Beyond FG’s Bid To Boost Light Industry, Promote Home-Made Goods, There Is Need For Regular Electricity Supply

There is no denying the fact that prior to, and since assumption of office on May 29, 2023 that President Bola Ahmed Tinubu has at several fora made the direction of his policy thrust on job creations known to Nigerians, particularly as he on the day of his swearing in to power revealed a series of steps he would take to position the country on the path of economic development, stability, and prosperity.

Therefore, it will in this context be recalled that he promised to reduce unemployment and encourage the light industry, even as he also assured of promoting manufacturing and create one million jobs in the digital economy.

Not only did he on the day of his inauguration as Nigeria’s new president promised to create jobs for Nigerians, he emphatically said that Nigerians have high hopes for a better Nigeria after being plagued with a high rate of unemployment, lack of access to productive inputs such as finance, lack of sufficient government stimulus, changes in government policies and so on.

Given the foregoing, it is germane to recall that the four key takeaways from his inaugural speech concerning job creation cut across reducing the unemployment rate, encouraging light industry, promoting manufacturing and creating one million jobs in the digital economy.

He assured that his immediate target was to ensure a higher Gross Domestic Product (GDP) growth and enable a significant reduction in the unemployment rate, even as he equally promised that his administration hopes to achieve this through budgetary reform to stimulate the economy without prompting inflation.

It is also salient to recall in this context that he promised to work with the National Assembly to create omnibus jobs and prosperity bills that will give them the policy space to embark on labor-intensive infrastructural improvements and encourage light industry which will, in turn, create jobs.

Ostensibly disclosing the juicy benefits that are inherent in his bids, the president said the industrial policy he proposes will utilize the full range of fiscal measures to promote domestic manufacturing and lessen import dependency which will create jobs in the real sector.

He assured that technology is no doubt a fast-growing sector among the youths in Nigeria. Hence, the need for his administration to fulfil his campaign promise togenerate one million new jobs in the digital economy.

At this juncture, it is expedient for this writer to confess that he has been intrigued by Mr. President’s repeated assurance that emphasis would be place on light industry.

For the sake of clarity, light industry refers to manufacturing or production that does not involve heavy and capital-intensive products or equipment. It is a sector that can play a significant role in creating jobs and supporting local economies.

Not only is the federal government desirous of creating employment for Nigerians by throwing its weight behind the light industry, the presidency believes that patronage of made-in-Nigeria products is key to strengthening the naira and wants citizens to buy goods produced in the country to make that happen.

The Special Adviser on Media and Publicity to the President, Ajuri Ngelale, made the disclosure about the federal government’s plan in a press briefing with the State House Correspondents on Friday.

“One, His Excellency, President Bola Ahmed Tinubu wants to communicate very clearly to our people, that there has never been a more important time in our history to actively agree together,” he said.

“That we will patronize and purchase made-in-Nigeria products across all value chains across all sectors.”

He said this is one of the decisions taken by President Tinubu to ensure the continued strengthening of the Nigerian naira against other global currencies.

The President’s media aide also highlighted government interventions such as the presidential conditional grant scheme providing 1 million Nano enterprises with non-repayable grants up to N50,000 and N75 billion to 75 large manufacturers employing over 1,000 Nigerians each as some of the efforts the government is making to improve the lives of Nigeria.

He said the President is doing everything he can to ensure that he steps in to ease the burden on families while also ensuring that he holds the public sector and the federal government of Nigeria accountable for prudent spending.

This he noted, is demonstrated by ensuring a drastic cut down on travel expenditures, ensuring that with the temporary ban that is being put in place from April 1, 2024 on all unnecessary foreign travel, which will save over N5 billion per quarter.

Unfortunately, beyond the federal government’s bid to boost the economy through the empowerment of light industry, applications of austere measures across Ministries, Departments and Agencies (MDAs), and the promotion of products that were probably manufactured from such companies that are within the light industry sector, there is an urgent need for the government to tackle Nigeria's multi-decade long electricity problems that have worsened in recent months.

To the view of this writer, it is laudable that the government intends boosting the light industry sector, and promoting the purchase of home-made goods. However, not a few observers of the economy were of the view that the idea is noble, but on condition that there would be regular electricity supply.

Against the foregoing backdrop, it is important in this context to say that ensuring that regular electricity is supplied to small businesses cannot be dismissed with mere waves of the hands as electricity plays a critical role in the success and sustainability of small businesses.

For instance, regular electricity supply gives operators in the SME Sector of the economy the benefit of cost reduction: The foregoing view can be understood from the perspective of the fact that by optimizing energy use, small businesses can reduce operating costs and utility bills. This directly impacts the business’s bottom line, allowing for more competitive pricing and profitability.

In a similar vein, regular electricity enhances increased property value. The reason for the foregoing cannot be farfetched as energy-efficient practices can enhance the overall property value, making the business more attractive to potential buyers or tenants.

On this note, it is expedient to urge the government that while making moves to bring these laudable policies to realities that there is an exigent need for it to ensure that light industries are powered by regular electricity supplies.