By Meletus EZE
Mr John Coumantaros, Chairman, Flour Mills Nigeria (FMN), says Nigeria needs to continue to implement reforms that will attract strategic investments to the agro-processing and manufacturing sectors to ensure a sustainable, broad-based economic growth.
Coumantaros, represented by Paul Gbedebo, Group Managing Director, FMN, said this on Tuesday in Lagos during the Nigerian Manufacturing and Equipment Expo (NME) and Nigerian Raw Materials Expo (NIRAM).
TBI Africa said that the News Agency of Nigeria (NAN) reports that the event was co-hosted by the Manufacturers Association of Nigeria (MAN) and Raw Materials Research and Development Council (RMRDC).
The event organised by Clarion Event West Africa had the theme: “Optimising the value chain in the manufacturing sector to ensure sustainable growth and competitiveness.”
Coumantaros said he believed a lot of costs could be saved to encourage manufacturing competitiveness through optimisation of the value chains.
He noted that provision of enabling infrastructure, good governance and supporting policies was the foundational step to drive optimisation and competitiveness in the sector.
According to him, initiatives to improve optimal value chain performance are: developing sectoral value chain policy, and creation of a fast-track platform that provides access to trade and financial incentives, data, policy formulation, capacity building and markets for targeted sectors.
Coumantaros stressed the need to liaise with key players in various sectors on a series of policies, incentives and penalties that de-risk the cost of doing business by manufacturers.
“Whether it is in the manner in which they procure their raw materials and machinery or how they get their finished goods from the factories to the final consumer.
“It is also worth pointing out that access to longer-term lower interest financing is critical to investing in value chains that have a longer gestation period.
“So, the efforts, particularly of developmental financial institutions need to be sustained,” he said.
He advised manufacturers on their part to ensure that they not only abide by the rules of the game, particularly when incentives were offered, but to also invest in developing local capacity and talent pool that would make their investments sustainable.
According to him, optimising manufacturing value chain will promote the development of local industries – particularly Small and Medium Enterprises (SMEs) and create economic linkages between Agriculture and Industry.
He said it would also build local capacity, capabilities and technologies, boost employment, minimise capital flight, engender foreign exchange stability and ultimately promote sustainable economic growth.
Mr Joseph Oru, Event Manager, Clarion Events West Africa, organiser of NME/NIRAM, said the manufacturing sector played a significant role in economic development.
He noted that industrialisation acted as a catalyst that accelerated the rate of transformation and diversification of economies, saying that developing the manufacturing sector would move the country towards inclusive growth.—-NAN
