By Dr. Olaniyi Opanuga, FNIPM

Manufacturing industries are the backbone of Nigeria’s economy, contributing significantly to GDP growth, employment, and infrastructure development. 

 

Nigerian Institute of Production Management (NIPM), the premier professional body of supply chain and operations directors and managers is playing a pivotal role in fostering and regulating production and operations management standards, thereby enhancing the sector’s performance. 

 

Through its various units, including the Centre for Industrial Development (NIPM CID), Centre for Entrepreneurship Development (NIPM CED), and the Society for Certified Manufacturing Management Professionals (NIPM SCMMP), NIPM promotes world-class operations management, good manufacturing practices, productivity, efficiency, quality, waste reduction, safety, and environmental compliance standards. 

 

By providing expertise for the Manufacturers Association of Nigeria’s (MAN) training programs, NIPM supports the development of the manufacturing sector. 

 

NIPM industrial visitation, training, certification, advisory, advocacy, and membership programs have been instrumental in improving production standards, logistics, supply chain, operations, and manufacturing practices in Nigeria, earning NIPM recognition as a leading institution driving excellence in the sector.

Meaning of Manufacturing Industries

Manufacturing involves transforming raw materials into finished goods on a large scale, adding significant value and driving economic growth. 

 

Manufacturing industries are industrial organizations that transform raw materials and other resource inputs into finished goods to meet market demand and satisfy the customers as a means to achieve their goals and objectives.

 

It is a systematic, industrial process that often takes place in factories, transforming inputs like ore, wood, or agricultural products into higher-value consumer or industrial goods.

 

Apart from producing tangible goods manufacturing industries may also produce intangible goods such as trademarks and patents, as well as services such as logistics (e.g. warehousing, transportation), after sales, research and development (R&D, engineering design and drawings, facility leasing or letting, consultancy services, project/technical support services and contract manufacturing. 

 

Therefore, modern manufacturing may also include provision of services.

Role of Manufacturing Industries

Manufacturing industries play a crucial role in:

– Creating employment opportunities for millions of people

– Driving technological innovation and modernization

– Enhancing export capacity and boosting foreign exchange earnings

– Contributing to GDP growth and increasing per capita income

– Promoting infrastructural development, including roads, railways, and ports

– Supporting agriculture through the provision of machinery and inputs

– Encouraging entrepreneurship and small-scale industries

– Improving the country’s competitiveness in the global market

– Reducing dependence on imported goods

– Fostering economic diversification

– Increasing the country’s industrial base

– Promoting sustainable development

Importance of Manufacturing Industries in Nigeria

In Nigeria, manufacturing industries are essential for:

– Diversifying the economy and reducing dependence on oil

– Increasing the country’s competitiveness in the global market

– Improving the standard of living through the production of affordable goods

– Driving economic growth and development

– Creating employment opportunities for skilled and unskilled labor

– Promoting industrialization and urbanization

– Supporting the growth of other sectors, such as services and agriculture

– Enhancing the country’s export capacity

– Reducing poverty and inequality

Types of Manufacturing Industries

– Argo-based industries (e.g., cotton, jute, sugar)

– Mineral-based industries (e.g., iron and steel, cement)

– Construction-based industries (e.g., cement, paints, building materials)

– Pharmaceutical industries

– Chemical and agrochemicals

– FMCGs (Fast-Moving Consumer Goods e.g food, beverages, household and personal care, pharmaceutical products)

– Other Consumer goods industries (e.g. textiles)

– Capital goods industries (e.g., machinery, equipment)

– Others (e.g., automotive assembly, electronics)

Classification of Industries

– Based on source of raw materials: Agro-based, Mineral-based

– By main role: Basic/key industries, Consumer industries

– By capital investment: Small-scale, Large-scale

– Based on ownership: Public sector, Private sector, Joint sector, Cooperative sector

– By bulk and weight of raw materials: Heavy industries, Light industries

Key Manufacturing Sectors in Nigeria

– Food processing (e.g. rice milling, flour processing)

– Pharmaceuticals (e.g. local drug manufacturing)

– Textiles (e.g. cotton, apparel)

– Automotive assembly (e.g. Innoson Motors Ltd)

– Oil and Gas Production and Petrochemicals (e.g., NNPC, NLNG, Exxon Mobil, Shell, Total Energies, Midwestern Oil and Gas, Chevron, Seplat, Addax, Dangote Refinery)

Importance of Manufacturing Industries

– Provides employment opportunities for skilled and unskilled labor, improving standards of living

– Diversifies the economy, reducing dependence on a single sector (Oil)

– Add value to exports through processing raw materials

– Stimulates infrastructure development (roads, railways, etc.)

