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2010: Mixed Grill For Nigeria’s Manufacturing Sector

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From all indications, Nigeria’s manufacturing sector has recorded some improvement last year due to a number of reforms initiated by the Federal Government.

The Manufacturers Association of Nigeria (MAN) says that macroeconomic indicators in 2009 showed that the country’s Gross Domestic Products (GDP) grew by 7.0 per cent in the third quarter of  last year, compared with 6.13 per cent in 2008.

The association says the growth was driven mainly by the non-oil sector, particularly agriculture, which accounted for 45.35 per cent of the GDP.

Industry operators attribute the feat to the latest round of Central Bank’s banking reform programme, which started in August 2009, saying that the reform has impacted positively on the manufacturing sector in 2010.

They also note that the Federal Government’s Power Sector Reform Programme, aimed at fully liberalising power generation and distribution, has also boosted production in the manufacturing sector.

They say that the two reforms, if well implemented, are capable of reviving manufacturing activities and the national economy, while aiding the fulfillment of the Federal Government’s Vision 20:2020, aimed at making Nigeria one of the top 20 industrialised countries in the world by 2020.

MAN, at its last annual general meeting, described the latest banking reforms as “timely, creative and critically beyond the teachings of liberal economic theory where the primary role of the central bank is macroeconomic stability and to ensure a stable banking sector’’.

The immediate-past President of MAN, Alhaji Bashir Borodo, conceded that it was rare for the CBN to initiate such initiatives to redeem the real sector of the economy directly, adding that such tasks often fell within the exclusive preserve of politicians, ministers of finance or national planning.

He noted that the World Bank and the International Monetary Fund (IMF) often viewed developing countries’ efforts to inject funds to prop up the real sector of their economies with scorn.

Borodo said that the banking reforms had a three-stage process which was first of its kind in any developing country, adding that the first involved the restructuring of existing short-term, high-interest loans into long-term loans with a low interest of seven per cent per annum.

Under this requirement, banks are expected to give loans to the real sector, using at least 50 per cent of funds received from the Bank of Industry (BOI), while the CBN guarantees loans given to

manufacturers and SMEs under the Medium Enterprises Credit Guarantee Scheme.

“We believe this bold initiative by the CBN will set the standards for monetary intervention in the real sector and will ultimately define the relationship existing between the banking sector and the real sector,’’ Borodo said.

The MAN chief, however, said that for the manufacturing sector, there had been “growing challenges’’, induced mainly by the economic environment of the country.

Industry watchers, nonetheless, commend the Federal Government for approving N150 billion for the manufacturing sector and N100 billion for the textiles sector, out of which N30 billion has already been disbursed through the Bank of Industry (BOI).

In spite of the intervention, experts say that many challenges are still confronting the manufacturing sector, stressing that a major limitation was the country’s energy crisis.

However, the Federal Government is not unmindful of the energy constraints, as it has repeatedly pledged to make electricity more available by 2012 via its power reform programme.

On August 26, for instance, President Goodluck Jonathan launched the roadmap to power sector’s reform, in which Federal Government is expected to sell off its 51 stake in electricity distribution companies and thermal power stations to private investors.

Under the new arrangement, however, the Federal Government will still own the transmission grid but the facility will be managed by private sector operators.

Prof. Barth Nnaji, the Chairman of the Presidential Taskforce on Power Issues, said that the Federal Government was working hard to ensure that some of the electricity companies were sold before the expiration of the administration’s tenure.

The measures notwithstanding, economic analysts contend that the limitations of the manufacturing sector include inconsistent government policies, poor infrastructure, multiple taxation, smuggling and importation of substandard goods.

They also criticise the new Federal Government policy lifting the ban on imported products such as textiles and fabrics, toothpicks and beverages, while extending the age of imported second-hand vehicles to 15 years.

The Minister of Finance, Mr Olusegun Aganga, who unveiled the new policy, defended it as a strategy aimed at encouraging Nigerian importers to use the country’s seaports for imports to generate revenue for the government and discourage smuggling of vehicles in particular.

However, Mr Jaiyeola Olanrewaju, the Director-General of the Nigerian Textiles Manufacturers Association (NTMA), said that the textile sector did not perform well in 2010.

