Principles of Economic Prosperity: Prioritizing Local Businesses to Drive National Growth
In the current global economic climate, the importance of supporting and promoting local businesses has become a hot topic of debate. The Manufacturers Association of Nigeria (MAN) and influential figures such as Aliko Dangote recently expressed their firm belief that prioritizing local businesses is key to strengthening the manufacturing sector and driving economic growth in the country.
MAN Managing Director, Segun Ajayi-Kadir, pointed out at the Access Corporate Forum 2024 in Lagos that Nigeria’s manufacturing sector is currently operating at less than 50% of its installed capacity due to the government’s lack of commitment to executing policies in place. Despite repeated pronouncements by successive governments on the importance of fostering local manufacturing, these rhetoric have not been matched by concrete actions to support the growth of this key sector.
Aliko Dangote, Chairman of Dangote Group, stressed the need for government to support local manufacturing, emphasizing that it is far more effective than turning to foreign investment. He stressed that supporting local small businesses is essential to enable them thrive in the face of competition from foreign products. In encouraging domestic investment, Dangote stressed that it is key to attracting foreign investment into the country.
According to Dangote, supporting domestic investment is a major catalyst in attracting foreign investment, stressing that one cannot go without the other. As a concrete example, he cited his recent experience with imported snacks from China, stressing the need to prioritise local products to foster job creation and economic growth within the country.
Finance Minister Wale Edun has acknowledged the challenges of unresolved foreign exchange transactions affecting manufacturers, urging stakeholders, including MAN, to continue engaging with the Central Bank of Nigeria to find solutions. It is clear that the path to sustainable economic prosperity lies in promoting local businesses, supporting domestic entrepreneurs and producing goods and services locally.
It is imperative for Nigeria to place the interests of local businesses at the heart of its economic policies to drive national growth, create jobs and strengthen the social fabric. By promoting local production, the country can not only become more economically self-reliant but also attract sustainable foreign investment and contribute to the long-term prosperity of its citizens.