Nigeria: Manufacturers Seek Government Patronage in Five Preferred Sectors

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Manufacturers Association of Nigeria (MAN) has adopted five areas of production for special patronage by the public sector led by the federal government.

This was announced by MAN president, Dr. Frank  Udemba Jacobs, at a special press briefing on ‘MAN Buy Made-In-Nigeria Products Campaign’, in Lagos.

Dr. Jacobs said MAN believes that the quest of the Federal Government to promote Made-in-Nigeria goods can be best achieved if the Executive Order on the patronage of local products is based on Sector-Specific Margins of Preferences (MOP).

“The beauty of adopting MOP is the fact that it recognizes the peculiarities within each sector and defines the prosperity or otherwise of operators in these sectors.

“In the first phase of the advocacy campaign, the following five MAN sectors were selected: Textiles, wearing apparel, carpet, leather/leather footwear; Chemical and Pharmaceuticals; Pulp, Paper & Paper Products, Printing & Publishing; Basic metal, Iron and steel and fabricated metal products and Wood & Wood Products industry,” MAN president said.

Dr. Jacobs further explained that the selection was based on the outcome of studies commissioned by MAN and the computed sectoral MOPs with special consideration for SMEs, based on the perceived impacts the implementation of sector-specific MOPs will have on the growth of manufacturing output; additional investments; income; employment; as well as government tax revenue.

“The product lines of the aforementioned sectors are largely required in the fashion, military, para-military, health, education, interior décor, furniture and assembly industries as well as for electricity distribution infrastructure, road and housing construction materials to mention a few. These products are required by contractors, suppliers and vendors registered with the relevant Ministries, Departments and Agencies of Government.

“Imagine that the Government patronizes local textile manufacturers for uniforms required by the Ministry of Interior, Defence, Health, Education, the National Youth Service Corps and the Nigeria Police Force, the impact on manufacturing output, employment and wealth creation would be overwhelming, with significant trickle-down effects on every facet of the economy,” he said.

He added that the other manufacturing sectors will be added to the MOP as the advocacy campaign progresses.

He stated that to lead by example, MAN members have resolved to deepen intra-membership patronage among the membership by first sourcing inputs from one another before contemplating import.

He also disclosed that the result of an exhaustive diagnosis undertaken prior to the commencement of this advocacy campaign by MAN and ENABLE2, of some of the challenges of local manufacturers in Nigeria, showed that the manufacturing sector has huge inventory of unsold finished products occasioned partly by poor patronage of locally manufactured products by the Government, backlashes from smuggling and counterfeiting activities as well as the general apathy of the consuming public towards locally produced products, laced with the high penchant for foreign goods.

MAN president, however, appreciated the Federal Government for support the advocacy, notably, through the amendment of the Bureau for Public Procurement (BPP) Act by the National Assembly aimed at encouraging the patronage of Nigerian products by Government establishments as well as the Executive Order 003 on Local Content and promotion of patronage of Made-in-Nigeria products by the Government which gave 40% participation rate for MSMEs in public procurement in Nigeria is exemplary.

“While commending the Federal Government for this support, I would like to solicit further patronage through procurement value chains and the effective implementation of the Executive Order, using the Margins of Preference of at least 35% in favour of products that are made locally.  In the same vein, I implore all Nigerians to keep our factories running and our teeming youths gainfully employed by patronising Nigerian products and dropping the bloated appetite for imported products,” Dr. Jacobs said.


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