Revolutionizing Local Manufacturing: A Roadmap to Enhance Competitiveness and Sustainability
Ensuring the sustainable supply of basic and secondary raw materials, as well as fostering innovative strategies and cutting-edge technologies, has become a crucial aspect for the survival of the manufacturing sector. Recently, discussions on these vital issues took place at the Nigerian Manufacturing and Equipment Expo (NME) and the Nigerian Raw Materials Expo (NIRAM) in Lagos. The events delved into the challenges facing the manufacturing ecosystem and potential solutions to enhance local competitiveness.
The disruption in the global supply chain caused by the Covid-19 pandemic has led to an acute shortage of raw materials and intermediate input for local manufacturers. This, in turn, has prompted a reevaluation of the supply chain in favor of a shift towards local sourcing of materials and product development in the Nigerian manufacturing sector.
Even before the global supply chain disruption, the utilization of local raw materials in Nigeria’s manufacturing sector was on the decline. This downward trend was attributed to policy interventions in the official Foreign Exchange (forex) market by the Central Bank of Nigeria, which made it easier for manufacturers to import raw materials rather than source them locally. Additionally, issues such as poor access to credit and inadequate economic infrastructure further compounded the challenges faced by manufacturers.
However, a ray of hope emerged as local raw materials sourcing recorded an increase in the first half of 2023. This shift is a response to the growing challenges associated with sourcing foreign exchange. Manufacturers are now compelled to focus on obtaining raw materials domestically, despite the cost implications involved.
The recent Nigeria Manufacturing Equipment Expo (NME Expo) and Nigeria Raw Materials Exposition (NIRAM Expo) provided a platform for manufacturers to explore new production processes, embrace innovative technologies, and seamlessly source raw materials. The theme of the event – “Future Manufacturing: Building a Sustainable Roadmap to the Industrialization of Nigeria” – encapsulated the imperative of driving local sourcing and production.
In her keynote address, Dr. Doris Uzoka Anite, the Minister of Industry, Trade and Investment, emphasized the need for Nigeria to prioritize the development of the local raw materials sector to support manufacturing. She highlighted the significance of value addition and local sourcing in reducing reliance on imported raw materials and improving overall competitiveness.
Dr. Uzoka Anite also underscored the importance of adopting cutting-edge technologies and innovation to boost the competitiveness of local manufacturers and position Nigeria as a global manufacturing hub. She reiterated the government’s commitment to creating an enabling environment for manufacturers and implementing policies to facilitate ease of doing business and enhance infrastructure and logistics.
The President of the Manufacturers Association of Nigeria (MAN), Otunba Francis Meshioye, stressed the pivotal role of technology and innovation in shaping the future of manufacturing in Nigeria. He emphasized the need for manufacturers to efficiently balance production economies, strong products, and reliable business elements to compete favorably in the industrial marketplace.
The Raw Materials Research and Development Council (RMRDC) reaffirmed its commitment to expediting Nigeria’s industrialization through the optimal utilization of natural endowments as inputs for manufacturing. The Council’s collaboration with MAN underscored the importance of maximizing the benefits to stakeholders and reducing the cost of manufacturing amidst rising raw material costs.
The recent exposé of the nation’s raw materials and their potential to grow the manufacturing sector provided a comprehensive insight into the strides made towards local raw materials utilization and products development. The display of innovative technologies and locally sourced products showcased the promising future of manufacturing in Nigeria.
The collective efforts of the government, industry stakeholders, and manufacturing associations in prioritizing local sourcing, adopting innovative technologies, and fostering sustainable practices are poised to transform the manufacturing landscape in Nigeria. This concerted approach paves the way for enhancing the sector’s productivity and global competitiveness, positioning Nigeria as a hub for sustainable manufacturing.
