Nigeria Manufacturing & Equipment - Developments of the Nigerian Manufacturing Sector: the Right Time to Invest?
Nigeria’s growing $150bn consumer market and abundance of raw materials means that the manufacturing sector has massive potential for growth, and could well see Nigeria becoming the next global manufacturing hub. The Federal Ministry of Nigeria has instigated several measures that aim to boost the manufacturing sector.
In a bid to diversify the economy, utilise the vast amount of raw materials available and meet the demands of this huge and fast-growing consumer population, the Federal Ministry of Nigeria has instigated several measures that aim to boost the manufacturing sector. Nigeria’s growing $150bn consumer market and abundance of raw materials means that the manufacturing sector has massive potential for growth, and could well see Nigeria becoming the next global manufacturing hub.
One barrier to this development is the accessibility of forex to purchase new machinery and tools from international suppliers. To combat this challenge and support SME’s & manufacturers to retool and modernise, the Federal Ministry have passed legislation that encourages the import of manufacturing machinery and tools. This includes a large proportion of USD ring fenced by Central Bank of Nigeria (CBN); as high as 50-60% of all USD reserves in Nigeria. Other measures taken include Government funding and low interest, long-term loans as well as a reduction or full removal of import duties on manufacturing machinery.
The need for this machinery in the market is evident from the healthy amount of imports of packaging and processing machinery into Nigeria in past years. In 2015 Nigeria imported USD$267 million of food processing and packaging machinery and USD$144 million of packaging technology (VDMA).
In order to support the growth to the manufacturing sector and provide an international platform for end of line packaging and processing machinery imports, the Nigeria Manufacturing & Equipment Expo was established by Clarion Events West Africa and Event Patron, the Manufacturers Association of Nigeria (MAN).
The exhibition supports the popular Made-in-Nigeria movement by connecting Nigerian manufacturers such as: Flour Mills Nigeria, Dangote Group, Cadbury Nigeria, Procter & Gamble and GSK Nigeria together with international suppliers and local resellers of affordable end of line packaging & processing machinery for the agro, food, beverage, tobacco, pharmaceutical, textile, industrial and non-food manufacturing sectors. Previous exhibitors include: GEA, Buhler, Kautex, Mazzoni and Global Sterling.
Previous international exhibitor, Mr. Andreas Kruger, General Manager, GEA West Africa commented, “this is the best exhibition I have attended in Nigeria.”
There are also free SME and manufacturer training sessions led by prominent figures in the industry on topics such as securing funding and increasing capacity and profit.
As shared by Event Patron, Segun Ajayi-Kadir, Director General, Manufacturers Association of Nigeria (MAN) Nigeria Manufacturing & Equipment Expo provides “exposure to the entire manufacturing value chain, which will include machinery, equipment, financial support, professional consultancy and now raw material.”
Nigeria Manufacturing & Equipment Expo, featuring mPAD (Manufacturing Partnerships for African Development) and co-located with Nigerian Raw Materials Expo (NIRAM), will be holding on 13 – 15 March 2018 at the Landmark Centre, Victoria Island, Lagos.