FG to Establish Multi-Stakeholder Committee to Address Industrial Growth Challenges – John Enoh

The Nigerian Government is set to establish a multi-level stakeholders steering committee and workgroup to tackle the key bottlenecks impeding industrial growth and the development of Small and Medium Enterprises (SMEs) in Nigeria, according to the Minister of State for Industry, Trade, and Investment, John Enoh.

Enoh made the announcement on Wednesday during an interactive session with industry stakeholders and members of the organised private sector in Lagos. He highlighted the importance of addressing the challenges facing the sector to ensure the country’s meaningful progress. The minister noted that the steering committee would bring together key players in the industry, including him and the President of the Manufacturers Association of Nigeria (MAN), to co-chair the workgroup and work collaboratively to identify and resolve sectoral issues.

“The workgroup, with the MAN president and myself as co-chairs, will bring together key stakeholders to identify the challenges and provide solutions for industrial growth in Nigeria,” Enoh stated. “We will meet quarterly, starting with another session in the next three months, to ensure continuous progress.”

The minister stressed the need for inter-ministerial collaboration to effectively tackle the pressing issues hindering trade and business growth across Nigeria. “I’ve realized that many challenges in this sector are linked to other sectors. We must work together across ministries to achieve meaningful results,” he explained.

The President of MAN Francis Meshioye, raised several concerns during the meeting, with epileptic power supply being one of the biggest obstacles facing manufacturing in Nigeria. He called for increased investment in the power sector, as many power companies have failed to deliver on promises to improve electricity supply.

“We need immediate investment in the power sector. Without it, we cannot expect to see meaningful growth in manufacturing,” Meshioye said, also decrying the issue of multiple taxation faced by businesses. He urged the government to implement policies that promote the patronage of locally produced goods.

Enoh also addressed the ongoing issue of the $2.4 billion foreign exchange (FX) forward contracts that the Central Bank of Nigeria (CBN) has yet to settle. This delay has been negatively impacting manufacturers, many of whom have faced financial losses. In response to concerns raised by industry stakeholders, the minister assured that he would engage with CBN Governor Olayemi Cardoso to resolve the matter.

“I’m committed to addressing the FX contract issue with the CBN governor. As soon as next week, I will begin discussions on this matter, and I will share the outcome with MAN and other industry stakeholders,” he affirmed.

Enoh also pledged to work closely with industry groups to assess existing policies and redesign them where necessary to meet the evolving needs of the manufacturing sector. He emphasized that the government must actively support the growth of locally produced goods by prioritizing them in government procurement.

In addition to addressing the challenges in power supply and taxation, Enoh called for renewed efforts to revive the country’s textile industry, which he described as a “dead sector.” He expressed his concern about the decline of the once-thriving industry, which employed thousands of Nigerians, and called for a comprehensive review of policies to make Nigerian textiles competitive again.

“I believe the Nigerian textile industry can be revitalized, but we need to examine why it’s struggling and how we can address these challenges,” he said.

Promoting Made-in-Nigeria Products

The Minister also reiterated the importance of promoting made-in-Nigeria products. Segun Ajayi-Kadir, the Director-General of MAN, emphasized the need for all ministries, departments, and agencies (MDAs) to prioritize locally produced goods to stimulate economic growth. Ajayi-Kadir argued that supporting local manufacturing through policy reforms and strategic government support would significantly benefit Nigeria’s economy.

“I urge the ministry to ensure that all MDAs fully support made-in-Nigeria products,” he said. “This is essential for the growth of the sector and the broader economy.”

Collaboration for Industrial Growth

The interactive session marked the first engagement between Enoh and industry stakeholders since he assumed office in October. He concluded the meeting by stressing the need for continued collaboration between the government and industry stakeholders to drive industrial growth, tackle challenges, and achieve the desired outcomes for Nigeria’s economy.

“As we move forward, we must stay committed to the task of rebuilding Nigeria’s industrial sector. Together, with the support of all stakeholders, I am confident we can overcome the challenges and create a thriving industrial ecosystem,” Enoh stated.