industrialisation

Lagos, Feb. 6, 2024: The Bank of Industry (BOI) and the International Finance Corporation (IFC) have stressed the need for joint investment financing to drive infrastructural development in Nigeria’s industrialisation agenda.

They also stressed the need for enhanced access to funding for businesses, women and youth to support sustainable growth in the country.

They said this at the BOI – IFC conference on Monday in Lagos with the theme: “Empowering Futures: A Collaborative Journey in Financing Nigeria’s Industrial Sector”.

Mr Sergio Pimenta, Regional Vice President Africa, IFC, said IFC’s investment portfolio in Nigeria was the second largest in Africa.

Pimenta said the investment stood at  two billion dollars, concentrated across trade finance, manufacturing, financial markets, and infrastructure.

He noted that the IFC’s strategic objectives in Nigeria were aimed at supporting diversified growth, enhancing inclusion, and promoting sustainability and job creation.

He said the corporation’s work fostered increased access to finance for Micro, Small, and Medium Enterprises (MSMEs) through financial intermediaries, supports agribusiness and manufacturing.

He suggested that to support sustainable growth in Nigeria, joint investment in MSME, industrialisation, agribusiness, energy, digitalisation and most importantly in youth and women was critical.

He added that the Nigerian financial sector had a key role to play in supporting trade, financial inclusion, and access to finance for MSMEs.

He noted that the aim was to increase access to finance for previously excluded individuals, and MSMEs.

Pimenta explained that to further strengthen its financial infrastructure, Nigeria recently embarked on legislative reforms to catalyse institutional and behavioural change among both formal lenders and borrowers across the country.

“Findings from the Nigerian Credit Infrastructure Reform showed that the country had made significant advances in strengthening its financial infrastructure in recent years.

“We at the IFC are confident that the reforms will unlock Nigeria’s strong potential,” he said.

He added that Nigeria’s rapidly growing population, projected to nearly double to 400 million by 2050, coupled with urbanisation.

This, he noted, underscored the urgent need for infrastructure development.

He, therefore, said that it was imperative to work together to close infrastructure gaps, which impeded private sector growth and overall economic development.

“One example is the housing sector. Although Nigeria possesses the entire key ingredients for a viable housing market, including a growing middle-class, millions of people in the country struggle to access affordable housing.

“Green buildings provide a $4.5 billion investment opportunity in Nigeria through 2025.

“Investing in housing stimulates growth in several areas, including the construction, manufacturing, and services sectors, and this contributes to job creation, inclusive growth, economic development, and shared prosperity.

“Improving access to finance for property developers and prospective homeowners can unlock opportunities in the housing sector, and we can explore solutions together”, he said.

He added that the IFC was working with financial institutions to develop and expand access to finance and mortgages for informal income earners and prospective homeowners.

“This includes developing a securitisation project with Nigerian financial institutions to help mobilise long-term capital for housing,” he said.

Similarly, Dr Olasupo Olusi, Managing Director, BOI, said the event was to collectively deliver a coherent, actionable plan towards advancing Nigeria’s industrial growth and development in line with President Bola Tinubu’s renewed hope agenda.

Olusi emphasised the need to focus on industrialisation as a pathway for economic diversification and how the financial sector could facilitate the building of a vibrant industrial sector.

This, he stressed, was important given that industrialisation was a key pillar of economic development and diversification, and that now was the perfect time to drive conversations.

He noted that Nigerians by nature were very entrepreneurial, and there was no paucity of good business ideas, but there existed a huge access to funding gap, though banks were on the lookout for bankable business opportunities.

“There is a huge access to funding gap, particularly within the Small and Medium Enterprises (SME) segment and the panel session seeks to identify products that will help close the gap and mitigate risks.

“The session, “unlocking sustainable funding for industrialisation”, tackles the critical issue of unlocking the deep pools of sustainable funds and mobilising same to achieve industrial development.

“Worthy of note is the IFC’s presence which underscores its strong commitment to supporting the development of Africa’s largest economy,  even as the event signifies the strong bond that exists between the BOI and IFC,” he said.

Lagos, Nov. 22, 2023: The Minister of Innovation, Science and Technology, Mr Uche Nnaji, has reaffirmed the Federal Government commitment to support Nigeria’s industrialisation agenda through demand-driven research and development.

