‘Nigerians Spent N6.7 Trillion on Imported Consumables in 2015’

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  • ‘Nigerians Spent N6.7 Trillion on Imported Consumables in 2015’

Nigerians spent N6.7 trillion on importa-tion of consumables and household items in 2015, Minister of State for Industry, Trade and Investment, Mrs. Aisha Abubakar stated yesterday.

She spoke in Kano at a stakeholders’ meeting on “Buy Made-in- Nigeria Products” by the Ministry in collaboration with the Federal Ministry of Information and Culture.

Abubakar declared the staggering amount being spent on importation of goods as unacceptable, saying it is responsible for the campaign to change perception of Nigerians towards patronising locally made products.

She said: “In 2015 alone, over N6.7 trillion was spent on the importation of goods and services for which the nation can produce locally.

“Also, N1.09 trillion was reportedly spent on imported foods and drinks; N1.5 trillion on spare-parts; N123.01 billion on shoes and clothes and N399 billion on household items. Imagine if this had been spent on our local industries.”

Abubakar informed government’s determination to encourage the patronage of Made-in-Nigeria products by Ministries, Departments and Agencies made Acting President Yemi Osinbajo sign the Executive Order 3, aimed at ensuring that 40 per cent goods procured by government agencies are made locally.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

2 Comments on "‘Nigerians Spent N6.7 Trillion on Imported Consumables in 2015’"

  1. Muyiwa Osifuye | July 16, 2017 at 1:30 pm | Reply

    Thanks for bringing up this. Believe you me Samed,
    1) the production of these items could be taken up by our teeming population of unemployed graduates and other Nigerians yearning to go into enterprise but quite the opposite is what we see happen.

    2) There are many reasons, beyond an individual’s personal conviction of entrepreneurship — of whether to seek employment or not– and these are the high cost of capital and the short term period of repayment.
    And limited sources of capital unlike in the other clime where these products are being imported from.

    3) Now these countries where many of these products come from have basic infrastructure entrenched within their economic system.
    Here, your cost of production due to the absence of some inputs might not make you globally competitive inspite of God –given raw materials and human resources that are hugely and more abundant here in Nigeria.
    So you drop the idea right there on your business plan.

    4) Again elswhere, they have multiple sources of capital…from angels investors, venture capitalist et al.

    5) Aside the taste for foreign goods, I believ if the ever-willing Nigerians who are capable find things much much easier, they would produce such high quality of these products.

    But how do we get there? We will need a loving, smart and good people in the helms of affair who come up with policies that affects us all.
    Who would stop reeling out these statistics But let bygone be bygone about our values of me…me…me … And not the common good.

    So our values have been the culprit thereby making it difficult for us to make the best use of our heard earned resources which we throw out to pay for these items from other nations.

    My submission here may not do absolute justice to the diverse root cause of this “wasteful and painful”report.
    It is sad.
    We can only beg the powers that be to do what is right for these huge population…who simply want to be productive…

    That is the only wish, since all have been tried.

  2. @Muyiwa, thanks for your submission. This is a comprehensive summary of the situation. Just like you said: until the monetary policy committee adjusts interest rate to accommodate our entrepreneurial needs these challenges will not go away anytime soon.

    I have said in the past that the ease of doing business currently being pursued by the acting president would amount to nothing without access to cheap loans as that would enable local players to participate enmass, and not just foreigners that have access to cheap loans from overseas and are currently buying Nigerian businesses that have been battered by the recession.

    Local businesses need a platform to thrive like you’ve said. It amazes me that even though we have one of the largest underserved markets in the world, policy makers are not doing much about it. Once again thanks for your submission.

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