The Federal government’s Economic Recovery and Growth [ERGP] Focus labs has set a target of $9.24 billiion revenue inflows for private sector investments in manufacturing and processing industries in Nigeria expected to create over 300,000 jobs across the six geo-political zones by 2020.
This, in addition, will be backed by over $400million government’s investment to be injected in six entry points of food, manufacturing, textiles, minerals, petrochemicals, manufacturing and the construction of new industrial parks.
A financial expert Dr. Nosa James Igbinadolo gave the details in an interview with The Guardian at an investment forum, Tuesday, in Abuja.
Igbinadolo stated that the abundant availability of raw materials, labour, land, market access and strategic location in the gulf of guinea makes Nigeria an ideal manufacturing hub.
As stated by him, despite being Africa’s most populous country, the contribution of the manufacturing sector to GDP is lower than Morocco, Kenya, Egypt, Mauritius and South Africa, a situation he describes as unfortunate.
He stated, ‘’Growth in the sector is crucial to achieving a diversified, sustainable and inclusive economy, other than Agriculture, it is the sector that has the most capacity to create massive job growth as it currently employs only 12 percent of labour force’’.
He explained that the influence of policy on the manufacturing and processing sectors is particularly acute adding, ‘’The unreliable supply of FOREX, high cost of accessing finance and regulated pricing has created low policy perception for investors’’.
He stated that in view of the above the Federal Ministry of Industry, Trade and Investment as well as the Ministry of agriculture will jointly execute projects developed at the Labs to plug the gaps between raw material producers and manufacturers,.
‘’Towards strengthening collaboration between manufacturers and raw material producers, a petrochemical project conceived at the labs has been granted gas allocation by the Ministry of Petroleum Resources, a gas cylinder manufacturing factory was also linked with a 20 Megawatt power plant which will form part of a newly established industrial park’’..
He noted that the country’s growth is existentially tied to the growth of the private sector stressing ‘’enhancing collaboration between various actors in the Manufacturing value chain presents a giant opportunity for significant growth for the sector and the nation’s economy’’.