By Naomi Uzor

The Lagos Chamber of Commerce and Industry (LCCI), weekend said the manufacturing sector contributes less than 5 per cent of the Gross Domestic Product (GDP), as against 30 to 40 per cent contribution in some other developing economies, particularly in Asia, adding that the sector is progressively losing relevance in the economy.

Speaking at the quarterly business luncheon of the LCCI, the President of LCCI, Otunba Femi Deru said the manufacturing sector contributes less than 5 per cent of the GDP and that the reality is that the economy has transformed into a trading and consuming economy, not one that produces.

He said the importance of the manufacturing sector is underscored by the fact that it has high potential to create lots of jobs, improve technology acquisition and alleviate poverty, especially at the level of small and medium industries, and also encourages the use of local raw materials.

The United Nations Industrial Development Organisation (UNIDO) Representative & Director, regional office in Nigeria, Dr. Patrick Kormawa, said “Nigeria’s aim to become an industrialised country in the next two decades and achieve fast, sustained and equitable growth, is not a mirage.”

According to him, there is no single key or bullet to unlocking Nigeria’s potential, adding that what Nigeria urgently needs are policies and institutions to foster rapid business development across key priority sectors.

“This means targeted policies and strategies applied consistently to promote enterprise revolution that accelerates sustainable growth while simultaneously helping alleviate poverty, create jobs and improve living standards,” he said.

According to him, Nigeria must continue along the path of democratisation and modernise its institutions to sustain the gains made so far and to break new grounds, economic and social stability and well developed banking sector.

“We have seen progress in the reform of the banking sector spearheaded by the CBN. Strong public-private sector partnership with the private sector as the engine of growth and nurturing an entrepreneurial culture is the way forward.

Equally important is a crop of visionary political elites and business men and women who are committed to achieving industrial development. These should be able to capitalise and take advantage of opportunities in the domestic, regional and from the global economy (e.g. preferential market access).

They must be supported technically to know about the levels of incentives and public investments that are necessary for private investments to take off and ensure the long-term diversification of the economy and its integration in the global economy. This must be complemented by economic diplomacy,” he said.