The Call for a Stronger Nigeria First Policy
As Nigeria commemorates its 65th anniversary of independence, the private sector is emphasizing the need for the government to prioritize the “Nigeria First” policy. Business leaders and entrepreneurs are urging the government to deepen reforms and create an environment that supports local production, investor-friendly policies, and consistent economic strategies. They warn that without these measures, the recent signs of economic stability may not be sustainable.
The Manufacturers Association of Nigeria (MAN) has been vocal in its calls for action. Segun Ajayi-Kadir, the Director-General of MAN, highlighted the importance of the Nigeria First policy as a crucial economic strategy. He criticized the poor implementation of the Structural Adjustment Programme (SAP) introduced in 1986, which he believes contributed significantly to the country’s economic challenges.
Ajayi-Kadir emphasized that the government should lead by example by purchasing Nigerian goods. He argued that if government agencies, military units, and contractors support local products, capacity utilization could increase from the current 55% to at least 80%. He stressed that the government, being the largest spender, must demonstrate leadership in this regard.
Challenges Facing the Manufacturing Sector
Despite the progress made since 1960, Ajayi-Kadir pointed out that Nigeria still has untapped potential. He noted that electricity remains the biggest challenge for manufacturers, with power costs accounting for up to 40% of production expenses. Other issues include high logistics costs, insecurity, and multiple taxation, all of which hinder competitiveness.
He also warned against “policy somersaults” that could deter investors. Recent debates over new tax stamps and levies were seen as unnecessary and counterproductive. Ajayi-Kadir urged the government to focus on policy consistency, reducing waste, and creating incentives that attract investment and boost local production.
Looking ahead, Ajayi-Kadir projected that with proper tax reforms and the implementation of the Nigeria First policy, Nigeria could overcome its constraints within the next decade. He envisioned the manufacturing sector contributing 25-30% to the GDP, leading to improved living standards for Nigerians.
A Sober Reflection on Economic Progress
Gabriel Idahosa, President of the Lagos Chamber of Commerce and Industry, echoed similar sentiments. He acknowledged some positive economic indicators, such as a 4.23% GDP growth in the second quarter, easing inflation, and external reserves exceeding $42 billion. However, he stressed that true progress requires structural reforms that ease the cost of doing business, prioritize infrastructure investments, and ensure policy consistency.
Idahosa expressed concern about the uncertainty surrounding the new tax regime set to take effect in 2026. He called for a transparent rollout of these laws to avoid creating compliance burdens for small and medium enterprises (SMEs). He also urged the government to strengthen local content laws, particularly in the oil and gas sector, and to support agro-processing to generate employment.
The Struggles of Small Businesses
Beyond the boardrooms, local entrepreneurs shared their struggles. SMEs have faced significant challenges, including declining purchasing power, high import duties, and a lack of market demand. Bolade Ajatta, Managing Director of Tiffany-Glenn Boutique in Ikeja, recalled the days when she could travel abroad for business with large sums of money. Today, her shop no longer stocks the same variety of goods, and customers are hesitant to buy even one item.
Blessing Ibe, an authorized BYC franchisee, lamented the high duties on imported cotton products, making basic necessities unaffordable for many. She emphasized that reducing import duties could revitalize the market. Alhaji Shoe, a footwear seller, described how food prices have skyrocketed, making it difficult for families to afford even basic needs.
A Nation in Transition
The stories of these entrepreneurs paint a picture of a nation grappling with economic decline. Ajatta spoke of children leaving the country in search of better opportunities, while Ibe questioned who is cultivating Nigeria’s cotton. Alhaji Shoe reflected on the past when families could afford kerosene stoves, a luxury now out of reach for many.
These narratives highlight the shrinking economic possibilities for ordinary Nigerians. As the country marks its 65th anniversary, the call for meaningful reforms and a stronger commitment to the Nigeria First policy remains urgent. Only through sustained efforts can Nigeria unlock its full potential and ensure a brighter future for all its citizens.
