Tinubu's Inaugural Speech Holds Up a Beacon of Hope for Local Manufacturers

For years, Nigerian local manufacturers have been facing an uphill task trying to thrive. There seems to be insurmountable challenges making local production seemingly a non viable venture. Some of the challenges facing Nigerian manufacturers are:

1. Near nonexistent power supply that forces them to rely on diesel generators, which increases their production costs and reduces their competitiveness.

2. Inadequate funding that limits their access to credit, working capital, and investment opportunities.

3. Insecurity that disrupts their operations, exposes them to risks of theft, vandalism, and sabotage, and affects their supply chains and distribution networks.

4. Poor infrastructure that hampers their transportation, communication, and logistics.

5. Irregular taxes that increase their tax burden and create uncertainty and complexity in their compliance.

6. Poor business development strategies that affect their product quality, innovation, marketing, and customer satisfaction.

7. Foreign exchange restrictions that limit their ability to import raw materials, machinery, and spare parts, and increase their costs due to exchange rate fluctuations.

8. Local content requirements that impose sourcing mandates and capacity building targets on some sectors such as oil and gas and ICT.

9. Unfair competition and dumping that expose them to cheaper and sometimes substandard imports that undermine their market share and profitability.

According to the full text of his inaugural address, President Tinubu promised good for local manufacturers by:

1. Reducing the cost of doing business by improving infrastructure, power supply, transportation and security.

2. Promoting a conducive business environment by streamlining regulations, reducing bureaucracy and corruption, and enhancing access to credit and markets.

3. Supporting innovation and entrepreneurship by investing in education, science, technology and research, and creating incentives for start-ups and small businesses.

4. Encouraging local content and value addition by implementing policies that favour domestic production, processing and consumption of Nigerian goods and services, and protecting them from unfair competition and dumping.

5. Boosting export diversification and competitiveness by expanding trade relations with regional and global partners, improving product quality and standards, and providing incentives for exporters.

These are some of the ways that President Tinubu’s inaugural address offers a beacon of hope for Nigerian manufacturers.