NESG Supports Stabilisation Fund for Real Sector and Discos Recapitalisation

The Nigerian Economic Summit Group (NESG) has endorsed the proposed stabilisation fund aimed at providing single-digit interest rate loans to boost Nigeria’s manufacturing sector.

Speaking during a media session on Friday, NESG CEO, Dr. Tayo Aduloju, emphasized the critical role of industrialisation in Nigeria’s economic development, calling for coordinated actions to achieve this goal.

“Industrialisation requires several elements working together. First, we must commit to industrialisation focused on exports. The current macroeconomic environment supports an export-led strategy,” Aduloju noted.

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He highlighted the need for targeted financial support for manufacturers to revitalize the sector.

“We fully back the manufacturing stabilisation fund, a single-digit, long-term interest rate facility designed to help manufacturers refinance their balance sheets, secure working capital, procure raw materials, and create jobs. The manufacturing sector is labour-intensive, and its contraction leads to fewer job opportunities. Industrialisation is essential to reversing this trend,” he stated.

Aduloju’s call for action aligns with the stance of the Minister of State for Industry, Senator Owan Enoh. During a stakeholders’ meeting on Wednesday, Enoh unveiled plans to establish a workgroup dedicated to industrialisation.

This group, described as a “war group” for an industrial revolution, will be co-chaired by the minister and the President of the Manufacturers Association of Nigeria, Francis Meshioye. It will meet regularly and consult widely to drive industrial policy.

Aduloju also pointed to improvements in Nigeria’s foreign reserves, attributing them to the unification of exchange rate regimes.

“Previously, the multiple exchange rate system subsidised FX for some, with gains accruing outside government reserves. Now, the government is benefitting, which is reflected in reserve growth, creating a foundation for FX stability. However, inflationary pressures, particularly around Christmas, must be managed,” he cautioned.

Addressing the energy sector’s challenges, Aduloju called for financial interventions across the electricity value chain, from generation to distribution.

“The electricity sector requires significant investment and blended finance solutions—not just debt. We must recapitalise distribution companies (DisCos) and attract foreign direct investments to improve the infrastructure, which is currently inadequate,” he explained.

Aduloju warned that without market-reflective tariffs, attracting investors would remain difficult.

“To achieve this, subsidies on electricity tariffs need to be gradually removed. We must transition to a system where improved infrastructure enables reliable power supply, adequate revenue collection, and a capitalised DisCo structure capable of attracting investments,” he concluded.

The NESG’s position underscores the importance of integrated efforts in driving industrialisation, stabilising the economy, and addressing Nigeria’s energy challenges