The Central Bank of Nigeria (CBN), on Friday, restated its resolve to sustain support for firms willing to invest in the Nigerian manufacturing sector, thereby enhancing economic growth.
Hosting the signing of a Memorandum of Understanding (MOU) between Procter & Gamble (P&G) and Colori for the local production of its products- Oral B, CBN Governor, Godwin Emefiele called on multinationals to consider setting up their manufacturing lines in the country.
“Rather than import goods that can be produced in Nigeria, companies should invest in Nigeria. We can’t afford to continue to rely on a model that encourages imports of goods and exports of jobs away from Nigeria, as the ramifications will be huge on our economy,” he stressed.
This, he believes, would help the country build a more resilient economy that creates jobs and supports skills transfers for the nation’s growing and youthful population, given its population and market.
Given these factors, he asserted that Nigeria offered significant advantages for multinational manufacturing firms that choose to invest in domesticating their productions lines in Nigeria, as part of localizing production in the country.
Emefiele said the sector remained a key focus of the efforts by the monetary and fiscal authorities towards driving recovery of the Nigerian economy, following the downturn due to the impact of the COVID-19 pandemic, hence the push for import substitution.
Specifically, he noted that in matching words with action, the CBN set up a N1tr facility in April last year, to support the growth and expansion of manufacturing firms in Nigeria.
Of the amount, he continued, almost N300bn have so far been disbursed to 76 manufacturing firms, which would boost local manufacturing across critical sectors over the next few years.
“Our efforts have aided the recovery of the manufacturing sector as reflected in the Purchasing Managers Index which shows that the index on manufacturing activities rose from a low of 41 points in May 2020 to 49.6 points in December 2020,” Emefiele added.
Although growth remained fragile, he admitted, the CBN Governor noted that driving further growth of the economy would require the continued collaboration with the Federal Government to support more investments that will enable the growth of the manufacturing sector in Nigeria.
Speaking separately, Managing Director of P&G Nigeria, Adil Farhat and his Colori Cosmetics Nigeria counterpart, David Feng, commended the CBN and the Governor for championing
Farhat assured that P&G will continue to partner with the Nigerian government as the company increasesits economic and social footprint, in support of the diversification and localisation objectives of Nigeria.
Feng, on the other hand, said the company aimed at working with local businesses to provide a healthier lifestyle for the Nigerian population.
