CBN Restates Support for Manufacturing Firms in Nigeria

Saturday March 06, 2021 / 04:51 PM / by CBN/ Header Image Credit: TheNews Guru

...Stresses on Import Substitution

TheGovernor, Central Bank of Nigeria (CBN), Mr. Godwin Emefiele has restated theBank's resolve to encourage firms willing to invest in the Nigerianmanufacturing sector in order to grow the economy.

Mr.Emefiele made the pledge in Lagos on Friday, March 5, 2021, while hosting thesigning of the Memorandum of Understanding (MOU) between Procter & Gamble(P&G) and Colori for the local production of its Oral Care products, OralB, as part of efforts towards localization of production in Nigeria. The partnershiprepresents a new investment of $35Million dollars.

Accordingto him, the manufacturing industry in Nigeria remained a key focus of theefforts by the monetary and fiscal authorities towards driving recovery of theNigerian economy, following the downturn due to the impact of the COVID-19pandemic, hence the push for import substitution.

Tomatch its words with action, he said the CBN set up a N1 trillion facility in April 2020, aimed atsupporting growth and expansion of manufacturing firms in Nigeria. He disclosedthat close to N300bn of the amount had so far beendisbursed to 76 manufacturing firms, which would boost local manufacturingacross critical sectors over the next few years.

"Ourefforts have aided the recovery of the manufacturing sector as reflected in thePurchasing Managers Index which shows that the index on manufacturingactivities rose from a low of 41 points in May 2020 to 49.6 points in December2020," Emefiele added.

Whileadmitting that growth remained fragile, the CBN Governor noted that drivingfurther growth of the economy would require that the Bank and the fiscalauthorities continue to support more investments that will enable the growth ofthe manufacturing sector in Nigeria.

Emefieletherefore encouraged multinational firms to emulate Procter and Gamble by consideringthe opportunities that Nigeria offers and begin to set up their manufacturinglines in Nigeria. He also expressed belief that this move would help to enablethe country build a more resilient economy that creates jobs and supportsskills transfers for the nation's growing and youthful population.

Giventhe size of the Nigerian population and market, he asserted that Nigeria offeredsignificant advantages for multinational manufacturing firms that choose toinvest in domesticating their productions lines in Nigeria.

"Ratherthan import goods that can be produced in Nigeria, companies should invest inNigeria," he charged, adding that "We can't afford to continue to rely on amodel that encourages imports of goods and exports of jobs away from Nigeria,as the ramifications will be huge on our economy."

Intheir separate remarks, the P&G Managing Director for Nigeria, Mr. AdilFarhat and the Managing Director of Colori Cosmetics Nigeria, David Fengcommended the CBN and the Governor for being a champion of localization.

Mr.Farhat assured that P&G will continue to partner with the Nigeriangovernment as the company increases its economic and social footprint, insupport of the diversification and localisation objectives of Nigeria.

Feng,on the other hand, said the company aimed at working with localbusinesses to provide a healthier lifestyle for the Nigerian population.