He, nonetheless, said that some textile producers were able to have access to N30 billion, out of the N100 billion which the Federal Government gave to BOI for the development of the textile sector.

Olanrewaju bemoaned the state of Nigeria’s infrastructure, deploring the dismal state of the country’s energy situation in particular.

“Unless the power situation is improved, our industries cannot produce competitively, as imported items will continue to be cheaper than locally produced products,’’ he said.

The NTMA chief stressed that no country could develop without a productive industrial base which was hinged on regular electricity supply.

He described the new government policy lifting the ban on imported items, including textiles, as “absurd’’, particularly when locally produced fabrics could not compete with the foreign ones.

“Stakeholders believe that the ban should be maintained until the operating environment is conducive enough, as most of our textile products cannot compete with imported ones because of high costs of production,’’ he said.

Olanrewaju said that it was incongruous for the government that was struggling to ensure the revival of the country’s ailing industries to initiate such a policy that could provoke the closure of more industries and worsen the unemployment situation.

He wondered how textiles manufacturers would be able to pay back the loans they got from BOI if they were unable to produce and sell fabrics because of the new policy.

“It means the government will have to take over the factories sooner or later when they cannot meet their obligations to the bank,’’ he said.

Olanrewaju identified some of the problems plaguing the sector as poor electricity supply, prohibitive costs of diesel, gas and transportation, as well as bad roads.

Apart from textile manufacturers, other industrialists have bemoaned the government policy relaxing the import restrictions placed on certain manufactured goods.

They argue that the country would soon become a dumping ground for substandard products, stressing that the Federal Government must reverse the policy which, they say, is inimical to the growth of the manufacturing sector.

Alhaji Amuda Obelawo, the Chief Executive Officer of LOPIN Industries, identified the influx of substandard goods into Nigeria as the bane of the country’s industrial development.

Obelawo, who made the observation during a recent inspection of one of his factories by the Standards Organisation of Nigeria (SON), stressed that the importation of poor quality goods would thwart efforts to foster the country’s economic development.

“Government should stop the production and importation of substandard products because the buyers are just being hoodwinked to buy products that are not durable.”

“The proliferation of substandard products in our markets is affecting the national economy and is posing serious threats to the survival of indigenous companies.

“The government is also responsible for the problem because its agencies do not buy ‘Made-in-Nigeria’ products and quality goods because of selfish gains,’’ he said.

Obelawo alleged that many contractors handling federal, state and local government contracts were fond of using fake products in the projects, adding: “That is why we often see new buildings collapse.”

Still on the Federal Government policy, Dr David Obi, a member of MAN’s executive council, stressed that the lifting of the ban on the importation of certain categories of second-hand vehicles was an example of policy inconsistency.

Obi, who is also a member of the governing council of the National Automotive Council (NAC), urged the Federal Government to rescind its policy that increased the age of imported vehicles to 15 years, saying it would cause more harm than good.

He said that such a policy was a disincentive to some automobile companies itching to establish vehicle assembly plants in Nigeria, adding that such plants would also create more employment in the country.

Obi urged Nigeria to take a cue from China, a country which started the development of its automotive industry instead of relying on cheaper alternatives offered via the importation of used vehicles.

“In fact, China was offered thousands of used vehicles free of charge by Japan some years ago but China turned down the offer because it would interfere with plans to build its own automotive industry.”

“Nigeria now wants scraps to be brought into the country as vehicles without regard for the development of its automotive industry,’’ he said.

Obi stressed that the Federal Government ought to protect and nurture the development of the country’s automotive industry, urging it to learn lessons from the U.S. government which had always protected the country’s steel industry against unfair competition.

Reacting to the criticisms of the policy, Alhaji Jubril Martins-Kuye, the Minister of Commerce and Industry, said that the new policy on importation of used vehicles was not just to earn more revenue for government but also to make more vehicles available for the citizens.

He noted that neighbouring countries, such as Benin Republic and Togo, had 15 years as the age-limit for imported used vehicles, adding: “Somehow, these vehicles find their way to Nigeria through smuggling.

“And since the vehicles are smuggled into Nigeria, the Federal Government loses the revenue that should normally accrue to it and this is what we want to stop,’’ he said.

