Group attributes increased local sourcing of raw materials to Tinubu reforms
The Tinubu Media Volunteers (TMV) have attributed the increase in local sourcing of raw materials by Nigerian manufacturers to the economic reforms of President Bola Tinubu’s administration.
In a statement by its Chairman Chukwudi Enekwechi and Secretary Segun Ogedengbe, the group noted that local sourcing of raw materials had been on a steady increase, rising from 51.5% in 2021 to 57.1% in 2024
The statement read, “We note that foreign exchange pressures, naira depreciation and rising import costs had pushed the manufacturers towards domestic alternatives.
Data made available by the Manufacturers Association of Nigeria (MAN) show that local sourcing of raw materials averaged 51.5 per cent in 2021, rising marginally to 52.8 per cent in 2022 and 53.5 per cent in 2023, and rising sharply in 2024.
“From all indications, the 5.6 percentage point increase recorded between 2021 and 2024 shows an improvement of 10.9 per cent over the four years.
“We also acknowledge that the economic reforms enunciated by the Tinubu administration had encouraged the local manufacturers to embark on a policy of backward integration, which has enabled them to continue with their production without resort to imported raw materials.
“It is also noted that with this approach, the manufacturers were able to overcome the persistent foreign exchange challenges and high import costs.
“Among the sectors where the manufacturers recorded a significant increase in sourcing local raw materials are wood and wood products, textile apparel and footwear, and chemical and pharmaceutical sub-sectors, while the electrical and electronics sub-sector remained heavily dependent on imported components.”
The group applauded the President Tinubu administration for its vision in redirecting the economy towards productivity while insulating manufacturers from the vagaries of import and foreign exchange challenges.
