digital technologies to enhance efficiency and productivity. Maintaining policy coherence, agility, and inclusivity is also essential, requiring continuous monitoring of global trade policy shifts to ensure Nigeria remains aligned with international best practices. A supportive policy environment should be dynamic and responsive to the evolving global landscape. Decisive action is needed to secure Nigeria’s position in future manufacturing export value chains.
The Manufacturers Association of Nigeria (MAN) Think Tank Session, where BAT Nigeria voiced these concerns, brought together leading experts, industry leaders, and policymakers to develop a strategic advocacy roadmap aimed at enhancing Nigeria’s manufacturing performance and unlocking its vast industrial potential. The session provided a platform for constructive dialogue and collaboration, seeking to identify actionable strategies to boost the manufacturing sector’s contribution to the Nigerian economy.
BAT Nigeria reiterated its commitment to supporting policies and initiatives that strengthen the manufacturing sector, drive non-oil export growth, and contribute to a more prosperous future for all Nigerians. The company’s advocacy for digitization and policy reforms reflects a broader recognition of the need to modernize Nigeria’s export processes and create a more conducive environment for manufacturing businesses to thrive. By proactively addressing the challenges faced by manufacturers, Nigeria can unlock its full economic potential and position itself as a key player in the global manufacturing landscape. This involves fostering a more competitive business environment, promoting innovation, and ensuring that the country’s policies and regulations are aligned with international best practices. Ultimately, the goal is to create a sustainable and inclusive growth model that benefits all Nigerians.