Besides, Martins-Kuye stressed that government only lifted the ban on those textiles that were not produced in the country, saying: “We only unbanned the importation of goods, including textiles, that we are not produced locally.’’

The minister pledged the Federal Government’s commitment to promoting Nigeria’s industrialisation, and explained why it had placed appreciable emphasis on the power sector’s reform, so as to make the country more investment-friendly.

All the same, industrialists have been commending the campaign to promote increased patronage of Made-in-Nigeria products, which started in August 2009, as a tonic that would boost the development of the manufacturing sector.

They, nonetheless, insist that the government should make concerted efforts to tackle the country’s energy crisis, saying that the achievement of a stable power supply in the country would play a pivotal role in transforming the national economy.

The experts also urge the government to provide low-interest credit facilities for manufacturers and reduce taxations on manufactured goods, while raising the duties payable on imported items to encourage local production.

All said and done, the experts believe that the development prospects for the manufacturing sector are quite bright in 2010.

 

Grace Yusuf

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Private sector gets N2.2tr credit in 30 days — CBN

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Private sector secured loans worth N2.22 trillion in 30 days ended June 30, the Central Bank of Nigeria (CBN) economic data for the month has shown.

Credit to Nigeria’s private sector rose to N83.26 trillion in June 2026 from N81.04 trillion in May, signifying a positive balance of N2.22 trillion month-on-month.

Year-on-year, the figure represents a nine per cent increase compared with the N76.13 trillion recorded in June 2025. The latest figures come as the CBN continues to balance efforts to control inflation with the need to support economic growth and expand credit to businesses.

The CBN data shows that credit to Nigeria’s private sector increased by approximately 2.74 per cent month-on-month between May and June 2026. Also, the CBN data noted that credit to the government fell slightly to N40.03 trillion from N40.38 trillion. Other assets, net, dropped to N10.76 trillion from N12.63 trillion.

The credit surge signifies sustained growth in lending to businesses and other private-sector borrowers during the month. The rise in private sector credit was recorded alongside an increase in net domestic credit, despite declines in credit to government and other assets.

Further analysis of the report says that compared with June 2025, private sector credit rose by about N7.13 trillion yea-on-year but net domestic credit increased by approximately N1.87 trillion during the month.

The CBN’s relatively tight monetary policy stance notwithstanding, more banks still loaded funds to the private sector within the period.  The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) held its 306th meeting on July 20 and 21.

The Committee reviewed recent developments in the global and domestic economies, assessed emerging risks to the outlook and considered their implications for monetary policy and retained all rates.

The Committee decided to retain the Monetary Policy Rate at 26.5 per cent; the Standing Facilities Corridor around the MPR at +50/-450 basis points and retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.

The MPC decision means that credit extension in the private sector will likely continue to rise because of rising confidence in the sector and calls by stakeholders for banks to invest in the private scetor instead of government securities.

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Solar Power: Host Communities Trust, Partner PIND  To Light Up Ikwerre Communities

