Nigeria may have finally exited recession after five consecutive quarters of economic lull, but the campaign for increased “Made-in-Nigeria”, both in terms of production and patronage cannot be allowed to wane.
The Nigeria Economic Summit Group (NESG) Macroeconomic outlook for 2017, noted that; Made in Nigeria symbolises the improvement of capacities and capabilities within Nigeria, creating an economy that is productive and competitive on a global scale. The success or otherwise of Nigeria’s goal to diversify its economy and build a competitive economy depends, to a large extent, on the sustainability of improved domestic productive capacity in both the real and service sector. No viable economy outgrows its ability to generate foreign exchange through export of goods and service.
Foreign exchange has been a major component in discourse around Made-in-Nigeria, as the naira has weakened substantially over the past year. The Central Bank of Nigeria (CBN) has of course, had to take decisions which were in its estimation, going to save the naira from continuous devaluation. Notable among these was banning of 41 items from importation into Nigeria, as part of moves to encourage local manufacturing. By banning Nigerian companies from buying dollars for the banned items which included commodities as basic as palm oil and tomato, it was anticipated that local production will be spurred.
The benefits of sustaining the production and patronage of Made-in-Nigeria alternatives cannot be overemphasised.
As NESG observed, one justification for Nigeria to promote “Made in Nigeria”, by improving the business environment lies in the fact that any economic recovery achieved outside the scope of supporting the productive base of the economy will not be sustainable. It would only depict a typical case of postponing the “evil day”. Nigeria therefore must realise that looking inward remains the sustainable way to create jobs, enhance foreign exchange earnings through the increase in net-exports and ultimately sustain Nigeria’s exit from the economic recession. It is undoubtedly true, that a strong productive sector protects the economy from unforeseen external shocks and, therefore, engenders sustainable economic growth through job creation and value-addition.
Nigeria’s quest towards economic recovery in 2017 and beyond will depend largely on how it supports the production of strategic goods and services on a large scale to meet local and exports markets needs.
Furthermore, buying made in Nigeria goods will boost employment generation in the country, as the multiplier effect of patronising local products is the demand of labour. It will also help conserve the nation’s foreign reserve and strengthen the naira against the dollar, thereby making the country financially healthy and self-dependent.
For Nigeria’s economy to become vibrant, it is important to boost small and medium enterprises. Increased production and patronage of made in Nigeria goods will boost the nation’s Gross Domestic Product (GDP), and perhaps, the country’s per capita income.
