In a compelling call to action, Mitchell Elegbe, the Managing Director of Integrated Vehicle Management (IVM), has thrown his weight behind the federal government's 'Buy Nigerian' initiative while simultaneously exposing critical bottlenecks within the banking sector that are severely hampering local manufacturers.
The Push for Local Content Reinforcement
Elegbe passionately argued for a more robust implementation of the local content policy, emphasizing that Nigeria possesses the capacity to produce numerous goods currently being imported. He highlighted the urgent need to strengthen policy frameworks to actively support and protect domestic industries from unfair foreign competition.
Banking Sector: A Major Stumbling Block
The IVM boss didn't mince words when addressing the financial challenges facing Nigerian businesses. He pinpointed several critical areas where the banking industry is failing local enterprises:
- Prohibitive Interest Rates: Elegbe lamented that borrowing costs remain excessively high, making it nearly impossible for manufacturers to access affordable capital for expansion and operations
- Inadequate Loan Tenure Structures: He criticized the mismatch between loan durations and business cycles, noting that most facilities don't align with manufacturers' long-term investment needs
- Limited Understanding of Manufacturing: The IVM chief observed that many financial institutions lack deep comprehension of manufacturing processes and requirements
- Collateral Demands: He highlighted how stringent collateral requirements continue to stifle business growth and innovation
Competitiveness Crisis in Local Manufacturing
Elegbe painted a stark picture of the challenges Nigerian manufacturers face in competing with international counterparts. He emphasized that without addressing fundamental structural issues, particularly in the financial sector, the 'Buy Nigerian' campaign would struggle to achieve its intended impact.
"The playing field needs to be leveled," Elegbe stated, "and this begins with creating an enabling environment where local businesses can access funding under reasonable terms that support rather than hinder their growth."
Pathway to Economic Resilience
The manufacturing leader stressed that solving these banking sector challenges is not just about supporting individual businesses but about building national economic resilience. He called for collaborative efforts between the government, financial institutions, and the private sector to develop sustainable solutions that would make Nigerian products truly competitive both domestically and internationally.
Elegbe's commentary serves as both an endorsement of government policy and a urgent wake-up call about the systemic barriers preventing Nigerian businesses from reaching their full potential in the national and global marketplace.