Nnaji said this at the eighth Edition of the Nigeria Manufacturing and Equipment Expo (NME Expo) and ninth Edition of the Nigerian Raw Materials Expo (NIRAM Expo), on Tuesday in Lagos.

The event was organised by the Manufacturers Association of Nigeria (MAN) and the Raw Materials Research and Development Council (RMRDC).

The minister said the event’s theme: “The Future of Manufacturing: Building a Sustainable Roadmap to the Industrialisation of Nigeria,” was apt an promised to create an enabling environment for research and development.

According to him, the event serves as a critical window to embrace machinery and equipment to produce goods, support sustainable development and ensure Nigeria is not dependent on developed nations.

He noted that the RMRDC was exemplifying his support for industrialisation by its adherence to the development and promotion of pilot agricultural and mineral raw materials as well as process equipment to meet manufacturing industries requirements.

Nnaji said as Nigeria embarks on the implementation of the African Continental Free Trade Agreement, consistent engagements amongst stakeholders in the raw materials and manufacturing value chain of the economy was critical.

This, he said, was to avoid overbearing dumping of sub-standard raw materials and products on the country’s shores from various sources across the world.

“In line with the strategic implementation of the Presidential Executive Order No. 5, my ministry, through the RMRDC, has commenced the process for the establishment and replication of the centre across the six geo-political zones.

“This is to allow for even development of resource-based industrialisation and encourage local production of raw materials where Nigeria has the wherewithal and competitive advantage over and above other nations of the world.

“I urge industrialists and investors to replicate the process technologies showcased at the centre at commercial scale for increased manufacturing activities.

“I strongly advocate a strong Triple Helix initiative to deepen the collaboration and linkage between MAN and the agencies under my Ministry.

“The need for partnership such as the one between MAN and the RMRDC, further underscores the challenges of competition in the industrial place arising from the ongoing globalisation of world economies,” he said.

Abuja, June 28, 2023: The Republic of Korea says it is seeking collaboration with the Nigerian Government under the leadership of President Bola Tinubu on various areas to enhance and lead the fourth industrial revolution.

Mr Jang Sungmin, the Special Envoy of the President of the Republic of Korea, Mr Yoon Suk Yeol, disclosed this at a media parley on Tuesday in Abuja.

“Yoon Suk Yoel has sent me as an Envoy to this great nation, because it is the leader of Africa, has the biggest market, largest population, natural resources and biggest arable land.

“Nigeria has all the criteria for economy power in Africa; and Korea is a country that has all the technologies and development know-how and economy prosperity to lead the fourth Industrial Revolution.

“Korea is already leading that industrial revolution. So, President Yeol feels that by combining forces, Korea and Nigeria cooperation will not only lead to prosperity and faster economy development for Nigeria, but also prosperity for Africa.

“The composition of my delegation shows you that President Yeol is committed and willing to find more better ways to cooperate with Nigeria.

“Specifically, we look towards a younger generation work force and natural resources that Nigeria has, especially to enhance and lead the World’s fourth Industrial Revolution,” Sungmin said.

The envoy reiterated that Korea has the technologies, knowledge, skills and human resources for technological transfer, especially in the areas of agriculture, cyber space, security, bio-technology, oil refinery, saying “Korea looks forward to a future with Nigeria”.

He further explained that as Nigeria’s new leadership under Tinubu had opened up the county for business, Korea is interested in investing more in Nigeria.

Sungmin explained that President Yoel’s comprehensive diplomacy and foreign policy is about global capital state which lies on three pillars.

“It is to enhance cooperation especially with countries who share our common values of Liberty, Peace and Prosperity. Those were the three pillars that underlines the foundation of our foreign policy.

“We will like to share and extend our cooperation, especially with countries who share these common values.

“We believe that Nigeria, especially the new government of Tinubu and Vice President Kashim Shettima, is a government we can share these common values with to enhance new economy cooperation.

“Korea used to receive aid from other countries. That is how we became the 10th largest economy in the world.

“Now we are using that position to give back to the international community. So, we look forward to a cooperation with Nigeria in this sense,” he said.

Contributing, the Vice President of SK company in Korea, Mr Guillaume Barthe-Dejean, said the post-Korean war was characterised by fast development,

which is a product of collaboration between public and private sectors.

