Coleman Technical Industries Limited has expressed concerns that Nigeria is losing significant export opportunities, jobs, and investments due to the underutilization of local manufacturing capacity. The company's managing director and chief executive officer, Mr. George Onafowokan, stated that unfavourable policies and structural challenges are hindering the full utilization of production capacity. This has resulted in a substantial loss of potential revenue and economic growth for the country.
Coleman Technical Industries has invested heavily in various manufacturing facilities, including high-voltage cables, fibre optics, and copper processing. However, most of these plants are operating far below installed capacity. Specifically, the company's high-voltage cable facility, which was invested in 2014, is currently operating at less than 10 per cent capacity. Overall, utilization across its expanded facilities is about 20 per cent, indicating a significant underperformance.
The fibre-optic facility, which has the capacity to supply Nigeria and a substantial part of the African market, is not being utilized to its full potential despite huge investments. According to Onafowokan, the company has invested more than $60 million in its fibre-optic operations, with part of the investment supported through funding from the Bank of Industry, FCMB, and InfraCredit. This underutilization is a significant loss for the company and the country.
Despite the challenging operating environment, Coleman Technical Industries has remained committed to investing in Nigeria as a private business. The company has continued to expand its operations, demonstrating its confidence in the country's potential for growth. Onafowokan noted that Nigeria has the potential to become a major exporter of cables and other industrial products if existing production capacity is properly utilized.
The full utilization of production capacity would create thousands of additional jobs, increase tax revenue, and boost Nigeria's export earnings. Stronger local manufacturing is critical to ensuring that Nigerian companies can take advantage of opportunities arising from major industrial projects and compete in regional and international markets. This would have a positive impact on the country's economic growth and development.
Coleman Technical Industries has demonstrated its technical capacity to meet specialized industrial requirements for complex projects. For example, the company supplied cables for Seplat's Yoyo offshore platform. However, manufacturers need a more supportive policy environment to expand their participation in local and export markets. This includes tariff reforms, local content enforcement, and export incentives.
Onafowokan urged the federal government to be more deliberate in creating and supporting large-scale Nigerian businesses that can compete globally and drive economic growth. The government, particularly the Ministries of Finance and Industry, Trade and Investment, should implement policies that support the growth of the manufacturing sector. This would enable Nigerian companies to compete effectively in the global market and contribute to the country's economic development.
Key points
- Nigeria's cable manufacturing sector is operating below capacity, resulting in lost export opportunities, jobs, and investments.
- The underutilization of production capacity is due to unfavourable policies and structural challenges.
- Proper utilization of existing production capacity could create thousands of jobs, increase tax revenue, and boost Nigeria's export earnings.
