Yemisi Izuora
Former South African President, Dr. Thabo Mbeki, has disclosed that the African continent loses at least $50 billion every year through trade miss-pricing which would make an important and positive contribution to the continent’s development efforts including industrialization.
Speaking at the 43rd Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN) in Lagos, Mbeki said,
“As we indicated, regarding the need for national cooperation in developing the Industrial Revolution Plan, so do we need similar cooperation to defeat the scourge of illicit financial outflows.
I am therefore suggesting that MAN and the rest of the corporate sector should take it as one of their tasks in the context of the industrialisation of Nigeria to join hands with the government and civil society to fight against the illicit financial outflows,”.
He said with current government policies in Nigeria, the economy is turning to the manufacturing sector to alter its fortunes after the global effect of the fall in price of crude oil and the need to salvage the local currency and increase earnings of foreign currency.
Mbeki who was guest speaker at the AGM with the theme “The Future of the Manufacturing Sector”; said the topic was apt as it points to governments new economic direction of diversifying the economy.
The President, MAN Dr. Frank Udemba Jacobs (MON) in his speech he said “Dr. Mbeki as guest speaker was chosen after a review of his antecedents and achievements as President of South Africa.
He stated further that during Dr. Mbeki’s tenure, the South African economy grew at a yearly rate of 4.5 percent.
Similarly, massive employment was created in the middle sector of the economy, leading to the creation of a large pool of middle class, especially with the implementation of Black Economic Empowerment, which led to a high demand for trained professionals. South Africa also attracted enormous Foreign Direct Investment, making it the focal point of African growth.
He concluded by saying, these are the things we expect of the Nigerian manufacturing sector now and in the near future.
President Muhammadu Buhari in his speech explained that the current CBN Forex policy was implemented to protect the manufacturing sector and increase local production.
Buhari who spoke through Vice President, Yemi Osinbajo however noted that the policy was still under review to ensure that its application does not hurt the market but ensure that items that should be eligible for foreign exchange are not left out.
Buhari reiterated governments efforts to boost power supply by middle of next year to about 5,000 megawatts.
“We are discussing extensively on power supply on a daily basis because we believe that the manufacturing sector is critical for economic growth and job and wealth creation,” he stated, adding that the economic structure of Nigeria must be diversified to ensure job creation, sustained growth and development of other key sectors such as agriculture, mining, amongst others.
“We are creating an enabling environment for things to fall in shape. We believe the manufacturing sector is key to attaining our set objectives as government to create job opportunities for our youths.
There is no way we can achieve economic growth without diversifying our economy through agriculture value chain, mining, oil and gas and the likes, but the missing link is the manufacturing sector,” Buhari said.