Falling oil price: FG to commence comprehensive import substitution

The Federal Government is set to commence comprehensive implementation of import substitution programme to enhance local production of goods and services.

This is following the plummeting oil prices that has dwindled the country’s oil revenue.

This was disclosed by President Goodluck Jonathan while speaking at the Top 100 Businesses Award Dinner held at the Banquet Hall of the Presidential Villa, Abuja, on Monday.

In an obviously bold move to

save the nation’s economy, the president said the policy will finally make Nigeria self-sufficient

Import substitution industrialisation (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production. It is based on the premise that a country should attempt to reduce its foreign dependency through the local production of industrialised products.

Jonathan further disclosed that he has directed the Ministry of Industry, Trade and Investment to work with other relevant ministries and agencies, including the Central Bank of Nigeria (CBN) to execute a comprehensive investment and trade agenda that will increase the production of goods and services that has so far been imported into the country.

The president also disclosed that the Ministry of Industry, Trade and Investment and the CBN are already working with the Ministry of Petroleum Resources to cut down on the importation of finished petroleum products.

According to him, “We can no longer continue to export raw materials. We must produce what we consumer and consume what we produce. We must diversify our economy, even though we know no one nation is an island.”

The project, he said, will involve the Ministry of Agriculture cutting down the import of food products, and the Ministry of Mines and Steel cutting down imports of metal related products.

“In pursuit of this noble objective, I have directed the Federal Ministry of Industry, Trade and Investment to work with the Central Bank of Nigeria in the execution of a comprehensive investment and trade agenda to create local production to substitute unnecessary imports with our local goods”, he said.

The president, in obvious reference to the current over reliance on oil as the country’s major source of foreign exchange, warned that Nigeria can no longer rely on one commodity.

“This is to ensure our country becomes self-reliant and to cut down on imports which drain foreign exchange. This is a game changer because it will re-position us globally and rapidly boost our foreign reserves.

“I’m confident that if we are able to produce in Nigeria most of what we consume today, the bulk of investments required to make this happen will surely come from the top 100 companies,” he said.

Jonathan, who before his speech observed a minute silence for victims of the last terrorist attacks in Yobe and Borno states, commended the 100 listed companies for having faith in Nigeria despite the security challenges. He assured that Nigeria will overcome her challenges.

Businessday