SURVIVAL OF MANUFACTURING COMPANIES IN NIGERIAN POST-ECONOMIC SHORT DOWN
Challenges faced by the Nigerian manufacturing sector warrant appropriate responses from government as well as the industry for improving the competitiveness of the sector. There are a few areas where both the government and the industry need to put in efforts through a well-designed Public-Private partnership mode. If fully implemented, it provides the key performance indicators (KPls) upon which the sector can be monitored.
The following need to be understood
(i) The manufacturing sector needs to access the vast market possibilities available at the bottom of the income pyramid in the country.
(ii) The first essentiality for ensuring manufacturing competitiveness is macroeconomic stability.
(iii) Lowering the cost of manufacturing and improving the quality are essential for competitiveness
(iv) Domestic indirect taxes are often singled out as a major reason why Nigerian manufacturing is uncompetitive.
(v) For instance, in India, there has been advocacy of industrial watchers that high interest rates and availability of credit are problems which hinder growth of the industry as reported by Rakesh, (2007) in his commentary on Challenges Faced by Manufacturing Sector.
(vi) Innovation holds the key to increasing productivity.
(vii) The government should consider establishing technology parks.
(viii) The manufacturing sector is critically dependent on the infrastructure facilities
particularly, in transportation sector – roads, railways, ports, airports etc. formovement of goods.
(ix) It is estimated that power shortage alone contributes to production loss of at least one percent of GDP.