Business
Justifying N500bn Manufacturers’ Lifeline
The way he came to power was everything but smooth and so he is trying his best to impress on the people that he is equal to the task which the leadership of a complex country like Nigeria has placed on his shoulders. Hence, the changing of the old order seems to be the major challenge of the Jonathan administration which has so far not spared any stone in its attempt to turn around the fortunes of the common man in Nigeria for good.
It is in pursuit of this challenge that the administration moved to make petroleum products available to ease transportation problems facing the people, a development which has drastically reduced the expletives the common man throws on governments before this administration. Thus, towards reducing the tedium of doing business in Nigeria the federal government recently released the whopping sum of N500 billion to the manufacturing sector to enable major players reactivate moribund and ailing industries to boost the economy. Unveilling the package recently, the Vice President, Arc. Namadi Sambo noted that of the amount, N100 billion is allocated to the textile industry in response to the demands of investors in the sector for financial aid. Already, he said, N40 billion out of the allocation to the textile industry had been disbursed to some investors in the sub-sector.
Mindful of the potentials which the manufacturing sector has in boosting the nations Gross Domestic Product (GDP) and accelerate the diversification of the economy grossly dependent on crude oil export, this plan to revive the manufacturing sector by injecting much needed funds is highly commendable.
However, in view of the high rate of youth unemployment which a robust manufacturing sector could help in redressing, it is hoped that the disbursement of the N500 billion bail-out fund would not be politicised if it must achieve the objective it is set to meet.
This fear was expressed at the 49th annual general meeting of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture, NACCIMA held in Abuja, not too long ago. At that forum, NACCIMA lamented the dwinding fortunes of the nation’s industrial sector. Reviewing the economy, stakeholders decried the drop in industrial capacity to an average of 36 per cent in May 2009. In his articulation of NACCIMA view, its president, Dr Simon Chukwuemeka Okolo blamed the decline in industrial capacity utilisation to the poor operating environment especially very low credit access by operators and infrastructural decay. Okolo observed the initial N70 billion Textile Fund and the N200 billion Special Agric Fund which were aimed at developing the real sector were yet to show desired positive impact on the economy.
“Therefore, government should as a matter of urgency address the current character of credit allocation which shows high degree of disconnection of the financial system from the real sector of the economy,” Okolo observed.
In fact, Okolo advocated the setting up of sector specific development banks like in other countries to restore the real sector as the driving force of the economy and the need to engage the private sector through the Public Private Partnership (PPP) approach by putting in place the appropriate machinery and strategic framework to develop the real sector to enable it drive the economy cannot be over-emphasised.
All said, government’s gesture towards the manufacturing sector and the textile industry in particular is aimed at employment generation for Nigerians. For instance, the textile industry in its hey days in the 1980’s had over 70 firms which together employed over 500,000 workers. Today, the industry, a mere shadow of its original self has no more than 20 firms still in operation with just over 20,000 employees, hence the interest of government in revamping the textile industry which is a major employer of labour.
Besides, Okolo who is also a member of the Presidential Advisory Council (PAC) urged the Federal Government to endeavour to diversify the revenue base of the country through serious encouragement of non-oil exports in the country, stressing that unemployment has continued to soar in the country with dwindling revenue inducing budgetary constraints for the federal government. He then urged the federal government to improve the country’s investment climate to encourage development of industries that will boost production of goods for local consumption and ease the unemployment situation in the country. It follows that the totality of federal government policies must be aimed at boosting local industries which in turn would address the unemployment problem in the country.
Clearly, the glut in the labour market has rubbed off negatively on even the few that are employed. This is why in its ranking of living condition around the world, the United States based Newsweek Magazine judged Nigeria to be second to the worst. The analysis examined factors such as education, healthcare, quality of life, economic dynamism, political environment, the proportion of employed people in the population and industrial output. That government is sensitive to these issues could be gleamed from the ongoing revolution in the manufacturing and power sectors. The solution to the inadequacy of power and energy is considered extremely necessary as the epileptic power outage in most parts of the country has not only created untold hardship for the citizenry but has led to low capacity utilisation of manufacturers as well as reduced productivity of the real sector operators who depend on private provision of alternative sources of electricity through power generators, thereby making the cost of doing business in the country very high. The task to release the country from the vice grip of retrogressive elements has come and the Jonathan/Sambo government needs all the support it could muster to drive the economy. With a buoyant ceremony and near full employment for youths the scourge of militancy in the Niger Delta region and the uprising by youths in the Boko Haram sect would be a thing of the past.
The Minister of State for Industry, Trade and Investment, John Enoh said this at the 8th annual induction and conference of the Chartered Institute of Project Managers of Nigeria (CIPMN).
He explained that abandoned projects continue to lock up public funds that could have been used for infrastructure development, industrial growth, job creation and essential social services.
Represented by the ministry’s Permanent Secretary, Chris Osa Isokpunwu, he said the impact goes beyond financial losses, as incomplete projects affect communities and limit access to important public services
He cited examples of that remain unopened, schools that cannot accommodate students, roads that fail to connect communities and electricity projects that have not delivered their intended benefits.
