In the ongoing push to diversify Nigeria’s economy away from its heavy reliance on oil, the Manufacturers Association of Nigeria (MAN) has made a compelling case for prioritizing non-oil exports as a fundamental part of economic growth strategies. This advocacy was articulated at the 36th Annual General Meeting of the MAN’s Anambra/Ebonyi/Enugu chapter held in Enugu. Ada Chukwudozie, the association’s chairwoman, emphasized that a dedicated investment in the non-oil sector is crucial for enhancing foreign exchange earnings, a shift necessary for rescuing and revitalizing the Nigerian economy. Her comments come in a context marked by the global economy’s rapid transformation, influenced by factors such as the COVID-19 pandemic, geopolitical tensions, climate change, and significant technological evolution.
Chukwudozie further elaborated on the urgency of adapting to these dynamic changes. She indicated that Nigeria’s focus should shift toward non-oil exports to spur economic growth and positively influence the nation’s GDP trajectory. By diversifying the economy and reducing its dependency on oil, she believes Nigeria can attain greater economic stability and growth. The current economic landscape depicts Nigeria heavily leaning on crude oil exports for foreign exchange, but due to dwindling oil production—a consequence of insecurity and various challenging factors—there has been a notable strain on foreign reserves, which has been exacerbated by trade deficits. These compounding challenges have resulted in high inflation rates and the devaluation of the national currency.
Chukwudozie described the prevailing business environment as volatile, uncertain, complex, and ambiguous (VUCA), highlighting how navigating geopolitical tensions, technological disruptions, and shifting customer preferences has become increasingly demanding. With the recent deregulation of the energy sector and the looming adjustments in monetary policies to control inflation—reflected in the high monetary policy rate (MPR)—the need for a shift toward non-oil initiatives has become more evident. She urged stakeholders in the manufacturing sector to embrace agility, resilience, and innovative thinking, contending that firms must be open to challenging existing assumptions, experimenting with novel ideas, and investing in emerging technologies.
In addressing the gathering, Hassan Imam, the managing director of Keystone Bank, echoed Chukwudozie’s sentiments, advocating for a collective approach involving the government, manufacturers, and financial institutions to improve the manufacturing landscape in Nigeria. He suggested that through the introduction of targeted government policies alongside enhanced access to finance and infrastructural improvements, a conducive environment for manufacturing growth could be achieved. This collaboration is vital for addressing the systemic issues that currently impede the sector’s development.
Additionally, Chief Martin Agbaso, a prominent businessman present at the event, contributed to the dialogue by emphasizing the importance of value addition in the manufacturing process. He urged manufacturers to focus on exporting finished products instead of merely raw materials, highlighting that this shift would not only enhance Nigeria’s economic profile but also maximize profits and further stimulate local industry. This perspective is crucial in light of the global trend toward higher-value exports, which can lead to sustainable economic development.
In conclusion, the call for Nigeria to prioritize non-oil exports resonates deeply with the current economic realities facing the nation. As the country grapples with the challenges posed by global economic shifts, there is an urgent need to adapt and rethink strategies centered around diversifying away from oil dependency. By investing in the non-oil sector, fostering collaboration among various stakeholders, and focusing on quality exports, Nigeria can set the stage for robust economic growth and a more resilient future. A commitment to innovation, value addition, and strategic partnerships may serve as the cornerstone for revamping the Nigerian economy and aligning it with global standards.
