The closure of the borders seemed to have boosted local production and manufacturing as the demand for locally-made goods and services increased and reducing inventory.tbiafrica.com reports.
Recall that the federal government had in August 2019 enforced closure of the country’s land borders following the spike in smuggling activities, and further extended it to contain the spread of the coronavirus pandemic in March 2020.
In a report released by the Manufacturers Association of Nigeria (MAN) at the weekend, the body noted that unsold inventory of locally manufactured goods declined by N23.73 billion.
MAN attributed this development to the closure of land borders within the ECOWAS regions, which forced many Nigerians to buy local substitutes as the import of foreign products became restricted.
“In the second half of 2019, inventory of unsold finished manufactured goods dropped marginally in the sector to at N202.16 billion, down by N23.73 billion (10.5 percent) when compared with N225.89 billion recorded in the corresponding half of 2018.
It however increased by N1.9 billion (0.9 percent) when compared with N200.26 billion recorded in the first half of 2019.
Inventory of unsold finished goods in the sector totalled N402.42 billion in 2019 and N375.42 billion in 2018.
The development can be attributed to the closure of land borders of the country within the ECOWAS regions which made Nigerians resulting to the purchase more of locally manufactured goods in the period.”
The survey further revealed that industrial zones such as the Ikeja zone recorded the highest inventory of unsold manufactured finished goods of 30.7 percent in the period, followed by Ogun with 26.2 percent and Apapa zone with 21.2 percent.
Confirming this development, the Acting DG of MAN, Mr. Ambrose Oruche said basic metal, iron & steel fabricated metal group amongst others recorded the highest inventory within the period.
It would be recalled that successive governments in Nigeria have advocated for the patronage of local products towards boosting the naira and promoting national revenue.
By Francis Ogwo