The Manufacturers Association of Nigeria (MAN) has commended the Federal Government of Nigeria’s new public procurement policy directive that emphasised patronage of Made-in-Nigeria goods and services.
MAN also said that the new policy would increase investments, boost GDP by 56 per cent and reduce unemployment by 37 per cent.
In separate press statement on Tuesday, the Director General of MAN, Mr. Segun Ajayi-Kadir, said that the policy directive would impact positively on development of local content, which borders on appropriate technical knowledge transfer to Nigerian professionals.
Ajayi-Kadir described the directive as a welcome development and a move in the right direction, adding that “it is a 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 that 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 per cent, 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 patronizing 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 prioritize the patronage of made in Nigeria materials. So, government needs to consult with manufacturers on the way forward to achieve effective and efficient implementation,” he said.
According to him, the new directive is long overdue, and 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 realizing 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 own reaction, the Director General of Nigeria Employers’ Consultative Association (NECA), Mr. Adewale-Smatt Oyerinde, said that new policy would boost local production and stimulate the economy.
Oyerinde ssid 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 faith of many like it.”
