MAN DG Advocates Collaboration with Oil, Gas Sector
The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has called for collaboration between the manufacturing industry and the oil and gas sector to boost Nigeria’s economy.
Speaking at the Nigerian Oil and Gas Opportunity Fair (NOGOF), Ajayi-Kadir emphasized the need for the two sectors to improve their contribution to the country’s GDP through collaboration.
He highlighted the importance of an effective oil and gas industry in supplying the energy needed by the manufacturing sector and supporting industries that rely on them for raw materials. Ajayi-Kadir also mentioned the challenge of power supply, which is a major issue facing manufacturers in Nigeria.
He explained that the lack of power supply has led manufacturers to resort to alternative sources of power, making them less competitive and hindering export ratings. Ajayi-Kadir suggested that overcoming this challenge would create a new industrial atmosphere and attract newcomers to the manufacturing industry.
Furthermore, the DG of MAN mentioned other issues such as multiple taxes, insecurity in certain regions, and escalating excise duties that need to be addressed for the manufacturing sector to thrive.
“I think this is a very important and strategic meeting coming at a time when the oil and gas sector and manufacturing sector are looking at how they can improve on their contribution to the GDP. As I mentioned, both of us are contributing less than 10 per cent to the GDP and the economy is not going to advance and industrialize when these two major sectors are contributing below 10 per cent.
“So, if you are able to have an effective oil and gas industry that supplies the energy that is needed, if you have an oil and gas industry that supports the industries that rely on them for raw materials, you are going to make them more competitive and allow them to enjoy the advantage of the local economy.
“And that is what countries are looking forward to. COVID-19 has shown that countries look inward in times of crisis and countries look inward become resilient and develop the capacity to be self-sufficient. If these two sectors are integrated and they promote our local comparative advantage, it is a good step in the right direction.
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“Their synergy would also keep us in good steps to be able to make advances and market penetration in the West African sub-region, in the African sub-region, and even outside of the continent. I think that the meeting is strategic and being facilitated by the Nigerian Content Development and Monitoring Board, NCDMB is a thing of joy because they have the resources, and capacity to marshal the attention of the oil and gas sector to support the industrial sector and for the industrial sector to be able to supply the needs of the oil and gas.”
