CPPE: Reducing Structural Cost of Doing Business, Ensuring Export Competitiveness Foremost Objectives of Industrial Policy

Reducing the structural cost of doing business and ensuring export competitiveness should be the paramount objectives of Nigeria's industrial policy, according to the Centre for the Promotion of Private Enterprise (CPPE). The organization argues that international markets favor firms that consistently offer competitive prices, high quality, reliable supply, and timely delivery while adhering to global standards.

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Taken together, these five pillars constitute more than an industrial policy framework. They provide a national competitiveness strategy capable of transforming manufacturing into the principal engine of productivity, investment, exports and inclusive economic growth.

Muda Yusuf, the Chief Executive Officer of CPPE, presented a framework for Nigeria's manufacturing strategy, emphasizing five interconnected pillars. These include competitive production costs, enhanced productivity and innovation, a robust value chain, strong export competitiveness, and supportive institutions that foster enterprise. Yusuf believes these pillars collectively form a national competitiveness strategy capable of transforming manufacturing into a primary driver of productivity, investment, exports, and inclusive economic growth.

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these are not theoretical constructs. Rather, they reflect the practical experience of economies that have successfully industrialised. Together, they provide a comprehensive framework for lowering production costs, raising productivity, strengthening industrial capability and positioning Nigerian firms to compete successfully within Africa and global markets.

Yusuf asserted that achieving sustained competitiveness in manufacturing hinges on the economics of production. He highlighted that unreliable electricity, high logistics expenses, costly financing, and numerous regulatory charges create structural disadvantages that can overwhelm a firm's internal improvements. Therefore, he concluded, lowering these structural costs must be the foremost objective of industrial policy. This entails ensuring dependable and affordable electricity, efficient transportation networks, modern port facilities, reduced logistics expenses, accessible long-term industrial finance, predictable taxation, and streamlined regulations. These elements, he noted, constitute the essential competitiveness infrastructure upon which productive enterprises depend.

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No manufacturing economy can achieve sustained competitiveness where firms face unreliable electricity, high logistics costs, expensive finance, multiple regulatory charges and deficient infrastructure. Under such conditions, improvements within individual firms are often overwhelmed by structural disadvantages beyond their control.