MADE ABROAD-Why Nigeria  Still Can’t Build What It Uses-By Tunde Idowu

At the Computer village in Lagos a technician opens a brand  new smartphone box. ‘Made in Vietnam’,the label reads.

 

Across town, a car dealer parks a ”brand new SUV. ”Assembled in Nigeria, ”the sticker says,-but  the engine ,gear box and computer chips all came from China.

 

Nigeria has over 200 million consumers,  a booming  tech scene , and engineers graduating  every year. Yet, when it comes to building  the thing we  use daily-cars from scratch, phones, robots, industrial machines-we still import the finished products. The question isn’t  if we have talent . The question  is ”Why can’t we manufacture?

 

This takes us to the issue or the historical dependence on foreign products or foreign countries before we take any leap.

Nigeria’s import  bills tells the story. According  to  NBC data, the country spent over $40 billion dollars in the last 5 years importing machinery , vehicles, and electronics. Phones, laptops, medical equipment , and even agricultural robots all arrive  in containers and get  sold as  ”finished”.

 

We have software startups raising  millions. We have  fintech serving 40  million users. But in hardware, we’re still at the starting line.

Innoson can build  vehicle bodies in Nnewi, Nord assembles SUVs in Lagos. Yet  no Nigerian car runs  on an engine , transmission , and chip all made here. No Nigerian  phone brand  owns  its own  chip  fab or screen factory.

 

 

Compare that to Morocco, which now exports  cars to Europe. Or Rwanda ,which  assembles smartphones locally . Or  Vietnam,  which went from  rice farms  to Samsung factories  in 20 years.  What are they doing  that we are not doing?

 

 

At this juncture, let  us pause , to  locate Nigeria and Nigerians challenges- The first on the list is Infrastructure.  The silent Tax  Talk  to any manufacturer and  you will hear  a response, the same  word.-POWER. To run  a factory that makes engines or circuit boards , you need 24/7 electricity, clean water, and predictable logistics.

 

In Nigeria, that means generators.  A mid-sized electronic plant in Ogun State spends  an estimated 34-40 % of operating costs on diesel . That  money should  go to Research and Development(R&D). Instead,  it buys fuel.

 

Internet and Port Delays add another cost. A container  can sit  at Apapa for weeks .  By the time  parts  arrive, the cost  has doubled . So , companies  choose  the easier path-Import the finished  phone instead  of 200 components.

 

You can’t build a  Car  with just  one factory. You need  about 300 suppliers. Steel, plastics, glass, wiring, chips. That’s what economists call an ”Ecosystem”.

 

Countries like China and India built this over  decades. Nigeria skipped that step . We went straight  to importing. So ,even when  a company wants to ”manufacture” here,80-90% of the value  is still imported. That’s assembly, not manufacturing.

 

Our Universities produce  great computer scientists, but we have  very few  tools-and die makers, precision welders, and robotics technicians. The curriculum  is theory -heavy .  The workshops are  empty.

 

 

There is also a market problem. Many  Nigerians assume ”Made in Nigeria”, means  ”inferior”. So even, a locally  built phone  or car has to fight perception , while  an imported  used product is seen as  premium. Research and panoramic exercise by ”The Innterviews Nigeria” indicate that  INNOSON Vehicle Manufacturing  Company at Nnewi proudly builds buses and SUVs. But  interview Engineers  and they ‘ll tell you the engines , gear boxes, and ECUs are imported. It’s  Completely Knocked  Down(CKD) assembly. Still important , but  not full  manufacturing.

 

Phone Assembly in Lagos – A few  companies now assemble phones and laptops locally to get  government  contracts. But screens,  chips, and batteries all come from Asia.  The value added in Nigeria is less than 100%.

 

 

 

NASENI has shown  working  prototype  of ROBOTS  and farm equipment. The challenge  has been moving from prototype  to 10,000 units at a price  people can afford.

 

 

With this,  who  benefits From Status  Quo? This is where  investigative  reporting  gets uncomfortable. Importers, Clearing  Agents , and dealers make money  on every  container. A manufacturing base  would  disrupt that. Multiple taxation, by States and agencies also make local production expensive. So, the system , intentionally, or not favours importation.

 

 

What can be done to ameliorate this ugly and slavish trend?

 

 

Nigeria should fix the basics first. There should be 24/7 power clusters and industrial parks. Morocco did this with Tanger Med.

 

 

The government should protect and nurture  the sector  Temporary  Tariffs and guaranteed government purchase  to help  the local factories reach scale.

 

 

And finally, Nigeria should  build the ECOSYSTEM, adequate funding  of Technical Colleges and suppliers Parks; it is not  just one  big factory .

 

 

All these are spelled out  in Nigeria’s National  Development  Plan(2021-2025).

 

In a nutshell,  a nation  that cannot  build  what it uses will always be price-takers. Every depreciation of the  Naira makes  our  phones  and cars more expensive. Every  global supply  chain shock  leaves  us exposed.

 

 

We don’t lack brains.   We lack factories, power and policy consistency. Until we treat manufacturing  as national security, not just business, the boxes at the Computer Village  will keep reading ”Made Abroad”.

 

 

Tunde Idowu is a Dev. Communicator and the Editor-In-Chief,

The Interviews Nigeria

 

By TheInterviewsNigeria

Publisher/Editor -in Chief with more than a decade of working in the media production industry, Our preoccupation is Development News and rooting for innovation locally and internationally. We are British trained Business English PRO. We edit manuscripts for book publication, translation(English/Yoruba/French). We cross your 't's' and dot your 'i's. We are also into speech draftsmanship and photography; Business reports, and proposals, with minimal cost. Meeting the deadline is our watchword. We would cover your Social /Public events with precision. The proof of the pudding is in the eating. Call-08144956897, 08057355037 E-mail- theinterviewsng@gmail.com, akintunde.idowu@gmail.com

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