Economy: Domestication of policies and competitiveness will boost economic growth – Ugoji Lenin Ugoji

Article Summary 

• Policy and credit are critical factors in reigniting growth within the manufacturing sector. The reason why banks do not fund SMEs is simply because the sovereign risk is too high.
• Lagos State government is paying more attention to its industrial estates, Hubs, and Enterprise zones to support Micro Small, and Medium Enterprises (MSMEs).

Group Managing Director, C & I Leasing Plc, Ugoji Lenin Ugoji has said that domestication of policies and prioritizing areas of comparative advantage to make local industries competitive will drive sustainable growth in Ayoola Olaitan the manufacturing sector and the economy. 

Ugoji stated this at a breakfast meeting organized by the Nigerian Indonesia Chamber of Commerce and Industry (NICCI), in collaboration with Equipment Manufacturing West Africa (EMWA) theme ‘Reigniting manufacturing to drive economic growth and development.’ 

• He said: “We need to be practical, and we need to start from where our strength begins. Our strength may not be in manufacturing immediately, yet we could exploit the places where we have a comparative advantage in terms of the mineral resource or the material itself. “ 

Policy and credit

He noted that policy and credit are critical factors in reigniting growth within the manufacturing sector. 

• According to him, “I think the policy is everything if we are going to achieve what it is we say we are going to achieve here. The policy requires strategy, it requires will, and it requires collaboration.” 
• “Availability of credit is so critical to all that we are trying to do. The reason why banks do not fund SMEs is simply because the sovereign risk is too high. There are usually too many downsides impeding the process of knowing when a bank lends money, it needs to ensure the money comes back because it is depositors’ money”. 

Micro Small and Medium Enterprises

Restating the Lagos State’s government’s commitment to nurturing an enabling environment for business growth, the state’s Permanent Secretary, Ministry of Commerce, Industry and Cooperatives, Mrs Adetutu Ososanya, FCA said that the state is paying more attention to its industrial estates, Hubs and Enterprise zones to support Micro Small and Medium Enterprises (MSMEs). 

• She pointed out that: “In addition to the ongoing reorganization of existing small-scale industrial estates that are situated in various commercial axis of the state, Governor Babajide Sanwo-Olu led administration is working to complete a new industrial estate at Imota LCDA”. 

President of the Nigeria Indonesia Chamber of Commerce and Industry (NICCI), Mr Ismaeel Balogun, described the Breakfast meeting as a melting point of ideas and partnerships between equipment manufacturers and industrialists.   

• According to him: “There is no doubt that equipment is critical to industrialization and has the potential to reignite manufacturing that will drive economic growth and development. The meeting is to further turn our attention to the need to focus more on manufacturing as a way out of the current national underdevelopment and economic challenge”.