The Nigerian Economic Summit Group (NESG) has expressed strong support for the establishment of a stabilisation fund aimed at providing single-digit interest rate loans to the manufacturing sector. This initiative, which aims to help manufacturers refinance their balance sheets, working capital, and raw materials, was endorsed by Dr. Tayo Aduloju, the CEO of NESG, during a media session on Friday.
Aduloju highlighted the importance of industrialisation in Nigeria’s economic growth, emphasizing that it requires concerted efforts to achieve. He stated, “To drive industrialisation, we need two things to happen: first, we must recapitalise for industrialisation. We fully support the manufacturing stabilisation fund, which will provide long-term, low-interest loans to help manufacturers rebuild and expand.”
According to Aduloju, the current contraction in the manufacturing sector is harmful, especially in a labour-intensive industry like manufacturing, where fewer jobs are being created. He urged for a strong push toward industrialisation to reverse this trend and create more employment opportunities.
The NESG’s support for industrialisation aligns with the Minister of State for Industry, Senator Owan Enoh’s recent announcement that a workgroup dedicated to industrialisation would be established before the end of the year. The workgroup, co-chaired by Enoh and the President of the Manufacturing Association of Nigeria, Francis Meshioye, will focus on advancing the country’s industrial revolution.
Aduloju also touched on the government’s recent success in harmonising exchange rates, which he believes has helped boost Nigeria’s foreign reserves and stabilized the foreign exchange market. However, he stressed the ongoing challenge of managing inflation, particularly as the holiday season approaches.
The NESG CEO also emphasized the need for greater investment in Nigeria’s energy sector. He called for financial intervention across the electricity sector, including the recapitalisation of Distribution Companies (DisCos), to improve infrastructure and attract foreign direct investment. Aduloju pointed out that a market-reflective pricing system would be essential for the sector’s growth, urging the government to consider removing some subsidies on tariffs to improve energy supply and generate sufficient revenue for reinvestment in the industry.
