The N150-billion bailout for the manufacturing sector is expected to revive the sector and boost the production capacity.
President of the manufacturers association of Nigeria Alhaji Bashir Borodo says the government must address the investment climate in order for the bailout to work.
Borodo says many members of the association are currently out of business, particularly those in the textile sub-sector. ‘The industry generally is not maximising output as expected due to epileptic power supply which constitutes a major impediment to the growth of the sector,’ he adds.
‘We believe that the plan is part of the measures by the government to diversify the economy and increase the contribution of the non-oil economy to the GDP,’ says Borodo.
Manufacturing contributes less than 5% to the gross domestic product and industrial capacity is operating at between 35% and 40% but the sector is growing at close to 10% per annum and forms a large part of the national and regional governments’ economic-recovery plans.