– Creates a large internal market through worker salaries

– Increases agricultural production through industrial demand

– Generates foreign currency through exports

– Reduces dependence on imported goods

– Drives science and technology development

– Improves international relations through trade

– Promotes sustainable development

– Supports the growth of other sectors, such as services and agriculture

– Enhances the country’s competitiveness in the global market

Why Manufacturing Jobs are Important

Driving job creation through manufacturing has the following benefits:

– Manufacturing jobs facilitate economic growth and development

– They support the services sector and overall societal growth.

– Manufacturing breeds skilled workers some of whom may become entrepreneurs that would create future jobs.

– Filling manufacturing roles ensures the industry’s continued growth and relevance

– Manufacturing skills are essential for navigating technological advancements and economic challenges

Challenges Facing Manufacturing Industries

It is no news that manufacturers are lamenting on a number of inadequacies that need to be addressed.

These include:

– Inadequate power supply

– Multiple taxation

– High interest rates

– Poor infrastructure (roads, ports, etc.)

– Unpredictable government policies

– Lack of access to affordable credit

– Inadequate skilled workforce

– High cost of raw materials and inputs; high cost of doing business generally.

– Insecurity and instability in some regions

– Bureaucratic red tape and corruption

– Limited access to export markets

– Inadequate research and development

– Environmental and regulatory challenges

– Unfair competition 

Government Initiatives

There are a number of Government initiatives aimed at stimulating growth in the manufacturing sector. These include:

– National Industrial Policy

– Pioneer Status Incentive/Economic Development Tax Incentive (EDTI) Scheme 

– Free Trade Zones (spread across the country)

– Import Duty Exemptions and Waivers

– Bank of Industry (BOI)

– Small and Medium Enterprises Development Agency (SMEDAN)

– National Agency for Science and Engineering Infrastructure (NASENI)

– Technology Incubation Centers

– Export-Import Bank of Nigeria (EXIM Bank)

– Industrial Training Fund (ITF)

NIPM’s Contribution to Manufacturing Excellence

Nigerian Institute of Production Management (NIPM) is increasingly championing manufacturing excellence in Nigeria through various programs and initiatives. These include:

– Setting standards for production and operations management including supply chain and logistics management practices.

– Advocating Made-in-Nigeria of world-class.

– Advocating higher productivity, quality, safety, maintainability, reliability and environmental sustainability standards.

– Providing training and certification programs for professionals to enhance skills, competency and performance standards.

– Advocating for policies that promote industrial growth

– Collaborating with stakeholders such as government agencies, regulatory bodies and manufacturers associations to drive innovation and best practices.

Conclusion

The manufacturing sector has the potential to transform Nigeria’s economy and improve the lives of its citizens. 

With the right policies, investments and professional bodies like NIPM driving excellence, Nigeria can become the biggest manufacturing hub in Africa.

■ About the Author

Dr. Olaniyi Opanuga, FNIPM, is a distinguished Professor at the College of Manufacturing, Logistics, Supply Chain and Operations Management (CMLSCOM), and serves as Provost and Dean of Studies at the College of Production And Operations Management (COPOM). 

 

As an internationally certified management consultant (ICMC) and Fellow of the Institute of Management Consultants (IMC), he brings expertise and excellence to the field. He is also a Fellow of The Certified Institute of Applied Management And Administration (CIAMA) and a Certified Management and Administration Professional. 

 

With a remarkable career spanning 40 years, Dr Opanuga has produced and mentored over 5,000 professionals, and consulted for more than 250 organizations, including multinational corporations, government agencies, and indigenous companies. 

 

His profound impact on the manufacturing sector has promoted professionalism, productivity, efficiency, and operational excellence, earning him recognition as a thought leader per excellence and the pioneer of professional production and operations management education in Nigeria.