The Director-General of the National Board for Technology Incubation (NBTI), Mr Akinwumi Somefun, said that import substitution will lead to Nigerian industrialization, strengthen the economy and create more jobs for the unemployed.
Somefun disclosed this on Thursday, January 5, during an interview with the News Agency of Nigeria (NAN) in Abuja.
Import substitution would also entail the consumption of locally sourced raw materials which would ultimately help to sustain the supply chains.
Importance of import substitution: According to the Peterson Institute for International Economics (PIIE), import substitution is the idea that blocking imports of manufactured goods can help an economy by increasing the demand for domestically produced goods.
Somefun urged Nigerians to substitute imported goods with Made-in-Nigeria products to bolster the Federal Government’s policies on industrialisation and economic growth.
He added patronising local goods and services will boost the nation’s revenue as well as reduce capital flight.
“It would strengthen the economy and create more jobs for the unemployed.
”Nigerian products are produced from the locally sourced raw materials which would sustain the supply chains.
“ More consumption of our own indigenously produced goods will bring about more employment opportunities, keep the supply chains going and increase economic efficiency and earnings.
He also revealed that most of the products produced at the NBTI incubation centres are well packaged, with high quality and exported which earns us foreign exchange.
What you should know: Recall that Nairametrics reported last year that Vice President, Yemi Osinbajo warned that blanket import restrictions are a dampener on economic activity because a lot of items that might be needed in the manufacturing process might be affected with a consequent negative impact on value addition in the economy.
According to him, importation is not a problem, as what matters is what value is added to the imported products before they reach Nigerian consumers.