OPINION… The Lost Wealth in Nigeria’s Import Addiction: Why Nigeria must finally love what it makes

OPINION… The Lost Wealth in Nigeria’s Import Addiction: Why Nigeria must finally love what it makes

At the bustling Oke-Arin market in Lagos, Mama Nneka sells rice. The premium shelf groans under imported Thai and Indian brands, plastic packaging gleaming under fluorescent lights. In a dusty corner, bags of locally milled rice from Kebbi carry the label “Proudly Nigerian,” but attract few hands. “Customers say it doesn’t swell enough, it has stones,” she shrugs. A few kilometres away, Nigerian Customs seizes another truckload of smuggled parboiled grains.

This paradox — a nation that outlawed rice imports yet hungers for the forbidden grain — is a miniature of Nigeria’s tortured relationship with its own productive potential. The question is brutally simple: why should the world take Nigeria’s industrial ambition seriously if Nigerians do not love themselves enough to promote what they produce?

Across the Pacific, Japan imposes a 778 percent tariff on imported rice, a wall so high that foreign grains are museum pieces in Tokyo stores. Taiwan enforces a strict tariff-quota system that keeps its paddy fields sacred. China did not become the world’s factory by allowing foreign cars to flood its highways untaxed; it erected joint-venture mandates and nurtured domestic champions until they could fight alone.

Yet Nigeria, a nation of over 230 million people, runs a policy regime that feels like an open invitation to every foreign factory while local manufacturers gasp for air. Local content policies exist in speeches, rarely in enforcement, and are applied selectively. The result is collective amnesia: the “Proudly Nigerian” brand is something to hide, not proclaim loudly on the streets.

What corrupts the lens is what veteran industrialist Innocent Chukwuma calls a “colour blindness” born of politics and ethnicity. The Nigerian state struggles to see merit without filtering it through prisms of regional origin or party affiliation. Innoson Vehicle Manufacturing, from the South-East, has battled for over a decade to convince government agencies to buy its cars despite a 2017 federal directive mandating patronage of locally assembled vehicles.

In 2023, the National Assembly budgeted ₦57.6 billion for “operational vehicles,” and civic investigations revealed the procurement list was a carousel of imported Toyota Land Cruisers and Lexus models. The message was unmistakable: the state that demands loyalty will not buy what its own children build. When ethnic and political calculations hijack economic policy, the nation goes blind to its own genius.

There is one towering exception that proves the rule: Dangote Refinery. The $20 billion leviathan, which began production in 2023, was shepherded into existence with crude supply guarantees, forex allocations, and presidential oversight. It stands as proof of what targeted, patriotic policy can achieve when willpower and state capacity align.

But the light it casts is harshly uneven. In the same period, hundreds of smaller manufacturers in textiles, plastics, and agro-processing have crumpled under multiple tax demands, a collapsed electricity grid, and a forex crisis that made importing raw materials a suicide mission. If Nigeria can summon such energy for one refinery, why not for the thousands of enterprises that could weave, bolt, and till the nation into prosperity?

Part of the answer lies in the national palate. Nigeria’s food import bill still bleeds billions of dollars annually for products that grow abundantly on its soil: tomato paste from Italy, wheat from Russia, milk from Ireland, fish from China. The 2019 border closure triggered a surge in local milling, and paddy output jumped from 5.8 million metric tons in 2015 to over 8.2 million by 2022, per the US Department of Agriculture.

Yet the moment borders partially reopened, taste buds conditioned by decades of marketing that equated “imported” with “prestigious” reverted to the familiar. Changing this appetite requires more than tariffs. It demands cultural re-engineering that begins in school feeding programmes, pulses through celebrity chef endorsements, and glows on social media campaigns like #BuyNaijaToGrowTheNaira.

International competitors enjoy advantages local producers can only dream of. Segun Ajayi-Kadir, Director-General of MAN, stated in a recent review that the average Nigerian manufacturer contends with power costs four times higher than in China, while single-digit loans remain a fantasy. “The operating environment is suffocating,” he said, noting capacity utilisation plunged to 48 percent in 2023 and at least 767 manufacturing jobs were lost.

When a foreign firm produces under stable electricity, subsidised credit, and efficient ports, then ships to a Nigerian market with porous borders and high logistics costs, local manufacturers are not competing — they are being euthanised.

Regulation should level the field, but the Standards Organisation of Nigeria has been politically and financially strangled, rendering it, in one analyst’s words, “a toothless bulldog.” It struggles to inspect, certify, and enforce standards against a tide of substandard imports and counterfeits.

The consequence is vicious: poor local quality reinforces consumer distrust, and the lack of a stern enforcer denies producers incentive to improve. China’s phone industry, derided a generation ago as “chinco” — cheap, unreliable knockoffs — transformed itself because Beijing enforced rigorous standards and consumers were nudged to buy local. Today, Huawei, Xiaomi, and Transsion dominate because they were forged in a home market that demanded better and bought patriotically.

By ignoring locally made products, Nigeria exports labour and tax revenue. The textile industry that supported over 175 mills in the 1980s and employed hundreds of thousands has collapsed to fewer than a dozen ailing factories. Every yard of imported Ankara or second-hand shirt entering through Cotonou’s smuggling route is a pay cheque stolen from a Nigerian tailor.

