BoI rallies support for value-addition, manufacturing

Rasheed Olaoluwa, MD BoI

Rasheed Olaoluwa, MD BoI

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TO further boost efforts of entrepreneurs in the agro-allied and processing sectors, the Bank of Industry (BoI) has urged the nation’s economic managers to support and encourage investments aimed at adding value to raw commodities rather than exporting them unprocessed.

Indeed, the Development Finance Institution (DFI) stressed that Nigeria must add value to its natural resources in its quest for economic diversification and industrialisation.

The Managing Director, BoI, Rasheed Olaoluwa, explained that per cap‎ita income of countries who take value addition seriously is higher when compared to economies that export their raw materials unprocessed.

The BoI boss who was represented by the Executive Director, SME, BoI, Waheed Olagunju during BoI special day at the 2015 Lagos International Trade Fair, said: “‎The value-addition model is a model which separates the rich countries from the poor countries. Industrialised economies’ per capita income is much higher compared to non-industrialised economies. ‎

‎”Their per capita income is much higher because of the value they add. There is no short cut to success. We just have to do things the right way. Oxfam came up with a study some years ago, showing that about a billion dollars is spent in one year buying cocoa from Ghana, Nigeria and the Ivory Coast where they added value to a tune of about 3 billion dollars generating sales of about 60 billion dollars. This is what creates the per capita income. Per capita income in those countries they buy cocoa from that year was less than a thousand dollars, where as in the country where value is added to the commodity and later exported to those countries they bought cocoa from, their per capita income is in double digits. This is why the quality of lives is much higher than the underdeveloped economies”.

He said Nigeria must add value to its natural resources especially in areas where the country has comparative advantage, noting that the bank is designing special products to support entrepreneurs in these areas.

“This is why we came up with about 35 clusters where the country has a competitive advantage that can be efficiently converted to competitive advantage.

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