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The Rivers 3 Host Communities Development Trust (RV3HCDT), in collaboration with the Partnership Initiatives in the Niger Delta (PIND), has launched stakeholder engagements across six host communities in Ikwerre Local Government Area as part of efforts to provide sustainable solar-powered electricity to communities that have remained without public power supply for over a decade.
The Chairman of the Board of Trustees of RV3HCDT, Dr. Kerian Wobodo, disclosed this during a two-day sensitisation and consultation tour of Ipo, Omademe, , Ozuaha, Ubima and Omerelu communities in Ikwerre Local Government Area over the week.
 Wobodo led members of the Trust and representatives of PIND to engage traditional rulers and other stakeholders on the proposed project.
Addressing the gatherings, he  said the engagements were designed to familiarise the host communities with the objectives of the project and win their understanding, cooperation and ownership before implementation.
The leader of the delegation, also stressed that  Trust considered it imperative to carry the people along from the planning stage to ensure transparency, inclusiveness and sustainability, noting that meaningful development can only be achieved through active collaboration with host communities.
Officials of PIND, while making their presentations, outlined the operational framework of the proposed solar-powered electricity scheme, describing it as a clean, reliable and environmentally friendly energy solution capable of transforming socio-economic activities in the benefiting communities.
According to the PIND representatives, the project will expand electricity access to homes, schools, healthcare facilities, markets and small businesses, boosting economic activities, improving livelihoods and accelerating overall community development.
They observed that the six communities have endured years of inadequate electricity supply, a situation they said has slowed economic growth, hampered educational advancement and limited access to essential social services.
The meetings featured interactive sessions during which community members sought clarifications on project implementation, maintenance, sustainability, community participation and the protection of the proposed facilities.
Members of the delegation addressed the concerns and assured stakeholders that all issues raised would receive adequate attention.
Youth representatives underscored the need to involve young people throughout the implementation process, calling for employment opportunities for qualified youths, skills acquisition programmes, ICT training, entrepreneurship development, capacity building and other empowerment  to complement the electrification project.
Responding, the delegation, leader reaffirmed that local content participation, youth inclusion, peacebuilding, security collaboration and human capacity development would remain integral components of the initiative, adding that the project is designed to deliver long-term socio-economic benefits to the host communities.
The consultation tour ended at Omerelu Community, where the Paramount Ruler, His Royal Highness Eze (Engr.) Ben O. Ugo, Elumuoha VIII, alongside members of the Council of Chiefs, elders, Ohas, youth and women representatives, commended the Rivers 3 Host Communities Development Trust and PIND for the initiative.
They described the proposed solar-powered electrification project as timely and transformative and pledged their communities’ full commitment and support towards its successful implementation.
By:  King Onunwor
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NDDC Intensifies Women Empowerment Initiative Across Niger Delta

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The Niger Delta Development Commission (NDDC) has reaffirmed its commitment to empowering women and the girl-child across the Niger Delta through expanded entrepreneurship, skills acquisition and sustainable livelihood programmes aimed at boosting economic independence and regional development.
The Managing Director of the Commission, Dr Samuel Ogbuku, made this known during the 2026 International Women’s Day celebration held in Calabar, Cross River State, recently.
Represented by the Assistant Director, Youths, Sports, Culture and Women Affairs, Dr Esther Philip Ogbuku said the Commission had continued to implement impactful programmes that equip women with practical skills, promote entrepreneurship and improve their socio-economic well-being.
He assured that the NDDC would sustain initiatives that encourage wealth creation, self-reliance and community development.
He said the Commission’s interventions are in line with its statutory mandate and the Renewed Hope Agenda of President Bola Ahmed Tinubu, expressing confidence that the training would provide participants with the knowledge and skills needed to establish sustainable businesses and improve their productivity.
Also speaking, the Cross River State Representative on the NDDC Board, Mr Orok Duke, said women and the girl-child possess enormous potential to excel in all fields of human endeavour, stressing that they remain vital partners in the socio-economic transformation of the Niger Delta.
Represented by his Special Assistant on Administration, Mr Bassey-Ita Duke, he reaffirmed the Commission’s commitment to promoting gender equality and creating opportunities that would enable women to attain their full potentials.
According to him, the Board, under the chairmanship of Mr Chiedu Ebie, and the management led by Dr Ogbuku, recognise agriculture as a key driver of economic growth, food security and sustainable livelihoods, adding that the Commission has continued to invest in animal husbandry, fisheries and crop production to improve household incomes across the region.
In a keynote lecture entitled, “Best Practices for Packaging Certified Products for Export,” a resource person from the Nigerian Export Promotion Council (NEPC), Mrs Christiana Ekeng, urged entrepreneurs to ensure that all non-oil products intended for export obtain the required certification before shipment.
Ekeng explained that certification enhances product credibility, facilitates access to international markets and ensures compliance with global export standards, while proper packaging helps preserve product quality throughout the distribution chain.
She identified the three stages of packaging as primary, secondary and tertiary, explaining that products must be properly packaged and arranged in cartons to minimise damage and meet export .
requirements
The Consultant to the Ukpai Empowerment Foundation, Dr Boma Nathan, commended the NDDC for sustaining programmes that promote women’s economic empowerment, describing the Commission’s intervention as a significant boost to inclusive development in the Niger Delta.
Nathan urged beneficiaries to take advantage of the opportunities provided by the Commission, noting that empowering women enables them to discover their potential, pursue their aspirations, improve their livelihoods and contribute meaningfully to the economic growth and development of their communities.
By: King Onunwor
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