As Nigeria celebrates its 65th year of independence, business leaders and entrepreneurs are calling on the government to focus on its “Nigeria First” approach, enhance reforms, and establish a supportive atmosphere. They caution that without domestic manufacturing, investor-friendly changes, and stable policies, the current indicators of economic steadiness could be unstable.
Organized private sector members and local business owners have called on the Federal Government to implement its Nigeria First policy, intensify reforms, and establish a supportive environment to reduce the cost of conducting business as the nation marks its 65th independence day on Wednesday.
Speaking withThe PUNCH,They cautioned that if the government did not focus on domestic manufacturing, investor-friendly changes, and stable policies, Nigeria’s economic growth would continue to be weak even with the current indications of stability.
The head of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, stated that the nation has progressed in industrial development since 1960 but still hasn’t maximized its capabilities. He praised the Nigeria First initiative as the most recent and effective economic strategy and criticized the inadequate administration of the Structural Adjustment Programme, launched in 1986, for causing numerous economic difficulties in the country.
The best approach in recent times should be the Nigeria First policy,” Ajayi-Kadir stated. “You cannot allow a scenario where contractors choose to use foreign materials for government projects. It is Nigeria’s money and should be used for Nigerian goods.
MAN’s DG urged the government to show leadership by purchasing Nigerian-made products. “If legislators, military and paramilitary organizations, and contractors support locally produced goods, we can increase capacity utilization from the present 55 percent to at least 80 percent. We have trillions of Naira allocated annually. How are we using it? There needs to be a requirement, along with penalties for not following through. The government is the largest consumer and must set an example,” he further stated.
Ajayi-Kadir criticized the poorly executed SAP for “exposing our economy to unfair competition from foreign products.” He characterized the policy from the military era as establishing a trend of removing all control from Nigerian businesses.
He stated, “The SAP could have been a beneficial policy, but it was poorly implemented. It brought in numerous elements, including corruption, and it simply wasn’t carried out effectively. The private sector, which was expected to take the lead, was mismanaged, and we experienced an inflow of foreign investment that did not align with our development goals.”
Ajayi-Kadir stated that Nigeria has reached a point where diversifying the economy, promoting export-driven growth, and expanding the manufacturing sector have become the government’s priorities. “If the government maintains the rate of reforms they are implementing, without any setbacks, and regulatory bodies back the government’s goals without hindering development, we will witness significant progress in our path,” he further mentioned.
He emphasized that electricity continued to be the main obstacle for manufacturers, stating that the cost of power made up as much as 40 percent of production expenses. “The primary issue is power. It is costly and unstable. Alternative energy options are not affordable either. We also encounter difficulties with logistics, insecurity, and various taxes. These obstacles increase costs and reduce competitiveness,” he mentioned.
Ajayi-Kadir also warned about what he called “policy flip-flops” that could deter investors. He highlighted recent discussions regarding new tax stamps and charges. “These actions are unnecessary, damaging, and ineffective. The emphasis should be on maintaining consistent policies, reducing waste, and establishing incentives that encourage investment and boost local manufacturing,” he stated.
Ajayi-Kadir predicted that within a decade, through effective taxation and the promotion of Nigerian products, Nigeria could have addressed its major limitations. “We anticipate increasing the manufacturing sector’s contribution to Gross Domestic Product to between 25 and 30 per cent. That is when Nigerians will truly benefit from industrialization, leading to improved living standards.”
In the same way, Gabriel Idahosa, the President of the Lagos Chamber of Commerce and Industry, referred to the 65th anniversary as a time for serious consideration. He recognized certain indicators of stability but emphasized that further actions are required.
He stated, “The economy achieved a 4.23 per cent GDP growth in the second quarter, inflation has dropped to 20.12 per cent, and foreign reserves exceed $42 billion. These are positive developments. However, this achievement is not solely about celebrating statistics; it’s about questioning whether businesses and families are genuinely better off. We require structural reforms that reduce the cost of operating businesses, focus on infrastructure development, speed up industrialization, and maintain consistent policies.”
Idahosa mentioned that companies remain cautious about the uncertainty related to the upcoming tax system, which is scheduled to begin in 2026. “The government needs to guarantee a clear implementation of these tax regulations and prevent the creation of compliance challenges that could hinder Small and Medium Enterprises,” he stated.
He also called on the government to enhance local content regulations, especially within the oil and gas industry, and to promote agro-processing in order to generate employment. “Nigeria First should involve supporting Nigerian products, implementing local content requirements throughout various sectors, and developing supply chains that keep value within the country,” he stated. Outside of corporate meetings, local business owners described the challenges they face on a daily basis.
SMEs lament
The PUNCHLearned from Lagos’ markets about the decline of businesses over the years. The traders did not embrace the symbols of Nigeria at 65; they carried their experiences on their faces, as they expressed sadness over reduced buying power, high taxes, and challenging import conditions.
The Managing Director of the Ikeja-based Tiffany-Glenn Boutique, Bolade Ajatta, reminisced about a time when her business involved consistent travel across different countries. That is no longer the situation. She said, “I used to take $3,000 overseas. I would complete my purchases in Dubai before heading to Turkey. Now, I can’t even finish $3,000 in Dubai. Back then, when I took $1,000 to Vietnam, I could fill half a container.”
Ajatta maintained that those times were distinct. She has not embarked on any business trips to other countries since the administration of President Muhammadu Buhari. She mentioned that currently, the shelves in her store no longer overflow with merchandise.
Consumers who previously bought three or four pieces of clothing now think twice before purchasing even one. “Even those who are looking to buy, the income they make isn’t enough for housing costs before they consider buying clothes,” she says, her tone filled with disbelief at how swiftly aspirations have become fragile.
Across the street, an authorized BYC franchisee, Blessing Ibe, expressed concern over high tariffs and restrictions on importing cotton goods. She stated that her products are daily necessities: undershirts, undergarments, and items essential for a modest lifestyle. However, these items are not selling in the market. “A single undershirt costs N5,000 and above,” she explained, “and most people can’t afford it,” she said with sorrow. “Previously, someone would come and buy N1,000 or N2,000 worth. Now, you might see just one or two pieces. There’s no money circulating.”
She attributed the devalued naira to the increasing value of the dollar and the heavy tariffs at Nigerian ports. “If they lower the taxes on imported goods, businesses will thrive. However, currently, people concentrate on food because it is extremely expensive.”
For Alhaji Shoe, a shoe vendor at Ikeja market, food, which was once considered a given, has now become the harshest reflection of the downturn. He stated, “A meal we used to pay N300 for now costs N2,500. A cylinder of gas that once cost N3,500 is now N16,000. What am I really celebrating? I’m celebrating starvation along with struggle in Nigeria.”
His store, which used to cost N50,000 to rent, now amounts to N200,000 annually. He expressed sorrow over having to transport his inventory across borders while being watched by wary customs officials. He mentioned that his products were frequently confiscated before they could be displayed on his shelves. “They claim we should support Nigerians. How many of the influential individuals are wearing locally-made shoes? Even the customs officers who hassle me are wearing imported shoes,” he exclaimed.
Small and medium enterprises share one common narrative: the reduction of economic opportunities. Ajatta mentioned children departing the country in pursuit of improved living conditions. Ibe questioned out loud who is responsible for growing Nigeria’s cotton. Alhaji Shoe reminisced about a time when most families could afford kerosene stoves in their kitchens, before even that became unattainable for ordinary households.
Provided by SyndiGate Media Inc. (Syndigate.info).
