ABUJA- The Manufacturing Partnerships for African Development (mPAD) said on Tuesday that the manufacturing sector of the Nigerian economy had yet to tap into its potential.
The organisation stated this in a statement issued in Abuja on Tuesday by its Communications Manager, Annemarie Roodbol.
It quoted mPAD’s Programme Director, Ms Fotoula Fatouro, as saying that the sector was currently contributing 6.81 per cent to the new GDP, while its capacity utilisation stood at 48.2 per cent.
According to the statement, the recent rebasing of the Nigerian economy has put the spotlight on the country’s economy and, more so, its manufacturing sector.
It commended the Federal Government for the recent introduction of the Nigerian Industrial Revolution Plan with its ultimate goal to add about N5 trillion to annual manufacturing revenues in the next few years.
The statement said the sector still faced power problem, adding that manufacturers were currently spending about 40 per cent of their production cost on electricity.
It further said that the risk manufacturers had to live with “is the latent but potentially potent risk of a major policy reversal or change in government regulation’’.
“The good news is that government has seen the need for manufacturing to take a more prominent stage in the scheme of national development and making incentives available to encourage investment in the sector.
“As a matter of need, all manufacturers must have an in-house generating plant to be in a position to manufacture,” it said.
According to the statement, one of the vision for the industry is to ensure that Nigeria becomes a manufacturer of not only consumer goods but also capital goods, as well as provide advice to potential investors.
The statement said mPAD would bring together Nigeria’s top manufacturers to discuss their vision for the sector and also look at practical solutions to challenges in the sector..
“The Nigerian Industrial Revolution and what it needs to grow is top of the agenda at the upcoming mPAD conference and trade expo in Lagos scheduled to hold between Nov. 18 and Nov. 19,” it said. (NAN)