The World Bank notes manufacturing contributes a meagre 9 percent to GDP, compared to 27 percent in China and 13 percent in South Africa. An economy that does not make things cannot generate decent jobs for its booming youth population. Official unemployment, redefined to 4.2 percent, masks an ocean of underemployment and informal survivalism that consigns millions to fragility.

Nigeria’s market size is not a curse; it is a rocket waiting for a launch pad. With a population set to become the world’s third largest by 2050, domestic demand alone could power an industrial revolution. Simple math: if each Nigerian shifted just ₦1,000 of monthly spending from imported to locally produced goods, that would inject over ₦230 billion monthly into domestic factories and farms.

India’s “Vocal for Local” campaign proves national mood can shift. Nigeria needs more than slogans. It needs an ecosystem where local content is not a suggestion but a structured pathway, with tax breaks, procurement mandates, and media that celebrates homegrown innovators instead of imported luxury.

Import tariffs on items with local alternatives must be deployed surgically and defended with integrity. Nigeria’s tariff book is a swamp of waivers, multiple exchange rates, and port corruption that mocks protection. AfCFTA looms, promising a unified market but threatening to crush infant industries if the domestic base is not fortified first.

Smart, time-bound protectionism — coupled with hard infrastructure like rail, energy, and efficient ports — built every Asian Tiger. Taiwan did not open its rice market until compelled, and still shields farmers with non-tariff barriers. Walking the talk means sealing the Benin Republic smuggling artery not with sporadic closures but with technology-driven customs enforcement and severe penalties for complicity.

The drive to buy Nigerian must be cleansed of gender, ethnic, and political bias. A female-led agro-processing cooperative in Gombe produces shea butter that meets EU standards yet struggles for NAFDAC registration, while well-connected importers obtain forex at official rates for Malaysian substitutes. If “Proudly Nigerian” applies only to businesses owned by the politically powerful, it will implode in cynicism. Policy must be blind to surnames and deaf to godfathers. It must see only the “Made in Nigeria” label and the quality stamp.

Standardised production through effective regulation would ensure quality, but the regulator must be unchained. SON and NAFDAC need adequate funding, statutory independence, and a mandate to help small producers upgrade and to ruthlessly destroy dangerous goods. Predictable, transparent regulation attracts investors who want to co-produce, not dump.

Vietnam and Ethiopia climbed the value chain by insisting on local assembly and gradual technology transfer. Nigeria’s Zinox Technologies once secured a landmark government laptop contract and proved a homegrown product can compete. That spark was never fanned into a sustained industrial blaze.

Government procurement is the most powerful tool to walk the talk. The Nigerian state is the single largest consumer of goods and services. An executive order mandating that all federally funded vehicles be locally assembled, all furniture be made from Nigerian wood by Nigerian carpenters, and all school uniforms be sewn from domestic textiles would send an unmistakable signal.

In 2023, the Federal Executive Council approved ₦1.4 billion for operational vehicles for one agency, all imported brands. Had that money flowed to Innoson, Nord, or Stallion, assembly lines would hum, engineering skills would deepen, and a parts-supplier ecosystem would be born. Policy on paper, without will to slash procurement budgets for imported status symbols, is silent betrayal.

Cultural change is the deepest trench. It means making “Made in Nigeria” a badge of coolness. Lagos Fashion Week has started this for apparel, but the movement must spread to packaged foods, automobiles, appliances, and tech. When Nigerian celebrities flaunt local sneakers on red carpets, when music videos feature locally assembled electric motorcycles, and when secondary school economics textbooks have a chapter titled “Why We Buy What We Make,” mental import dependency will crack.

No country — not China, Japan, nor South Korea — built a manufacturing base while elites sneered at domestic goods. The task is to wire the national psyche for pride.

The cost of inaction is visible in a naira that lost over 70 percent against the dollar in a year, in a nation importing $8 billion worth of vehicles annually while its car plants languish, and in a textile sector that once clothed West Africa but now imports rags. “No country has escaped poverty by exporting raw materials and importing finished goods,” economist Ha-Joon Chang said, and Nigeria is the textbook case.

Local content policy must reflect collective resolve, not quarterly PR. When the finance minister, the customs boss, and the president’s convoy visibly use Nigerian-made products, the country will believe.

The proudly Nigerian brand must finally be loud on the streets. Imagine Lagos where yellow danfos are locally assembled, where rice in every jollof pot is milled in Kano, where smartphones run on software coded in Yaba, and where power brokers’ suits are tailored from Aba fabrics. That vision is not utopian; it is a choice that requires a country to love itself enough to enforce its own rules, elevate its own labour, and savour the taste of its own soil.

The policies are drafted, the market is enormous, the talent is abundant. What remains is the courage to walk the talk, without selective blindness, and to make “Made in Nigeria” not a whisper on a dusty shelf, but a roar from the presidency to the last street hawker.

By: Allen Durueke


Allen Durueke is a human interest writer, acclaimed author, and commentator on public affairs, social issues, government policy, and how they shape everyday lives.



(Ripples)

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