The Group Managing Director, Skye Bank Plc, Mr. Timothy Oguntayo, has called for massive investment in manufacturing, agriculture and extractive industries to speed up the process of diversifying the nation’s economy.
He said this at a ‘Roundtable session on the manufacturing outlook for 2016’ organised by BAA Associates in Lagos.
The lender, in a statement on Monday, quoted Oguntayo, who was a lead panelist at the event, as saying the three sectors were critical for the success of the economic diversification agenda of the current government in view of the dwindling oil prices, low Gross Domestic Product growth, and rising unemployment.
He went down memory lane, saying the manufacturing sector contributed 10 per cent of the GDP before the oil boom in the 1970s; but he lamented Nigeria’s dependence on oil export and earnings since 1990.
He said the dependence on oil resulted in the neglect of the manufacturing sector; just as low investment in public goods and infrastructure led to the decline in manufacturing activities.
To reverse the negative trend, the Skye Bank boss recommended the expansion of public infrastructure such as road and electricity to promote manufacturing.
In addition, he advised manufacturers to access the Central Bank of Nigeria’s N200bn and the Bank of Industry’s N200bn intervention funds to boost their operations.
Noting that commercial banks were not structured to provide long-term funding but bridge finance, he said the BoI and NEXIM Bank should be strengthened to provide long-term funding for manufacturers.
To enhance their capacity, Oguntayo advised manufacturing firms to focus on improving the effectiveness and efficiency of their sales force in order to create opportunities for sales growth.
Oguntayo expressed his support for the import ban placed on some items that could be sourced locally, saying it would promote import-substitution strategies and lead to less stress on the naira.
