{"id":65628,"date":"2022-10-18T17:54:43","date_gmt":"2022-10-18T16:54:43","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=65628"},"modified":"2022-10-18T17:54:43","modified_gmt":"2022-10-18T16:54:43","slug":"dangote-priority-investments-in-infrastructure-core-industries-will-boost-nigerias-economy","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/dangote-priority-investments-in-infrastructure-core-industries-will-boost-nigerias-economy\/","title":{"rendered":"Dangote: Priority Investments In Infrastructure, Core Industries Will Boost Nigeria’s Economy"},"content":{"rendered":"

…Says a \u2018newly industrialized Nigeria within 10 years is possible<\/p>\n

Business magnate and President of Dangote Group, Aliko Dangote has identified priority investments in infrastructure and core industries among other recommendations, as vital panaceas to boost Nigeria’s economy to its desired level among contemporary nations and in the world overall.<\/p>\n

Against the background of the declining fortune of the manufacturing sector, the Africa’s wealthiest man urged the Federal Government to employ strategic prioritize investments in infrastructure to reverse the trend and boost Nigeria’s economy to its desired level among contemporary nations and in the world over.<\/p>\n

\"\"In his address as Guest Speaker at the landmark 50th Annual General Meeting of the Manufacturers Association of Nigeria (MAN) and the 2nd\u00a0Adeola Odutola Lecture held yesterday in Lagos, Dangote who expressed optimism also noted that with the collective effort of all stakeholders, it is feasible to move Nigeria from \u201cdeveloping nation\u201d to \u201cnewly industrialized nation\u201d.<\/p>\n

Dangote said it is imperative that the familiar challenges limiting the pace of industrialisation are frontally addressed while setting a clear-cut agenda for the next 10 years.<\/p>\n

He identified priority investments in infrastructure and core industries among other recommendations, as vital panaceas to boost Nigeria’s economy to its desired level among contemporary nations and in the world overall.<\/p>\n

During the AGM, themed: \u201cAn Agenda for Nigeria\u2019s Industrialization for the Next Decade\u201d, where a Blueprint for the Accelerated Development of Manufacturing in Nigeria 2.0 was unveiled, the foremost entrepreneur advocated jail terms for dealers in foreign textile materials in order to discourage imports and boost local production in the textile industry. For legislative backup, he also sought the enactment of a law prohibiting the sale of imported fabrics in the country.<\/p>\n

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Dangote identified various measures which needed to be put in place to allow Nigeria speed up its industrialization process and development growth. These measures included investment in infrastructure; creation of business-enabling Policy Framework; development of core industries; macroeconomic stability;\u00a0facilitation of sectoral linkages and sustaining of the federal government\u2019s recent efforts at ensuring\u00a0security of lives, properties and investments across the nation.<\/p>\n

The business titan examined the performance of the industrial sector in Nigeria; identified the nexus between industrialization and economic development with Nigeria and China as case study; analyzed the manufacturing sector in the country with focus on its growth trajectory, current status and challenges, and set an agenda for the next ten years with an implementation roadmap.<\/p>\n

According to him, \u201cthe experience in various parts of the world has shown that industrialization drives economic growth & development, which improves living standards as evident by the high output and per capita income in industrialized countries.<\/p>\n

\u201cThe rate of industrialization in Nigeria has been slow as evidenced by the low contribution of manufacturing to GDP, poor capacity utilization and constrained export of manufactured products within and outside the continent. For instance, Nigeria\u2019s share of world output of 0.41%, ranked 29th in the world which is unimpressive, considering its size and resource endowments. It ranks poorly, when compared with\u00a0India at (3.1%),\u00a0South Korea (3.0%) and China (28.7%).<\/p>\n

\u201cNigeria\u2019s industrialization process has been greatly challenged by structural and institutional constraints, particularly funding. These factors have over the years cumulatively contributed to its disappointing performance. For instance, in the last decade, average share of manufacturing value added to GDP in countries like China and Malaysia stood at 41% and 38% respectively; compared to 25% in Nigeria.<\/p>\n

\u201cIn terms of capacity utilization, a major performance indicator which reflects the ability of manufacturing companies to meet rising demand without increasing cost, Nigeria achieved a rate of 55% compared to 76% and 78% in China and South Africa respectively. The country\u2019s dwindling industrial performance has significant socio-economic implications, as poverty and unemployment continue to rise.<\/p>\n

\u201cFrom 1960 to 2003, the development trajectory of China by far outpaced that of Nigeria within the same period even though Nigeria began on a seemingly better footing. It is therefore important to track back to where Nigeria \u201cdropped the ball\u201d with a view to repositioning the country to the path of growth, development, and social upliftment.<\/p>\n

\u201cBased on the comparative analysis of Nigeria and China, one can safely make the following deductions (i) the numerical strength of a nation (population) can indeed be translated into economic wealth (ii) steady growth in manufacturing output is possible when the operating environment is conducive; (iii) no nation can easily transit from\u00a0 \u201cdeveloping\u201d to \u201cnewly industrialized\u201d without a vibrant manufacturing sector; (iv) effective implementation of long term plans backed with policy consistency will promote enduring economic growth and development\u201d, the industrialist added.<\/p>\n

According to Dangote, \u201cNigeria\u2019s manufacturing sector is dominated by light manufacturing with only a few firms operating in the heavy segment of the sector. There are several factors that need to be in place to accelerate the growth of the manufacturing sector in Nigeria. These include: security and rule of law, industry-oriented government policy; adequate infrastructure; industry-oriented Research & Development (R&D); a well-developed SME sector; building of human capacity, and embrace of technology to improve efficiency through automation of manufacturing processes.<\/p>\n

