Nigerian manufacturers are expressing concern over what they perceive as a policy bias towards imports, as they accuse banks and government policies of favoring foreign goods over locally produced ones. According to an independent report in the Independent Newspaper Nigeria, this bias is contributing to a difficult operating environment for local manufacturers.
“The high cost of borrowing and restrictions on access to foreign exchange have made it extremely difficult for us to compete with imported goods,” said Johnson Emmanuel, the CEO of a local textile company.
Emmanuel’s sentiments were echoed by other manufacturers who argued that the high interest rates charged by banks for loans make it prohibitively expensive for them to invest in new machinery or raw materials. They also pointed out that the government’s focus on import substitution has not translated into meaningful support for local manufacturers.
The manufacturers’ complaints come at a time when the Nigerian government is trying to boost local content in various sectors, including manufacturing, agriculture, and technology. However, the lack of adequate infrastructure, high cost of production, and unfavorable policies have continued to hinder the growth of local industries.
The Nigerian Manufacturers Association (NMA) has called on the government to address the concerns raised by manufacturers and create a level playing field for local and foreign businesses. The association also urged banks to review their lending policies and provide more affordable loans to local manufacturers.
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