A paradigm shift from Nigeria’s over dependence on imported raw materials and products to local raw materials utilisation has never been this compelling. With the importation of raw materials and products projected to gulp about N36 billion this year alone, if nothing is done to halt the huge capital flight, experts and industry operators believe that the time has come for Nigeria to double efforts at encouraging local sourcing of raw materials and products.
According to them, turning to local raw materials utilisation and backward integration in areas where Nigeria has comparative and competitive advantages holds the key to create jobs and reboot the economy post COVID-19. Already, developments in the local and global manufacturing industry underscore the need for the economic managers, working with real sector operators, particularly manufacturers, to look inwards and source raw materials locally.
For instance, the Manufacturers Association of Nigeria’s (MAN’s) Executive Summary, which reviewed the economy in the second half of last year, said the utilisation of local raw materials in the manufacturing sector increased marginally in the second half of 2019 to 64 per cent, from 63.7 per cent recorded in the corresponding half of 2018. This represents 0.3 percentage point increase over the period.