Market News

Nigerian manufacturers under the aegis of Manufacturers Association of Nigeria (MAN) have raised the alarm that the country is currently losing billions of naira to capital flight due to lack of technology transfer.

It said the cost of lack of technology transfer to the nation’s manufacturing sector was substantial, impacting productivity, competitiveness, and overall economic growth.

While it’s difficult to put the exact monetary value, which runs into billions of naira, the consequences are that it lowers manufacturing output, reduces export potential, and misses opportunities for innovation and value addition.

A renowned manufacturer, Mrs. Kofowora Akinkugbe, the Managing Director of SecureID Limited, who disclosed this to New Telegraph in Lagos, said that the lack of technology transfer in-country had robbed Nigeria’s manufacturing sector of its full benefits to fully industrialize.

The reason for this is that Nigerian manufacturers have always engaged foreigners, mostly from China, India, Vietnam and others to handle machines and equipment with huge cost implications and funds repatriated to their countries.

She stated that from a resilient manufacturing base, a lot has been achieved, but today’s reality is that local manufacturers still import almost every piece of machinery, including raw inputs and even technical support, in many cases. This over dependence keeps the country’s manufacturing sector vulnerable as it limits its growth, stifles its ability to compete globally, which is certainly not sustainable.

Akinkugbe said: “In enhancing sustainable innovation and technology transfer in manufacturing, this conversation is not just important, but it is urgent. “We are now at a point where we must decide whether Nigeria will continue to be a buyer of ideas and innovative solutions or create them by ourselves for future enhancements as enablers of sustainable development and growth.

“Let’s be honest, our manufacturing sector is not where it should be. According to the National Bureau of Statistics, 2024 manufacturing contributed just 8.4 per cent to Nigeria’s GDP last year, down from 10 per cent five years ago.

“Meanwhile, countries like Vietnam have crossed 25 per cent and of course, we know China sits comfortably above 28 per cent and then we were told yesterday from the statistic that Africa as a whole contributes just 1.9 per cent to global manufacturing outputs, despite having nearly 20 per cent of the world’s population, this gap, as far as I’m concerned, represents a missed opportunity, but it’s a crisis that we must urgently address, but it’s not all bad news.

“There has been some achievements in the manufacturing sector, even if matters, through the entrepreneurial spirit of our Nigerian industrialists and the collaborative support of government over the years, but there is clearly room for improvement, and it will be my pleasure to see us discuss it and see how we can make Nigeria fully industrialised and not just partially industrialized.”