He said private sector in Korea like SK, Samsung and others have supported the Korean Government to develop economy policies, adding that the model allows Korea to become a power house.

“Today, Korea is the 10th world largest economy, the fourth world largest exporter and the country which is leading the 4th Industrial Revolution.

“SK is happy to be in Nigeria. Bonnie Light Crude irrigate the world economy and Nigeria has resources and fuel that could power the 4th Industrial Revolution.

“In the last five years, the world experienced decline in the supply chain globally, and I think for this reason Korean companies would be interested to partner with countries in Africa to stabilise the supply chain,” Barthe-Dejean said.

The delegation include Ambassador of the Republic of Korea to Nigeria, Mr KIM Young-chae; Deputy Secretary President Yeol for Future Policy, Mr YOO Chang-ho; and Barthe-Dejean

Others were Chief Financial Officer, LG Electronics Nigeria Corporation, Mr KIM Inkyu; Economic Attaché, Korean Embassy in Nigeria, Mr Choi Jungwon; and Ms Park Hyesong of Korea International Development Agency.

Mr Antonio Pedro, Acting Executive Secretary, United Nations Economic Commission for Africa (UNECA), has called for inclusive and sustainable investment in industrialisation to enhance the economic growth in Africa.

In a statement issued on the website of UNECA, Pedro said this at an event on the sidelines of the African Union (AU), Summit on Industrialisation and Economic Diversification.

The ongoing summit is being held in Niamey, Niger from Nov. 20 to Nov. 25.

The event was on inclusive and sustainable industrialisation, as a driver of resilience and stability for the Sahel.

It was organised, on Tuesday, by the Government of Niger, the AU, UNECA Subregional Office for West Africa, and the Office of the Special Coordinator for Sahel Development.

It was also organised by the United Nations Industrial Development Organisation (UNIDO).

Pedro said that eight of the fifteen countries making up the West African sub-region were Sahelian and that it was “extremely” important to invest in industrialisation.

“At the level of intra-African sectoral trade, it is estimated that full implementation of the African Continental Free Trade Area (AfCFTA), will increase exports in agribusiness by 41 per cent, industry and services by about 40 per cent, and energy/mining by 16 per cent by 2045.

“In West Africa, including the Sahel region, exports are expected to increase by 24 per cent in industry, 23 per cent in agribusiness, and 11 per cent in energy and mining.

“As a result, in absolute terms, nearly three-quarters of the gains in exports from West Africa to Africa would come from industry,” he said.

He also said transforming economic structures was one of the five strategic foresights towards achieving the Sustainable Development Goals, directly aligned with inclusive and sustainable industrialisation.

“Structural transformations remain one of the major challenges of the countries of the Sahel with industrialisation as the main channel to achieve it.”

Also, Ms Salamatou Gourouza, Minister of Industry and Youth Entrepreneurship, Niger said the Africa could not achieve industrialisation or economic diversification without the youth and women.

“We tend to forget the youth and women. We cannot achieve industrialisation or economic diversification if we do not include them in the industrialisation value chains.

“The issue of inclusive industrialisation in the Sahel is of prime importance,” Gourouza said.

Moreover, Abdoulaye Mar Dieye, spoke on the need to have a coalition of African industries, especially the private sector, small and medium enterprises and youth.

Dieye is the Special Coordinator for Development in the Sahel.

He said they would serve as driving forces for industrialisation in the Sahel and Africa in general.

“The time for speeches and strategy design is over. Niamey Summit must be a time for action to change the narrative of the Sahel.”

The UNIDO Representative in Senegal, Christophe Yvetot spoke on the rank occupied by Africa in terms of Industrialisation.

“With 17 per cent of the world’s population, the African continent has only three per cent of the wealth, an absurd situation that must be reviewed.

“To get out of this rut, industrialisation is the right way because by boosting industry to 10 per cent, we reduce poverty by 70 per cent,” Yvetot said.

He said the industrialisation of Africa was possible.

“It is just a matter of leadership, access to land and energy, Agro-Industrial Poles establishing, barriers reducing and governance improvement,” he concluded.

The objective of the side event was to present a new narrative for the Sahel based on the opportunities for youth and women offered by industrialisation and economic diversification.

Also, it was to sensitise private and public sector participants to the potential of agribusiness activities in various value chains to further support resilience in the Sahel through growth and job creation.

