The Nigerian Economic Summit Group (NESG) has hinted on factors responsible for investors not to look at the side of manufacturing sector in the country.
NESG explained that despite the numerous opportunities in the manufacturing sector, only N5.73 trillion has been invested in it so far.
The group disclosed in a report released on Friday, May 14, unveiling the gap between announced investment and actual investment points to the low confidence level of investors in the real sector.
The report: “Between 2019 and 2020, investment announced stood at US$46.4 billion with the manufacturing sector accounting for 25% (US$11.56 billion) of these announced investments.
“Actual FDI inflows into the economy in both years was US$1.96 billion (just 4% of announced investment) with sectors such as Telecoms, Trade, Agriculture and Manufacturing, accounting for the larger inflows (NIPC, 2021).
“One major reason the manufacturing sector has not attracted significant investments when compared with those of other countries is policy and regulatory inconsistency.
“Frequent reversals of government policies on importation, lack of implementation of the provisions in national policy documents and regulatory lapses are key factors that have affected the manufacturing sector in Nigeria.”
Techeconomy.ng previously reported that the Central Bank of Nigeria (CBN’s) intervention funds to the manufacturing sector rose to N803bn as of February.
This medium obtained the figures from the CBN’s report on the Monetary Policy Committee revealed this on Tuesday, April 12.
The report read: “Under the N1tn manufacturing intervention stimulus, the total of N803.36bn has been disbursed to 228 projects across various sectors in agro-allied, mining, steel production and packaging industries, among others.”
This medium can report that the CBN, in May 2020, introduced guidelines for the implementation of the COVID-19intervention facility for the manufacturing sector.
The central bank explained that the intervention facility was to support the Federal Government’s palliative measures to support beleaguered manufacturing enterprises in priority economic activities.