NESG Backs Stabilisation Fund to Boost Nigeria’s Manufacturing and Energy Sectors
The Nigerian Economic Summit Group (NESG) has thrown its weight behind a stabilisation fund aimed at revitalising Nigeria’s struggling manufacturing sector through single-digit interest rate loans.
Speaking during a media session on Friday, NESG Chief Executive Officer Dr. Tayo Aduloju emphasised the urgency of industrialisation as a pathway to economic growth. He noted that the stabilisation fund could provide critical financial support to manufacturers, enabling them to refinance their operations, secure raw materials, and create jobs.
“Industrialisation requires several things to come together,” Aduloju stated. “We must be serious about pursuing industrialisation for export. The current macroeconomic conditions favour an export-led economy. To achieve this, we need to recapitalise for industrialisation and fully support the manufacturing stabilisation fund.”
Aduloju warned of the risks posed by the ongoing contraction in the manufacturing sector, which he described as labour-intensive and vital to job creation. “Rather than creating more jobs, we are creating fewer jobs,” he said. “We need to pursue industrialisation aggressively.”
Government Steps In
The NESG’s call aligns with the Nigerian government’s recent push for industrial reform. Senator Owan Enoh, Minister of State for Industry, announced plans to establish a workgroup dedicated to industrialisation during his inaugural meeting with stakeholders on Wednesday. Dubbed a “war group” for industrial revolution, the initiative will be co-chaired by the Minister and Francis Meshioye, President of the Manufacturing Association of Nigeria.
Enoh expressed optimism that the group’s periodic consultations would deliver actionable solutions to Nigeria’s industrial challenges.
Energy Sector Overhaul Needed
Beyond manufacturing, Aduloju highlighted the energy sector as another area requiring urgent attention. He underscored the need for financial intervention across the electricity value chain—from generation to distribution—and called for the recapitalisation of distribution companies (DisCos) to attract foreign direct investment (FDI).
“The electricity sector needs funding across the board,” Aduloju said. “We need to resolve energy supply challenges by committing to market efficiency and adopting blended financing models that don’t rely entirely on debt.”
He warned, however, that without market-reflective tariffs, investors would remain wary. “We need a system that transitions towards improving infrastructure to supply enough power, collect sufficient revenue, and capitalise the DisCos to attract investment,” he explained.
Exchange Rates and Inflation
Aduloju also touched on the positive effects of Nigeria’s unified exchange rate policy, noting that it has bolstered foreign reserves by reducing subsidies and leakages in the foreign exchange market. However, he cautioned that inflationary pressures, particularly during the festive season, could dampen these gains.
“The government is beginning to profit from the harmonisation of the exchange rate market,” he noted. “But inflation remains high, and its effects, especially during Christmas, must be carefully managed.”
As Nigeria faces the twin challenges of inflation and underinvestment, the NESG’s recommendations underscore the critical need for systemic reforms to unlock the country’s economic potential and position it for long-term growth.
