BY CHINYERE OBIORA, LAGOS – The Central Bank of Nigeria (CBN) says there is no relenting in its resolve to encourage firms with vested interest in the Nigerian manufacturing sector as part of efforts at growing the Nigerian economy.
CBN Governor, Mr Godwin Emefiele, gave the assurance in Lagos at weekend while hosting the signing of the Memorandum of Understanding (MOU) between Procter & Gamble (P&G) and Colori for the local production of its Oral Care products, Oral B, in Nigeria.
The partnership represents a new investment deal to the tune of 35 million dollars
According to the CBN Governor, Mr Godwin Emefiele, the monetary and fiscal authorities consider Nigeria’s manufacturing industry as key in the efforts at driving economic recovery following global downturn and adverse impact of the COVID-19 pandemic.
He said support for the sector is also receiving a major boost with the apex bank’s push for import substitution.
Emefiele said to match its words with action, the CBN set up a N1 trillion facility in April 2020, aimed at supporting growth and expansion of manufacturing firms in Nigeria, adding that about N300 billion of the amount has so far been disbursed to 76 manufacturing firms to boost local production 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,” he said.
The CBN Governor, who admitted that growth remained fragile, said driving further economic growth would require the apex Bank and the fiscal authorities continuously support more investments that will enable the manufacturing sector to grow in Nigeria.
He therefore urged multinational firms to emulate Procter and Gamble by considering the opportunities that Nigeria offers and set up their manufacturing lines in the country.
Emiefiele also said this move would enable Nigeria build a more resilient economy that creates jobs and supports skills transfers for the nation’s growing and youthful population.
He stated that with its population and market size, Nigeria offers significant advantages for multinational manufacturing firms that choose to invest in domesticating their productions lines within the country.
The CBN Governor said; “Rather than import goods that can be produced locally, companies should invest in Nigeria,” adding; “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.”
In their separate remarks, the P&G Managing Director for Nigeria, Mr. Adil Farhat and the Managing Director of Colori Cosmetics Nigeria, David Feng praised Emefiele and the CBN for championing the localization initiative.
Mr Farhat assured that P&G will continue to partner with the Nigerian government as the company increases its economic and social footprint, in support of the diversification and localisation objectives of Nigeria.
For Mr Feng, Colori Cosmetics Nigeria is focused on working with local businesses to provide a healthier lifestyle for the Nigerian population.