The Registrar-General and Chief Executive Officer of CIPMN, Henry Ifeanyi Mbadiwe, also identified poor project management as a major challenge affecting development in Nigeria.
He revealed that the institute had developed a project management curriculum for Nigerian universities, which has received approval from the National Universities Commission (NUC). The programme is expected to enable universities to offer project management as a bachelor’s degree.
Mbadiwe further referenced findings by the Presidential Projects Assessment Committee, which identified 11,886 ongoing federal capital projects in 2011, with an estimated financial commitment of ?7.78 trillion.
He noted that inadequate planning, supervision, accountability and implementation were among the factors contributing to the abandonment of projects across the country.
The minister called for stronger project management structures across ministries, departments and agencies to improve planning, monitoring and evaluation.
He added that the Federal Ministry of Industry, Trade and Investment had introduced a 90-day implementation reporting cycle to strengthen transparency and monitor the progress of government programmes.
Ikenga said the company remained committed to Nigeria’s power sector and would continue investing in its operations despite the challenging business environment.
He spoke in Lagos at the third edition of the Shell Power Conference, themed “Powering Nigeria’s Progress: Turning Ambition and Action into Sustainable Impact”.
The Transcorp Power chief said the company would sustain electricity generation, invest in its facilities and deliver value to shareholders.
“Transcorp Power is a long-term player, not a short-term player. This year has been challenging, but what is important is getting power to schools, hospitals and businesses to power progress,” he said.
Ikenga said the company’s focus on operational efficiency and investment had strengthened its contribution to Nigeria’s electricity supply.
He disclosed that since acquiring the Ughelli Power Plant in Delta State in 2013, Transcorp Power had quadrupled its available generation capacity.
He also said the company became the first privatised power generation firm to receive a post-privatisation discharge certificate after fulfilling all its privatisation obligations.
The company’s unaudited results for the nine months ended September 30, 2026, showed a profit before tax of N83.1 billion, while its profit-before-tax margin rose to 31.2 per cent from 29.6 per cent recorded in the corresponding period of 2025.
Its total assets rose to 11.7 per cent amounting to N629.5 billion, while shareholders’ funds grew 8.9 per cent to N199.8 billion. Cash and cash equivalents also rose to N10.3 billion, supported by improved collections.
On the company’s contribution to grid stability, Ikenga said Transcorp Power’s black-start capability enabled it to restart operations without relying on electricity from the national grid.
He explained that the capability allowed the company to support power restoration following grid disturbances, helping to restore electricity supply to homes, businesses and industries.
Ikenga noted that Nigeria had an installed electricity generation capacity of about 13,000 megawatts, with an estimated potential of 50 gigawatts, adding that realising the potential would require effective coordination across the entire value chain.
“Everything in the value chain has to work,” he said.
He called for stronger collaboration among federal and state governments, regulators and private-sector operators, alongside increased private investment, to build a sustainable electricity market.
This was contained in a statement issued on Thursday by his Senior Special Assistant on Communications and Press Secretary, Maryann Duke.
The statement said Oyedele pointed to “improved digital systems, including electronic invoicing, as a key driver behind a record of N33tn in government revenue collected between January and October 2026.”
The minister said the performance demonstrated the potential of technology to improve revenue administration, strengthen compliance and increase efficiency across government institutions.
Speaking on the theme, ‘Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation,’ Oyedele warned that Nigeria risked losing substantial economic opportunities if it continued to depend heavily on foreign digital infrastructure.
Citing Nigerian Communications Commission figures, he disclosed that the country recorded more than 157 million active internet subscriptions as of May 2026.
He explained that these connections generated significant volumes of information through financial transactions, healthcare, education and taxation.
However, citing estimates from the Nigeria Data Protection Commission, Oyedele said as much as 90 per cent of the country’s data was hosted abroad.
According to him, the situation has implications for foreign exchange expenditure, employment opportunities, technological skills and Nigeria’s control over information generated by its citizens.
He compared the country’s reliance on foreign digital infrastructure with its historical dependence on imported refined petroleum products, warning against a situation where Nigerian data would be processed abroad and the resulting services sold back to domestic users.
The minister consequently advocated greater investment in local data infrastructure, technical expertise, cybersecurity and predictable regulations to enable Nigerian businesses to capture more value from the digital economy.
He clarified that digital sovereignty should not translate into technological isolation but should strengthen Nigeria’s capacity to participate competitively in international markets.
Addressing graduating students, Oyedele urged young Nigerians to become developers of technological solutions rather than remain primarily consumers of products created elsewhere.
He identified artificial intelligence as both a disruptive force and an opportunity for innovation, advising graduates to acquire relevant digital skills alongside critical thinking, creativity, sound judgement and integrity.
The minister also cautioned against irresponsible online behaviour, explaining that digital footprints increasingly influence employment prospects, commercial relationships and professional credibility.
Oyedele outlined five priorities for graduates, including continuous learning, value creation, integrity, responsible digital citizenship and active participation in national development.
“Your degree is evidence of what you have learned. Your competence will demonstrate what you can do. Your character will reveal who you truly are,” he told the graduating students.
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