As Nigeria celebrates its 64th Independence Day, the state of the country’s manufacturing sector has come under critical appraisal.
Mr. George Onafowokan, Managing Director of Coleman Wires and Cables Industries Limited, voiced his concerns during a recent assessment of the sector, calling attention to policy inconsistencies and the rising cost of doing business.
In his analysis, Onafowokan commended the initiatives led by the Chairman, Presidential Fiscal policy and Tax Reforms Committee, Mr. Taiwo Oyedele, but expressed skepticism about how effectively they translate into tangible benefits for manufacturers.
“The reality of doing business in Nigeria is tough. We have fantastic initiatives, but manufacturers are not seeing the instant benefits,” he said. He also criticized the Nigerian Customs Service for its role in fiscal policy, noting that “Customs has become more of a revenue generator rather than focusing on its primary role of physical balancing,” he said.
Onafowokan argued that this revenue-focused approach by the Customs Service has become a major obstacle for manufacturers.
“Customs should be under the Ministry of Finance, not the Central Bank of Nigeria (CBN). It has become an IGR (Internally Generated Revenue) institution, and this is harming the manufacturing sector,” he stated.
He also highlighted the inconsistency in government policies, which he believes is hindering the growth and productivity of the manufacturing industry.
“We have inconsistent policies that are not driving manufacturing processes. We’re killing the industry that generates employment, which is key to the nation’s growth,” Onafowokan said.
Focusing on the broader economic landscape, Onafowokan emphasized that while the government has made strides in easing the process of setting up businesses, the high cost of running those businesses remains a critical issue.
“The real challenge is the cost of doing business. It’s one thing to make it easy to register a business, but how easy is it to actually run it? Forex rates, import duties, multiple taxes, and levies are all driving up costs,” he said.
Reflecting on the history of Nigeria’s business landscape, Onafowokan noted that the country’s earlier post-independence years saw substantial growth in industry, but that momentum was lost during the economic downturn of the 1980s and 1990s.
He credited the return of democracy for some improvements, particularly with incentives from the CBN and the Bank of Industry (BOI), but said the country is still struggling to sustain long-term growth.
“There is no strategic vision that successive governments follow, and that has been detrimental to the industry. Policies are either reversed or abandoned entirely when a new government comes into power. For the industry to grow, we need consistency and sustainability of policies that span across decades,” he stressed.
Onafowokan called for greater government incentives, particularly larger funds for the manufacturing sector, and suggested that these funds should be managed by BOI, not CBN. He expressed disappointment that such incentives were not mentioned in President Tinubu’s recent Independence Day speech.
Concluding his remarks, Onafowokan said the country must remain optimistic but stressed the need for decisive action from the government. “We need to pray that the government moves forward and recognizes the industry as a key driver for the nation. Until then, the challenges manufacturers face will continue to weigh down the potential for growth.”
