Nigerians told to #BuyNaija as economy battles falling oil prices

Nigerians are known for their love of foreign goods. At parties revellers often throw dollar bills over each other, the middle classes have a penchant for Japanese cars and almost everyone relies on imported generators to cope with constant power cuts. But the fall in global oil prices to $33 a barrel in February has put Africa’s biggest economy, heavily reliant on its oil exports, under acute strain. The value of Nigeria’s currency, the naira, has plummeted in recent weeks, leading the central bank to impose foreign exchange restrictions that have hit small businesses hardest. Nigerians are now being urged to buy local goods to support homegrown manufacturers as part of a heavily promoted social media campaign #BuyNaijaToGrowTheNaira. But Minas Mastrogiannis, who owns a café on Lagos Island, says though his import costs have risen by more than 50% he can’t switch to local goods because they simply don’t exist. “With the exception of our beers and soft drinks, everything is becoming more and more expensive,” he says. “Our tea, coffee, our wine – so many of our materials are imported.” Nigeria is Africa’s second largest tomato producer with 1.5 million tonnes of tomatoes annually, yet 45 percent of the produce will often perish. Facebook Twitter Pinterest Nigeria is Africa’s second largest tomato producer with 1.5 million tonnes grown annually, yet 45% will often perish. Photograph: STRINGER/Reuters Onaola Ajayi, who runs a security firm in central Lagos, also says he can’t “buy Naija”. He works with alarms systems and surveillance equipment – none of which is made in Nigeria. “It’s ridiculous,” he says. “They’re telling us to not to import without creating the conditions to thrive in the current market, and whilst knowing that Nigeria is frankly a weak manufacturer.” Ajayi says he currently imports around 90% of his equipment from South Africa. “I would love to buy it here, but the fact is I simply can not.” #BuyNaija Ben Murray Bruce, an outspoken senator supporting the campaign, said that Nigeria’s taste for foreign imports is a question of loyalty. “The leaders are not patriotic,” the former businessman said in a recent interview with al-Jazeera. “All they care about is a Gucci bag, a Rolex watch, and a trip to Dubai.” But the central bank’s forex restrictions reflect the government’s increasingly critical stance on foreign goods. President Muhammadu Buhari said in January it was disgraceful that Nigeria still imported basic items “such as tomatoes and toothpicks”. In March the senate proposed a legal amendment which would ensure local manufacturers are given first consideration in deals with government institutions. Yet business owners say the #BuyNaija message contrasts sharply with the manufacturing reality in a country heavily reliant on imports, and that their appetite for foreign products is spurred on by pragmatism. Advertisement “The efforts to promote buying locally made goods are no doubt well-intentioned,” says Cheto Manji, a financial analyst focused on sub-Saharan Africa. “But, unless Nigerian-made goods satisfy customer needs, the ‘buy Nigerian’ advocacy will remain an exercise in futility.” Manji says the issue points to a wider economic problem: despite its agricultural potential, Nigeria spends over $5bn every year importing food. Of the 84m hectares of arable land in the country, less than half is cultivated for agricultural use. So whilst the need to increase local production is broadly welcomed, many are sceptical of the current manufacturing potential. Nowhere is the paradox of Nigeria’s import and export economy clearer than its production of oil. Despite being Africa’s biggest oil producer, the country still imports the majority it uses domestically. Similarly, the country grows 1.5m tonnes of tomatoes annually but more than $360m is thought to be spent by consumers on tomato products, like puree, imported from Asia and Europe. For people like Mastrogiannis, the future is uncertain. “This is has been the worst month we’ve had since we started our business,” he said. “All our import costs are up. If this continues I’m not sure how we’ll go on.”Thanks for reading,

Share: