The Nigeria Employers’ Consultative Association (NECA) has expressed concerns regarding the Federal Government’s “Buy Made in Nigeria Policy,” arguing that it contradicts the principles of the African Continental Free Trade Agreement (AfCFTA) to which Nigeria is a signatory. This policy, championed by President Bola Tinubu under the “Renewed Hope Nigeria First” initiative, mandates federal ministries, departments, and agencies to prioritize Nigerian goods and services in public procurement. NECA’s Director-General, Adewale Oyerinde, argues that this policy not only violates AfCFTA protocols, which encourage intra-African trade, but also jeopardizes consumer purchasing power by potentially limiting access to more affordable imported goods. He illustrates this point with a hypothetical comparison of locally produced chocolates versus imported ones, highlighting the likelihood of consumers opting for the cheaper option, even if it’s imported. This, he argues, underscores the need to focus on enhancing the competitiveness of Nigerian products rather than simply prioritizing them through policy mandates.
Oyerinde emphasizes the importance of addressing the underlying factors that contribute to higher production costs in Nigeria. He points to infrastructural deficiencies, particularly in power supply, and regulatory challenges as key obstacles hindering the competitiveness of local businesses. Without tackling these fundamental issues, he contends that the cost of locally produced goods will remain high, forcing consumers to gravitate towards cheaper imports, thus rendering the “Buy Made in Nigeria” policy ineffective. Oyerinde advocates for a holistic approach where policy reforms are aligned to create a conducive environment for businesses to thrive, thereby naturally promoting the consumption of locally manufactured goods. He stresses the need for a synergy between various government policies, irrespective of the driving ministry or agency, to ensure they collectively benefit the private sector and contribute to overall economic growth.
NECA’s concerns extend beyond the immediate impact on consumer choices and AfCFTA compliance. Oyerinde highlights the broader implications for the Nigerian economy, arguing that the policy’s focus on prioritizing local goods without addressing the underlying challenges of production costs could stifle competition and innovation. By potentially shielding local industries from external competition, the policy might inadvertently create a breeding ground for inefficiency and hinder the long-term growth and development of the Nigerian manufacturing sector. This, in turn, could have negative repercussions for the country’s overall economic performance and its ability to compete effectively in the global market.
To address these concerns, NECA calls for greater synergy and alignment between government reforms, emphasizing the need for a cohesive approach that considers fiscal, trade, and regulatory policies. This integrated approach should aim to create a conducive environment for sustainable enterprise development and inclusive growth. Oyerinde underscores the importance of private sector engagement in this process, advocating for a platform for dialogue and consensus-building between the government and businesses. He believes that the private sector’s input is crucial for ensuring that reforms are effective and complement each other, ultimately contributing to the desired economic outcomes.
In preparation for the upcoming 2025 NECA Annual Nigeria Employers Summit, themed “Enabling sustainable enterprise in a transitioning economy: Aligning fiscal, trade, and regulatory reforms for inclusive development,” NECA aims to foster a deeper understanding of the government’s reform agenda. The summit seeks to create a platform for open dialogue and consensus building around these reforms, particularly in the areas of trade, investment, and industry, in the broader context of fiscal and monetary policies. The goal is to ensure that the reforms complement each other, fostering private sector confidence and facilitating effective implementation.
NECA’s position emphasizes the importance of a nuanced approach to promoting local industries. While acknowledging the merits of supporting domestic production, the organization cautions against policies that might inadvertently create unintended consequences. They argue for a comprehensive strategy that addresses the root causes of high production costs, fosters a competitive business environment, and ensures alignment between various government reforms. This, they believe, is the key to achieving sustainable economic growth and enhancing the competitiveness of Nigerian products in both domestic and international markets. The upcoming summit is seen as a crucial step towards achieving this objective, providing a platform for constructive dialogue and collaboration between the government and the private sector.
