Governor of the Central Bank of Nigeria (CBN), Dr Olayemi Cardoso, has urged manufacturers to take a leading role in diversifying Nigeria’s foreign exchange earnings away from crude oil dependence.
Cardoso, who was represented by the Director, Trade and Exchange Department of the bank, Aliyu Ashiru, made the call at the 54th Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Apapa Branch in Lagos. He said Nigeria’s economic structure had, for decades, been dominated by crude oil exports, which accounted for over 80 per cent of FX inflows.
This, he said, had made the economy highly vulnerable to external shocks. He stressed that the manufacturing sector holds great potential to conserve FX, expand Nigeria’s export base with value-added products, create jobs across skill levels and enhance macroeconomic stability. He noted that a deliberate, coordinated long-term strategy is needed to unlock the sector’s full potential and transform it into a major forex earner.
He listed strategic pillars for manufacturing-led FX growth, including policy and regulatory alignment, investment in infrastructure and energy, access to finance and FX, value addition and backward integration, while stressing the need for a comprehensive national industrial policy that prioritises export-oriented manufacturing.
“This policy must be stable, predictable and aligned with the trade, monetary and fiscal frameworks. Incentives such as tax holidays, duty waivers of imported machinery, export rebates and investment guarantees should be targeted at manufacturers that produce for export markets. Nigeria must move from exporting raw materials to value-added products and this requires deliberate investment in backward integration, especially in agro processing, petrochemicals and solid minerals,” he said.
Cardoso assured that the CBN would continue to support the sector through proactive monetary policies and targeted development financing interventions.
In his remarks, MAN President, Francis Meshioye, said volatility in global oil prices had shown the urgency of diversifying Nigeria’s forex sources. He identified key areas for manufacturers to drive FX earnings, including enhanced competitiveness through improved infrastructure, lower production costs, access to affordable finance and promotion of high-export-potential products.
Meshioye also called for government intervention in industrial clusters, particularly in the Amuwo-Odofin and Apapa areas of Lagos State. “We urge government at all levels to look into the terrible road networks around Amuwo-Odofin and Kirikiri industrial layouts, where many companies operate.
“Firms are willing to support road and drainage rehabilitation in exchange for tax breaks. Rehabilitation of roads in industrial zones will reduce vehicle wear and tear, improve logistics and boost competitiveness,” he said.
He further called for harmonisation of taxes and levies, particularly at the local government level, to reduce exploitation and enhance ease of compliance for manufacturers.
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