Boosting industrial manufacturing to accelerate economic growth and development in Nigeria, says African Development Bank director
The President of the African Development Bank Group (AfDB.org), Dr Akinwumi A. Adesina, said low levels of industrial manufacturing hamper economic growth and development in Nigeria and many other African countries.
He said Nigeria needs to accelerate its manufacturing sector through integration and rapid progression in global and regional value chains where it has a comparative advantage. Adesina was speaking at a lecture titled Overcoming Compelling Manufacturing Constraints for Intra-Regional Trade, which he delivered at the inaugural edition of the Adeola Odutola lecture series on Tuesday in Abuja. The series is organized by the Manufacturers Association of Nigeria.
The head of the African Development Bank said: “The continent has abundant natural resources, oil, gas, minerals, metals, agricultural and forestry products and the blue economy. But tragically and ironically, Africa’s massive natural resources have not translated into wealth.
He added: “The low level of industrial manufacturing is at the heart of the slow structural transformation of African economies,” and represented a race to the bottom characterized by increasing poverty, job exports, volatile commodity prices. and dependence on imports.
Adesina recommended several policies, including the creation of industrial digital skills academies to retrain and retool workers for the jobs of the future. He said deepening domestic capital markets would allow companies to access the equity finance they need to grow their businesses. He asserted that there should also be massive investments in gas, hydroelectric resources and large-scale solar power systems to ensure a stable baseline power supply for the industry.
He called on the Nigerian government to actively tackle infrastructure bottlenecks, which he said hamper the manufacturing sector.
He also noted the existence of potentially catalytic external factors such as the African Continental Free Trade Area, which he said represents a huge opportunity for Nigeria to drive an export-oriented industrial manufacturing path.
Speaking on behalf of President Muhammadu Buhari, Secretary of the Government, Boss Mustapha, hailed the conference, calling it “scholarly and stimulating”, and said the government would certainly consider the proposed solutions.
“The challenge that Dr Adesina has given us today regarding building an efficient and productive manufacturing sector is a challenge that we should take seriously in formulating policies that will lead to accelerated growth and diversification of our business. economy, ”said Mustapha.
The President of the Manufacturers Association of Nigeria, Mansur Ahmed, praised Adesina, both for his work as the former Nigerian Minister of Agriculture and for his current role as head of the African Development Bank.
To date, the African Development Bank has provided $ 1.73 billion in low interest credit lines to Nigerian financial institutions. In the energy sector, it provided $ 200 million for the Nigeria Electrification Project, which aims to fill the country’s access gaps. The Bank invested an additional $ 210 million in the Nigeria Transmission project to strengthen grid electricity evacuation and regional interconnection. In addition, the African Development Bank’s Small and Medium Enterprise Finance Facility supports small and medium enterprises in Nigeria.
Dr Adesina’s speech can be accessed here: https://bit.ly/3vUTO0F
Distributed by APO Group on behalf of the African Development Bank Group (AfDB).
Communication and External Relations Department
African development bank
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