BUA Group Chairman Abdul Samad Rabiu has challenged the Federal Government to create an environment that enables Nigeria to produce at least 100 more companies like BUA warning that high borrowing costs unreliable infrastructure and inconsistent government policies are holding back industrial growth.
Rabiu said Nigeria could not build a strong manufacturing economy if businesses could not secure affordable long-term funding or plan their investments with confidence beyond a few years.
Speaking at the Nigerian Economic Summit in Abuja on Monday the industrialist said the country needed to move beyond economic reforms and create the conditions for businesses to expand establish factories employ more Nigerians and compete in international markets.
‘The question we must ask ourselves is not simply how BUA can continue to grow. It is how Nigeria can create another 100 BUAs’ he said.
He explained that the country needed more large businesses across manufacturing agriculture mining technology and other productive sectors to generate employment support smaller suppliers increase exports and strengthen the economy.
Rabiu argued that Nigeria’s industrial future should not depend on a small number of established companies. Instead government policies should encourage more businesses to grow from small operations into major enterprises capable of investing billions of naira in production and creating jobs on a large scale.
He said this would require a more predictable business environment affordable financing and infrastructure that allows manufacturers to produce and distribute goods at competitive costs.
‘We cannot expect businesses to make 20-year investments if they cannot plan with confidence beyond the next few years’ he said.
The BUA chairman explained that industrial investments require substantial spending before companies begin to earn returns. Businesses must acquire land build factories buy machinery train workers and finance production with some investments taking 10 to 20 years to reach their full potential.
He said such projects cannot be financed mainly with expensive loans that must be repaid over short periods.
‘You cannot build a strong industrial economy primarily with expensive short-term finances’ Rabiu said.
He called for a stronger financial system that provides businesses with long-term capital at affordable rates arguing that the country must find better ways to direct domestic savings toward productive investments.
He said pension funds insurance companies banks development finance institutions and the capital market all play important roles in providing the funding needed for industrial expansion.
Such funding would help businesses plan for the long term increase production capacity and undertake projects that may not generate immediate returns but could deliver significant economic benefits over time.
Rabiu’s call comes as manufacturers continue to balance borrowing costs with the need to invest in equipment expand factories and maintain production.
He said financing alone would not solve the problem if businesses continued to face unreliable electricity poor transport links and uncertainty over government policies.
While calling for improvements in the business environment Rabiu supported changes to Nigeria’s foreign exchange system saying the market-based approach made it easier for businesses to obtain foreign currency.
He recalled that he previously had to visit the Central Bank of Nigeria every two weeks to seek foreign exchange allocations for business needs.
Under the earlier arrangement he said an attractive official exchange rate did not necessarily mean companies could obtain the dollars they needed.
He said he preferred a transparent market where businesses could access foreign exchange at prevailing rates and plan their operations with greater certainty.
‘As an industrialist I’d rather operate in a transparent market where I can plan than in a system where the official rate appears attractive but foreign exchange is unavailable because certainty gives businesses the confidence to invest’ he said.
His position reflects the importance of predictability to manufacturers particularly those that need foreign currency to import machinery spare parts and other production inputs.
However Rabiu acknowledged that the government’s economic reforms had increased pressure on households and businesses with many Nigerians still struggling with the cost of living and companies facing high operating expenses.
‘Of course high financing costs infrastructure gaps and pressures on household incomes remain serious challenges’ he said.
He urged the government to ensure the reforms translate into higher domestic production more jobs and improved living standards.
Rabiu also called for investment in roads railways electricity and logistics saying moving goods across the country must become cheaper and more efficient if Nigerian manufacturers are to compete successfully.
He said factories should be able to supply customers across Nigeria and reach export markets without being held back by poor transport links and high distribution costs.
‘Infrastructure is not simply about building roads and railways; it is about building one connected competitive Nigerian economy’ he said.
Better transport networks would enable manufacturers to move raw materials to factories and finished products to markets more efficiently. Reliable electricity would also help reduce the cost of production and make locally manufactured goods more competitive.
Rabiu further called for greater processing of Nigeria’s agricultural produce and mineral resources within the country rather than relying on exports of raw materials and importing finished products.
He cited cement manufacturing as an example of how investment in domestic production could reduce dependence on imports and strengthen local industrial capacity.
Expanding local processing he said would create opportunities for farmers miners manufacturers transport operators and other businesses connected to production and distribution.
To address the challenges facing businesses the BUA chairman proposed an economic accord built around five priorities: stable government policies productive investment human capital development affordable long-term financing and shared prosperity.
He said the government must provide the policy environment and basic infrastructure needed to encourage investment while businesses must respond by building factories developing farms expanding production and creating employment.
Investment in human capital is also necessary to ensure that businesses can find workers with the skills required to operate modern factories and support the growth of productive industries.
Rabiu said the objective should be to build an economy where businesses can expand workers can earn income and more Nigerians can benefit from economic activity.
He urged the government to measure the success of its reforms by the changes they bring to citizens’ lives rather than by policy announcements or economic figures alone.
‘The reforms we have taken must now lead to more factories more jobs more competitive businesses and better lives for our people’ he said.