…30% increase in export volumes by 2028

By Yinka Kolawole

The Federal Government is aiming to reduce the costs of trade in Nigeria by 15 percent with the new National Industrial Policy (NIP) unveiled last week, even as it projects that the policy will facilitate 30 percent increase in export volumes by 2028.

The policy document outlined the strategies to stimulate industrial development and strengthen value chains.

“The government seeks to support and facilitate fast-tracking of inter-state road upgrades, logistics hubs and cold-chain corridors to reduce trade costs by at least 15%. Support port modernisation and warehouse finance schemes and PPP arrangements.

“Digital and technological solutions scale nationwide through e-commerce platforms, integrated logistics-management systems, data-driven market-intelligence dashboards and mobile payment solutions, onboarding 25,000 SMEs onto digital trade channels by 2026.

“Appropriate measures will be put in place to effectively promote competitiveness in marketing and distribution through promotion of upstream, midstream and downstream in agro-processing, textiles, leather apparel for garments, footwear and accessories sub-sectors and construction materials, targeting a 30% increase in export volumes by 2028.

“Implement mandatory public procurement of made-in-Nigeria goods and services (under EO003 and the Nigeria First Policy), nationwide consumer awareness campaigns, and retail incentive.

“Establish specialised export-readiness initiatives and training modules in international market, branding, packaging and quality certification to enhance export promotion,” the document stated.

Underscoring the importance of the micro, small and medium enterprises (MSMEs) sector to Nigeria’s industrial landscape, the government plans to promote industrial clusters, expand entrepreneurial training, establish start-up hubs, and strengthen agencies responsible for service delivery to MSMEs.

The policy also proposes accelerating extension services by the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) to help businesses meet standards and improve global competitiveness.

NIP outlined six key objectives, with the first anchored on economic growth and development: “Increase manufacturing contribution to Nigeria’s GDP to 15% by 2030 and 25% by 2035, increase the mineral sector contribution to economic growth and the share of the mining sector in total GDP to 8% by 2030 and 10% by 2035. Broaden and increase the government’s sources of income through increasing manufacturing activities thereby contributing to the $1trillion dollar economy by the year 2030.”

Other objectives are: “Enhance global competitiveness for Nigerian manufactured goods, and diversify Nigeria’s export by increasing export of manufactured products. Expand gainful employment and skills development in the manufacturing sector and promote entrepreneurship and development of technical skills in the manufacturing sector. Encourage the development of innovative financing strategies that will facilitate manufacturers’ easy access to affordable long-term funds; and Industrialisation of local content.” At the launching the policy, President Bola Tinubu, said the success of the policy would be judged by tangible industrial outcomes.

“We will measure success by the number of factories that open their gates at dawn, the jobs created for young men and women, the exports that leave our ports bearing the mark of Nigerian excellence, and the value retained within our domestic economy,” he stated.