Manufacturers target 10.6 pct growth, 15m new jobs in 2020

Nigeria’s manufacturing sector is targeting to grow by 10.6 per cent and create over 15 million new jobs to solve the lingering unemployment problem in the country, if the Federal Government’s Economic Recovery and Growth Plan (ERGP) is implemented to the letter.

Latest statistics have it that the manufacturing sector is presently growing at an average growth of 8.5 per cent but that this would peak at 10.6 per cent by 2020 leading to the creation of the new 15 million jobs.

This was one of the important tasks the ERGP recently launched by the Muhammadu Buhari administration aims to achieve in its medium term plan.

According to the Minister of Budget and National Planning, Udoma Udo Udoma, the ambitious ERGP, if well executed, will aid manufacturing sector average growth of 8.5 per cent, peaking at 10.6 per cent by 2020, while the real GDP growth of 4.6 per cent over the Plan period will increase to 7 per cent rate by 2020.

The creation of 15 million new jobs by 2020 is also expected to reduce the unemployment rate from 13.9 per cent in Q3 2016 to 11.23 per cent by 2020.

This may not be an ambitious projection as the recent Manufacturers Association of Nigeria’s (MAN)’s review of the last quarter of 2016 revealed that an estimated 1.63 million historical cumulative jobs were created in the manufacturing sector at the end of 2016, based on the information gathered from the various surveys conducted by MAN over the review period.

From MAN’s statistics, a total of 10,061 manufacturing jobs were created in the second half 2016 as against 9,393 jobs created in the corresponding half of 2015, thus indicating an increase of 668 jobs over the period.

Food, Beverage and Tobacco sectoral group was reported to have accounted for most of the jobs created in the manufacturing sector as it created 2,947 jobs in the second half of 2016.

A total of 4,408 jobs were reportedly lost in the period under review as against 12,400 jobs lost in the preceding half, thereby indicating 7,992 decline over the period.

The Minister said the agricultural sector with average growth of 6.9 per cent over the Plan period would support the effort through self-sufficiency in rice and wheat in 2018 and 2020, respectively.

The government is however, optimistic that the operational electricity capacity would grow by at least 10GW by 2020 to boost the real sector and other job creating efforts of the citizens.

Udoma said the projected 60 per cent reduction in imports of refined petroleum products by 2018 and becoming a net exporter of refined crude by 2020 was part of the agenda, which government believes would create more jobs for Nigerians. He added that the capital provisions and initiatives in the 2017 Budget are directed at projects reflecting the priorities of the ERGP towards job creation.

“For instance, N46 billion as government’s contribution to the development, or expansion, of Special Economic Zones in the country’s six geo-political zones to drive manufacturing and exports; N6 billion for the revival of the Export-Expansion Grant in the form of tax credits; N15 billion to re-position our development finance institutions, namely the Bank of Industry (BoI) and the Bank of Agriculture (BoA), to support Micro, Small and Medium Enterprises (MSMEs); N500 billion for the Social Intervention Programmes; N148 billion for counterpart funding for various railway modernisation projects; over 65 roads and bridges construction and rehabilitation projects across the six geo-political zones of the country; N40 billion service-wide provision to settle reconciled outstanding electricity bills of Federal Government institutions as part of the strategy to revamp the ailing power sector,” he said.

He said the aim of the ERGP of the present administration is to change Nigeria from a nation with high import dependence to one that makes the products it consumes; from a nation that relies on a single commodity for survival to one that runs on multiple engines of growth, such as agriculture, manufacturing, construction, solid minerals and services.

“Our aim is to change Nigeria from a nation of consumers to a nation of producers. As Mr. President has said, the ERGP is this administration’s blueprint at building a new Nigeria where we grow what we eat, consume what we make and produce what we use,” he stated.

The Minister said government agencies will work with the private sector to support research with a view to developing high quality indigenous products and technologies, noting that government is committed to supporting made-in-Nigeria goods and services.

He said the Acting President has also issued an Executive Order on support for local content in public procurement by MDAs.

Udoma said this will support local production as well as consumption and patronage to increase employment opportunities for the unemployed youths.

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