Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, said diversification of Nigeria’s economy and repositioning in value-added exports were some of the country’s biggest development ambitions.
Adebayo said this at the Manufacturers Association of Nigeria Export Group (MANEG) event with the theme: “Non-Oil Export Incentives in Nigeria: Effectiveness and Sustainability”, which held on Thursday in Lagos.
According to the minister, Nigeria, as a country moving beyond oil, is also working to move beyond the export of raw commodities and materials.
He said the country’s industrialisation depended largely on its citizens, with MANEG at the forefront of value-added exports.
“There is a quote I see on social media a lot and I am not sure about the accuracy of the numbers but the meaning behind it remains strong.
“A bar of iron costs 5 dollars; made into horseshoes, it’s worth is 12 dollars; made into needles, it’s worth is 3,500 dollars and made into balance springs for watches, it’s worth is 300,000 dollars,” he said.
Adebayo stated that the country now more than ever, needed to support exports, saying that historically, the biggest incentive for exporters had been the Export Expansion Grant (EEG).
He noted that the ministry understood the importance of paying the outstanding EEG commitments to exporters and had consistently championed the case.
He said the issue was currently being resolved at the National Assembly and that the 38 companies omitted from the previous list of EEG recipients submitted to the Debt Management Office now had the opportunity to receive payment.
“As a nation, this is the time to build a resilient and competitive manufacturing sector that will see us through the next 50 years.
“The face of Africa is changing; especially in light of the African Continental Free Trade Area (AfCFTA), one of the most important and strategic international economic agreements ever enacted.
“As the largest economy in Africa, Nigeria’s contribution to the AfCFTA is pivotal to its success.
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“In turn, that means the contribution of the companies here to inter-African exports is pivotal to Nigeria’s success under AfCFTA.
“Your success is Nigeria’s success, and the Federal Government is willing to give you the support that you need to win,” he said.
Outgoing MANEG Chairman, Chief Ede Dafinone, said exporters, since the pandemic practically struggled with reduced international demand, coupled with domestic economic challenges.
He noted that high exchange rates, high cost of energy, multiple levies and taxes, port congestion, smuggling of contraband goods, infrastructure deficiency and others had hindered manufacturing operations in the country.
“The actions and inactions of policy makers in the non-oil export sector of the economy would impact on the non-oil export incentives for Nigeria’s effectiveness and sustainability.
“It is time for collaborative efforts to address the fragility of the sector,” he said.
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