On current status of the manufacturing sector, Dangote noted that manufacturing was singled out in the Nigerian Industrial Revolution Plan (NIRP) as the driver of industrialisation and economic growth.<\/p>\n

\u201cThe contribution of manufacturing to Real GDP in Nigeria contrasts with what was obtained in countries like China (27.16% in 2019); Germany (19.11%); Japan (20.74%) and South Africa (13.53%). To drive industrialization and sustained economic growth in Nigeria, it is important that deliberate policies that are manufacturing-specific should be designed to support manufacturing activities and address the perennial challenges of the sector. It is important to note that the current government policies, if fully implemented, are good enough to address most of the challenges we are now facing,\u201d he said.<\/p>\n

Among manufacturing challenges, he identified acute shortage of forex; dearth of long-term funds; limited infrastructure; policy inconsistency\/implementation\/ enforcement; over-regulation; multiple and high taxes for the industries (the manufacturing sector is beset with over thirty statutory taxes, levies, fees, etc. charged at multiple tiers of government), and insecurity.<\/p>\n

According to Dangote, \u201cIn consideration of the afore-mentioned challenges, there is an urgent need for a shift in policy approach and strategy to reposition the manufacturing sector for growth over the next ten years. It is imperative that the familiar challenges limiting the pace of industrialization are frontally addressed while setting a clear-cut agenda for the next 10 years.\u201d<\/p>

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While setting an agenda for the next 10 years, Dangote said, \u201cTo achieve industrialization goals, it is necessary for a nation to formulate plans and policies that will enhance and sustain industrial development. Sustainable industrial development\u00a0involves establishment of a conducive environment to encourage investment and ensure efficient usage of resources to increase productivity and growth of the nation.<\/p>\n

\u201cNigeria needs to henceforth intensify efforts at promoting industrialization with specific focus on the attainment of the following targets in the next 10 years: 15% manufacturing\u00a0sector growth, 20% manufacturing contribution to GDP, 15% growth in export of manufactured products, 10% increase in the share of manufacturing to total export merchandise, stronger inter-industry linkage between SMEs and large corporations, improved manufacturing contribution to Government tax revenue and 20% increase in manufacturing employment\u201d, he added.<\/p>\n

In his conclusion, Dangote noted that, \u201cThe drive to transform Nigerian into an industrialized nation has been a consistent goal of successive governments since independence. It is therefore, imperative that we focus on sectors with great potential for inclusive growth. Sustainability must be central to our industrial development agenda.<\/p>\n

\u201cThere is also the need for government (at all tiers) to ensure that they consult widely with relevant stakeholders when taking far reaching decisions on key sectors of the economy. This will make it much easier for manufacturers to make long-term business plans. In addition, policies that have been \u201ctried- and- tested\u201d should be backed with an Act of parliament to give them legal backing and make them less susceptible to arbitrary changes by successive governments.<\/p>\n

\u201cIndustrialization, driven by manufacturing, has the capacity to facilitate enduring economic growth. The transition mechanism entails the availability of required resources, adoption of appropriate technology, provision of favourable operating environment, human capital development, stable macroeconomic environment and adequate infrastructure. With the collective effort of all stakeholders, it is feasible to move Nigeria from \u201cdeveloping nation\u201d to \u201cnewly industrialized nation\u201d status within the next 10 years\u201d, he added.<\/p>\n

 <\/p>\n

Pix 1<\/p>\n

Photo Caption: From Left –Aliko Dangote, President\/CE, Dangote Industries Limited, (Guest lecturer) receiving an award from Engr. Mansur Ahmed, President, Manufacturers Association of Nigeria (MAN) during 50th\u00a0Annual General Meeting (AGM) of Manufacturers Association of Nigeria and 2nd\u00a0Adeola Odutola Lecture and Presidential Luncheon in Lagos on Tuesday, October 18, 2022<\/p>\n

Pix 2<\/p>\n

Photo Caption: From Left –Engr. Mansur Ahmed, President, Manufacturers Association of Nigeria (MAN); Aliko Dangote, President\/CE, Dangote Industries Limited (Guest lecturer); Adewale Bakare, Director, Industrial Development Directorate, representing the Minister of Industry, Trade and Investment and Ousseine Diallo, Secreterie Executif de la, FOPAO, C\u00f4te d’Ivoire \u00a0during 50th\u00a0Annual General Meeting (AGM) of Manufacturers Association of Nigeria and 2nd\u00a0Adeola Odutola Lecture and Presidential Luncheon in Lagos on Tuesday, October 18, 2022<\/p>\n

Pix 3<\/p>\n

Photo Caption: From Left–<\/p>\n

Ambassador Hassan Adamu, (Wakili Adamawa), former President of Manufacturers Association of Nigeria; Senator Walid Jibrin, a guest; Engr. Mansur Ahmed, President, Manufacturers Association of Nigeria (MAN); Aliko Dangote, President\/CE, Dangote Industries Limited, (Guest lecturer); Adewale Bakare, Director, Industrial Development Directorate, representing the Minister of Industry, Trade and Investment during the presentation of the Blueprint for the Acceleration Development of Manufacturing in Nigeria 2.0)launched at the 50th\u00a0Annual General Meeting (AGM) of Manufacturers Association of Nigeria and 2nd\u00a0Adeola Odutola Lecture and Presidential Luncheon in Lagos on Tuesday, October 18, 2022<\/p>\n

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