Brand owners under the umbrella of the Manufacturers Association of Nigeria (MAN) and the Nigeria Employers’ Consultative Association (NECA) have commended the federal government for the recent Nigeria First policy on public procurement that prioritises patronage of Made-in-Nigeria goods and services.
The Federal Executive Council (FEC) approved a new policy framework, tagged the ‘Renewed Hope Nigeria First Policy,’ last Monday. This framework aims to strengthen Nigeria’s domestic economy and promote local content.
Minister of Information and National Orientation, Mohammed Idris, had, during a media engagement after the FEC meeting in Abuja, described the planned ban on importing foreign goods as a bold shift in the country’s economic approach.
According to MAN and NECA, the new policy would enhance local productivity, increase investments, potentially boost GDP by 56 per cent and reduce unemployment by 37 per cent.
In a separate statement yesterday, the Director General of MAN, Mr. Segun Ajayi-Kadir, said that the policy directive would impact on development of local content, which borders on appropriate technical knowledge transfer to Nigerian professionals.
Ajayi-Kadir said this initiative was a welcome development in the right direction, adding that, “It is cheering news and long-awaited relief to resilient Nigerian manufacturers, who, despite the tough economic environment, have demonstrated enduring faith in the potential greatness of the Nigerian economy.
“We see this initiative as a true and definite demonstration of the government’s commitment to promoting local industries, boosting economic growth, and creating jobs for Nigerians.
“By giving preference to locally produced goods and services, we can stimulate demand, increase capacity utilisation, and attract investments into the manufacturing sector.”
He said MAN believed that this policy would have a multiplier effect on the economy, leading to increased economic activity, improved GDP growth, and enhanced competitiveness of Nigerian industries.
Furthermore, he said, from earlier survey, the effective implementation of such an initiative (as should be stipulated in the consequential executive order) would scale investments and potentially boost GDP by 56 percent, reduce unemployment by 37 per cent and increase firms’ willingness to employ from 1.5 per cent to 22.6 per cent.
He stressed the need for all tiers of government, private sector entities, and individuals to support this initiative by patronising Made-in-Nigeria goods and services.
“This is with a special focus on uniformed government agencies and institutions (including the military and police), the legislature and quite importantly, the Presidency.
“All government contracts should prioritise the patronage of made-in-Nigeria materials. So, the government needs to consult with manufacturers on the way forward to achieve effective and efficient implementation,” he said.
According to him, the new directive was long overdue, and the government, being the biggest spender, would do well to lead by example.
“This will certainly send the right signals and raise consumer confidence in made in Nigeria products,” Ajayi-Kadir said.
He added: “I would say that Mr. President has blown the whistle, let the race to realise the full potentials of our economy begin.
“Let us recommit to the beneficiation of our natural endowments. Let us put action to consuming what we produce, so that we can expand the production of what we consume. This way, we can build a prosperous, more diversified and inclusive economy that benefits all Nigerians.”
In his reaction, the Director General of NECA, Adewale-Smatt Oyerinde, said that the new policy would boost local production and stimulate the economy.
Oyerinde stated that. “This is a great move, a strategic economic imperative that we’ve been clamouring for.
“Over the past few years, we’ve urged the government to prioritise the patronage of made in Nigeria goods, as this will not only promote local production but will fundamentally reduce the pressure on forex demands, stimulate local industrial growth and facilitate job creation and preservation among many others.”
He added, “We commend the government for this move and urge a thorough implementation. Without implementation across all Ministries, Departments and Agencies, the policy could suffer the fate of many like it.”
For his part, Ndume also commended the present administration’s move to ban the importation of foreign goods that could be produced in the country.
Ndume, a former Senate Leader, in a statement yesterday, said the bold initiative by Tinubu would go a long way in promoting indigenous entrepreneurs.
He also said it would boost the local economy and generate employment for Nigerians.
He added, “It is heartwarming to hear that President Tinubu has taken this bold decision to ban imported goods that can be produced locally.
“This will be a major boost for indigenous businesses amid the slipping Nigerian economy.
“If implemented faithfully, it will shield our local producers striving to find their feet from being choked out of existence by established foreign investors who flood our market, unhindered, with goods that are cheaper and even substandard.
“With protection of local industries, there will be employment for our employable youths, the measure will also boost our Gross Domestic Product (GDP), and the value of Naira will appreciate.
“This is because there will be less strain on our foreign reserves, since the demand for foreign exchange by importers of such foreign goods would drastically reduce.”
The lawmaker also suggested to the Federal Government to “also impose heavy taxes on some of the foreign goods to discourage Nigerians from buying them and pick locally produced items.”