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Nigerian manufacturers seek incentives to implement backward integration agenda

Due to the scarcity of raw materials which was caused by the unavailability of forex. Nigerian manufacturers move to resolve to substitute importation through local production, lack of access to raw materials may have driven many manufacturers into farming and value-chain activities outside their core competence,

According to the Manufacturers Association of Nigeria (MAN), dollarization of locally sourced raw materials needed for production has further increased the burden of many local producers as they have had to further invest in primary activities and increased infrastructural spending outside the core business.

To address import dependence in the country, MAN urged the Federal Government to incentivise backward integration activities while unveiling policies that will discourage export of raw goods that can be processed in the country, adding that government will witness a surge in production activities if incentives are unveiled and implemented for investors
Speaking during a courtesy visit of MAN and Clarion Events West Africa to The Guardian to seek partnership on the upcoming Nigeria manufacturing and equipment (NME) and raw materials (NIRAM) expo, MAN Director-General, Segun Ajayi-Kadir explained that while the industrialisation strategy of depending on imports for raw materials may be plausible, it has become imperative to look inwards for such materials in order for many operators to remain in business.

MAN boss added that many operators are now acquiring farms and getting involved in activities outside their natural pre-occupation, even as others seek partnerships with research institutes for seed solutions and technology that can aid their businesses.

Indeed, this year’s event is expected to attract over 3,700 visitors and exhibitors from multinationals, large and small medium industries (SMIs) and other manufacturing equipment distributors from over 120 leading local and international suppliers.

Indeed, the Nigeria manufacturing and equipment (NME) expo, scheduled to hold on the 14th to 16th of March, 2017 at Landmark event centre, Victoria Island, Lagos, is expected to drive the nation’s quest to achieve a virile industrialised economy while also providing a platform for small and medium enterprises (SMEs) to learn new processes on how to boost outputs, reduce costs, drive quality improvement and manufacture for new emerging markets across the globe.

He pointed out that the fair would be the most exciting thing to happen to the industrial sector in Nigeria in 2017, stressing that it would also provide opportunities for the large and medium size corporations to retool and get local sources of raw materials to boost production, reduce cost and time of procurement.

The Managing Director, Clarion Events West Africa, Dele Alimi, said over 4500 manufacturers and manufacturing equipment distributors expected to attend, evaluate and purchase latest manufacturing equipment, machine tools, technologies, spare parts and manufacturing raw materials will have opportunities to display their technologies to over 120 leading local and international suppliers.
He said the exhibition would make an even bigger impact on the Nigerian economy than the maiden edition which took place April last year.

Naija247news, Nigeria
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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