Nigeria is a great country, when it comes to space and capacity. But the country lacks basic amenities that make the economy one of the biggest in the world. A latest finding have shown three cogent reasons why this is so.
According to Manufacturers Association of Nigeria (MAN), the challenges include inadequacy of physical and socio-economic infrastructure; shortage of skilled power; multiple taxes; and trade malpractices like smuggling and fake or counterfeit products.
As it stands, the setbacks, resulting from the challenges in the manufacturing sector, have impeded the competitiveness of Nigerian products and rendered such outputs unattractive in the global market.
High cost of funds, insecurity, regulation and or certification of some products, continue to hamper the competitiveness of the manufacturing sector.
What are the probable solutions?
Since the success of Nigerian economy depends largely on the success of the manufacturing sector of the country, massive investment should be made in infrastructure upgrade, in a bid to accelerate development in the sector, through public private partnerships.
In addition to that, things could work better, if the Federal Government frees the logistics of human and material movements across the nation. That means traffic or bottlenecks will be dealt with squarely on all sides.
Also, the Bank of Industry and other development finance institutions should be adequately capitalised in order to guarantee easy access to long term funds at low single-digit interest by the real sector, while at the same provision of adequate and good electricity to the manufacturing sector cannot be over emphasised.
MAN, through its number one man has called for the resuscitating refineries and the full deregulation of the down stream sector of the petroleum industry, and the need for the fast tracking of work on the harmonization of taxes and levies.