Over the years, the manufacturers have been forced to factor into their business matrices the cost of doing business in Nigeria. They take into consideration the unavailability of constant electricity; they also build into their business models high interest rates charged by the banks that make credit unattainable. In addition to this, they further recognize the rear absence of adequate distribution channels and a top – grade transportation network. In doing that, additional costs are transferred to consumers that use their goods and services.
But what manufacturers never factor in the course of doing business are indiscriminate fiscal policies and an unpredictable macro-economic regime and of lately the gross insecurity in the country (boko haram, kidnapping). Although the Nigerian government cannot be blamed for the global economic crisis which blocked access to cheaper credit and resulted in the collapse of commodity prices leading to the devaluation of the Naira and import induced inflation, it is over inability to diversify the economy that has been the country undoing.
To be dynamic and highly productive nation like USA, China, Germany and France who are respectively leading the world GDP, our nation should borrowed good leaf from them. The so called giant of Africa is number three even in Africa….. With millions of so many Professionals in the nation…..what are the professional producing to boost the nation’s GDP. It is what you produce that boosts your nation’s GDP.
Our Government should diversify more resources into the manufacturing sector so as to boost our nation’s GDP. Equally important is the need for Nigeria to adopt and implement policies similar to those that have been tried and tested by other developing countries. In the early 90s; India ran out of foreign reserve and had to resort to selling its gold reserves to the IMF (International Monetary Fund) in exchange for foreign currency. The ordeal forced its policy markets to adopt policies that encourage manufacturing.