Furthermore, it was to create a better understanding by participants of the strategic investments needed to support agribusiness in the Sahel, and to present Niger’s industrial priorities and best practices.

President Muhammadu Buhari has reiterated the Federal Government’s commitment to drive industrialisation focusing on Small and Medium Enterprises (SMEs).

Buhari said this while declaring open the 17th Abuja International Trade Fair with the theme: “Creating an Export-Ready Market Through SMEs Digitisation”.

Represented by Otunba Adeniyi Adebayo, the Minister of Industry, Trade and Investment, Buhari recognised the importance of SMEs to the economy and said that developing the sector remained one of the priority areas of his administration.

According to him, the SMEs segment is critical to the stimulation of economic development as no economy can thrive without robust trade.

Identifying the significant role trade plays in the economic growth of a nation, Buhari said that it helps to build wealth and improve foreign reserves.

“Trade is key to ending poverty across countries, raising standards of living and improving productivity.

“Nigeria is estimated to be home to more than 40 million MSMEs which, together, contribute about 48 per cent to our Gross Domestic Product (GDP).

“Many of us just see SMEs as the Mama that fries akara or the friendly “malam” that owns the kiosk on our street. That is not the case; some of the fastest growing Fintech start-ups in Africa are SMEs.

“This trade fair provides an opportunity to change the narrative of what SMEs are and demonstrates how innovative they can be.

“Here present, I see enterprises with the capacity to produce in large quantities. I see enterprises that employ large cross-sections of our youth population.

“I see enterprises with the capacity to export. I do not see small businesses here; I see future mighty businesses,’’ the president said.

He expressed the Federal Government’s determination to help SMEs achieve their full potential.

According to him, the government has developed strategic policy interventions, enshrined laws and established institutions to create a supportive business environment for entrepreneurs and SMEs.

“In line with this, the Ministry of Industry, Trade and Investment has developed a programme that will enhance access to credit for over 10 million SMEs at single digit rate.

“Aside from provision of finance, this project will address key ecosystem issues such as development of SMEs clusters to lower operating costs as well as capacity building initiatives.

“The ministry has also commenced the process of adopting a centralised automated platform for the registration of trademarks, patents and designs.

“The overall objective is to fully digitise existing records and automate the registration process to enable ownership and commercialisation of innovation,’’ he said.

Buhari said that the Federal Government also approved fiscal incentives for SMEs including exemption from Company Income Tax and Value Added Tax for enterprises with annual turnover of less than N25 million.

“The Pioneer Status Incentive also grants tax holidays for start-ups across multiple sectors.

“In 2016, the Federal Government approved establishment of the Presidential Enabling Business Environment Council (PEBEC) to eliminate bureaucratic constraints to doing business in Nigeria and make the country a progressively easier place to start and grow a business.

“The Nigerian Investment Promotion Commission (NIPC) also has One Stop Investment Centre which comprises 27 government agencies.

“The aim is to significantly reduce the time spent in processing regulatory approvals.

“While the Federal Government is doing its part, we need to rethink our impression that SMEs are small businesses and focus on how they can be energised as vehicles for economic growth.

“As always, the Federal Government remains committed to ensuring ease of doing business and creating an enabling environment for businesses to thrive,’’ Buhari said.

Earlier, the Minister of the Federal Capital Territory (FCT), Muhammad Bello, urged investors to leverage the opportunity provided by the trade fair to invest.

According to him, FCT is in constant need of investments in critical sectors such as agriculture and waste management.

“We will continue to strive to make the FCT a haven for investors,’’ Bello said.

On his part, Dr Al-Mujtaba Abubakar, the President of Abuja Chamber of Commerce and Industry (ACCI), said that the objective of the fair was to create an export ready market for SMEs.

“Aside promoting businesses, the 17th AITF will also strengthen trade and investment opportunities in the country, thus, offering a neutral and open atmosphere for blue-chip companies, trade groups/associations and government,’’ Abubakar said.

Dr Johnson Anene, the Chairman National Chamber of Commerce Trade Centre, said that the trade fair was focused on promoting local products.

He said it would provide a platform to educate SMEs operators to improve on the quality of the products to avoid rejection in foreign markets.

Anene urged FCT residents to patronise made-in Nigeria goods and also appealed to investors to explore new investment opportunities provided by the trade fair.