Nigeria has recently intensified effort to reduce its reliance on imports and improve its global trade competitiveness.
Nigeria has recently intensified effort to reduce its reliance on imports and improve its global trade competitiveness.
However, a huge percent of industrial raw materials for manufacturing of products are still being imported into the country. Statistics from the Raw Materials Research and Development Council (RMRDC) shows that in 2016, the country spent N5.89 trillion on the importation of raw materials; thus, bringing the total sum spent on the importation of primary raw materials into the country in seven years to N19.5tn.
On the average, the country spent N2.79tn every year within this period.
In order to stem the tide, the current administration has the localization agenda as one of its priorities for the emergence of the manufacturing sector in the country.
In the 3 quarter of 2016, the Presidential Enabling Business Environment Council (PEBEC) was set up to look into the various ways of enhancing business operations in Nigeria and to empower citizens through employment in the areas of sourcing and processing of raw materials; to foster the overall growth of the economy and ensure that that nation becomes self-reliant.
For the manufacturing sector to experience potential growth going forward, it needs to focus its efforts on local production and company’s like Procter and Gamble are taking deliberate steps to support the Federal Governments economic development agenda. P&G currently manufactures its products close to consumers and this has aided technology transfer.
The company which is committed to the Nigerian economy, has invested over 500 million dollars in the country till date. These funds have been deployed into the construction of her two manufacturing plants, localization of manpower, and the growth of Micro Small Medium Enterprises (MSMEs) which is incorporated into the supply chain of the organization.
Just recently, the organization in partnership with the Federal Ministry of Industry, Trade & Investment and Manufacturers Association of Nigeria (MAN) convened suppliers in the manufacturing sector to chart a course that will develop the economy. The sustainable supply of raw materials in the right quantity and quality from within the country would lead to the creation of jobs, as well as the generation of wealth within the economy, and a source of revenue for the government.
Speaking on the objectives of the meetings; Temitope Iluyemi, Director of Government Relations and Public Policy for Procter & Gamble Sub Saharan Africa Operations said; “Backward integration is essential to the growth of the Nigerian economy and P&G’s aim is to encourage our global partners to do the same and thereby promote technology transfer.
We will work to pre-qualify local suppliers for materials used in the production of consumer packaged products and by extension, build capability of local manufacturers to compete effectively in regional value chains and further strengthen the diversification efforts of the Nigerian government.”
The Nigerian economy has tremendously benefited from the organization’s drive to be a Nigerian company of international standard as the organization has continually contributed positively to the society by using its expertise and products to solve social, environmental and economic problems.
The company’s continuous local investment is a testament to its commitment to support the Federal Government’s diversification efforts.
It is imperative for all sectors to intensify efforts towards enabling local entrepreneurship development and helping with the capabilities required to produce raw materials locally. This will go a long way in actualizing the country’s economic development agenda.
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