Nigerian manufacturers need more than macro reforms to grow —CFG Advisory

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Nigeria needs a coordinated industrial growth strategy, beyond macroeconomic reforms, to unlock investment in the manufacturing sector and accelerate economic expansion.

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Chief Executive Officer of CFG Advisory, Mr. Tilewa Adebajo, stated this in an interview on CNBC Africa. He noted that reforms such as exchange rate liberalisation and broader macroeconomic adjustments should be regarded as the foundation for growth rather than the destination.

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Adebajo argued that without deliberate policies to boost production, infrastructure and industrial investment, Nigeria would struggle to achieve sustainable economic transformation.

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According to him, the current growth rate of about four per cent is insufficient for an economy with Nigeria’s population and development needs. He said the country needs to consistently grow between eight and 10 per cent annually to significantly improve productivity, create jobs and raise living standards.

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He noted that manufacturing remains constrained by structural challenges, including high financing costs, inadequate infrastructure and the absence of a long-term industrial development framework.

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“Reforms alone are not the magic bullet. We need growth strategies that remove the structural impediments limiting productivity and investment,” Adebajo said.

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He warned that government borrowing and rising debt-service obligations are crowding out private sector investment by keeping interest rates elevated. With Treasury bill yields remaining attractive and commercial lending rates reaching as high as 35 per cent for some businesses, manufacturers are finding it increasingly difficult to finance long-term expansion.

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According to him, fiscal discipline must complement monetary, trade and industrial policies to create a more competitive environment for productive investment.

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Adebajo also called for a pipeline of large-scale bankable projects capable of stimulating industrial growth.

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Beyond major investments such as the Dangote Refinery and Nigeria LNG Train 7, he said Nigeria needs fresh investments in power, transport infrastructure, agro-processing and manufacturing clusters to deepen industrial capacity.

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He urged policymakers to leverage Nigeria’s large domestic market and the African Continental Free Trade Area (AfCFTA) to attract export-oriented manufacturers.

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Adebajo asserted that Nigeria’s reform programme will ultimately be judged not by macroeconomic stability alone, but by its ability to translate policy reforms into stronger manufacturing investment, higher productivity and sustained economic growth.

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