Non-oil exports key to economic stability – MAN

As part of efforts to reshape Nigeria’s economy from oil-based, the Manufacturers Association of Nigeria has advocated for Nigeria to focus on non-oil exports to drive economic growth.

This call was made at the ongoing 36th Annual General Meeting of the MAN Anambra/Ebonyi/Enugu chapter, held in Enugu on Thursday.

The chairman of the association, Ada Chukwudozie, stated that investing in the non-oil sector can significantly improve Nigeria’s foreign exchange earnings and rescue the economy.

Chukwudozie, who stated this in her address, noted that the global landscape is rapidly changing, with factors such as the COVID-19 pandemic, geopolitical tensions, climate change, and technological advancements impacting the economy.

According to her, Nigeria needs to adapt to these changes and prioritise non-oil exports to stimulate economic growth and improve the country’s GDP trend.

By diversifying the economy and reducing dependence on oil, she said Nigeria can achieve increased economic stability and growth.

She said, “The business environment is increasingly volatile, uncertain, complex, and ambiguous (VUCA), driven by geopolitical tensions, technological disruptions, and evolving customer demands.

“Here in Nigeria, our economy has depended heavily on crude oil export for its foreign exchange earnings. With dwindling production of crude oil largely due to insecurity and other factors, the foreign reserve has not been able to sustain the pressure on the dollar due to trade deficits and the minting of more money through ways and means, which has impacted the inflation rate.

“However, the recent deregulation of the energy sector has hit an all-time high, with high interest rates in response to the high MPR rates, as the government keeps trying to adjust the monetary policies to control inflation. This has resulted in the currency being devalued. These challenges fully justify divestments into manufacturing-driven non-oil export initiatives, especially for businesses in the manufacturing sector.”

She called on manufacturers and organisations to be agile, resilient, and forward-thinking, adapt, and innovate to stay ahead, adding that they must be willing to challenge assumptions, experiment with new ideas, and invest in emerging technologies.

The managing director of Keystone Bank, Hassan Imam, in his remarks, called for collaboration between the government, manufacturers, and financial institutions to improve the situation.

“Through initiatives such as targeted government policies, better access to finance, and infrastructure improvements, we can create an environment conducive to growth in manufacturing,” he said.

The chairman on the occasion and Lagos-based businessman, Chief Martin Agbaso, advised manufacturers to add more value by exporting finished products instead of rushing to export only raw materials.