The Federal Government is preparing to kickstart a campaign designed to encourage Nigerians to patronise goods made in Nigeria. This is one of the measures being adopted by the government to reduce the current pressure on foreign exchange, strengthen the local currency, stimulate economic growth and create jobs.

On Monday, the government divulged that it had commenced the implementation of the National Industrial Revolution Plan (NIRP). The Minister of Budget and National Planning, Senator Udoma Udo Udoma, said this in Abuja on Monday, while inaugurating the Joint National Planning Committee for the 22nd Nigeria Economic Summit (NES#22), aptly themed ‘Made in Nigeria.’ “The summit will, essentially, be used to galvanise support from stakeholders on the need to commit to structural and fiscal changes required to strengthen the Nigerian economy. It starts with changing our orientation in consumption patterns by shifting our mindset and preference for anything imported and foreign made to patronising made-in-Nigeria products,” the minister said. The government has been very vocal about encouraging local production and this initiative comes on the back of the Public Procurement Act 20‎07 (amendment bill 2016) passed into law last month, which makes it mandatory for government agencies to patronise goods made in the country.

The minister, however, acknowledged that there were challenges with patronising locally made products, adding that the main issue is that people complain about quality and the sub-standard nature of the products. While there is a degree of truth to this, the campaigns look to encourage local production and hopes to set off a virtuous cycle where the patronisation of firms by consumers will stimulate investment required to upscale quality. “We are calling on all our economic agents government, corporate organisations and individuals to re-orientate to Nigerian made goods and services first, before considering imported products,” Udoma said.

The campaign is right to stipulate that if Nigerians substitute foreign goods for local consumption, it will provide much needed relief to the pressure on the Nigerian currency as well as the nation’s foreign reserves. However, import substitution policies are seldom successful as they often breed a culture of dependence and latent comparative advantages rarely ever actualise. There is a valid case for the disposition of Nigerians towards imported goods at the expense of local goods, especially in the fashion and tourism industries; at the same time, Nigerians have welcomed local products when the content has been deemed good value for money.

The local music industry has grown exponentially as its content and advertising have improved from lacklustre levels. Likewise, several products and services have been hugely successful as they constantly provide customers with novel and innovative solutions. The encouragement of local production cannot be holistically addressed without tackling the limitations of critical infrastructure like power supply. Vital organs in the energy sector were privatised in 2013 in an effort to improve the generation and distribution electricity but the sector still faces major challenges, such as affordable natural gas and access to funds to update critical infrastructure. The epileptic power supply significantly increases the cost of doing business in the country and takes away from the cost advantage local firms will otherwise enjoy.