(Minister of State for Industry, Senator John Enoh. Photo by Business Times)
As part of efforts to reposition Nigeria’s industrial sector and drive economic growth, the federal government has stated that talks are on to revitalize the Ajaokuta Steel Company and dormant textile mills across the nation.
Minister of State for Industry, Senator John Enoh, disclosed this during an interview on a television programme on Tuesday, saying the Tinubu administration was implementing the National Industrial Policy to boost manufacturing, create jobs and drive Nigeria’s ambition of building a $1 trillion economy.
Speaking on efforts to revive the textile industry, Enoh said government was engaging investors and development partners to restore the cotton, textile and garment value chain.
Disclosing that work was ongoing on the Cotton, Textile and Garment Industrial Transformation Programme aimed at reconnecting cotton growers, textile manufacturers and garment producers, which he described as the missing link in the sector.
He added that discussions were also ongoing with investors interested in converting abandoned textile factories into industrial parks, noting that government was in talks with development and investment partners and expressing hope that necessary agreements would be concluded within the coming weeks.
On the Ajaokuta Steel Company, the minister said discussions with international investors were progressing, stressing that there could be no meaningful industrialisation without steel, and disclosing that he would soon be meeting with an international consortium interested in the project, expressing optimism that the engagements would yield positive results.
Enoh described industrialisation as the foundation of the federal government’s economic agenda, stressing that production remains critical to achieving sustainable growth, noting that a one-trillion-dollar economy cannot be built without production, regardless of fiscal and monetary policies in place.
He explained that the National Industrial Policy, launched in February, was the first comprehensive industrial policy Nigeria had developed in decades, backed by an implementation framework with defined responsibilities and quarterly reporting.
He said government was targeting an increase in industry’s contribution to GDP to about 25 per cent by 2030, noting that every industrialised nation maintains a strong manufacturing base, which is the direction Nigeria is pursuing.
He added that government was also promoting value addition to reduce raw material exports, while expanding access to affordable long-term financing through institutions such as the Bank of Industry.
Enoh further disclosed that the Nigeria First Policy was being implemented to encourage patronage of locally manufactured goods, while efforts were also underway to reduce manufacturers’ energy costs, noting that energy accounts for about 40 per cent of operating costs for manufacturers, hence the need for practical solutions to make power more affordable and reliable for industry.