By Chinwendu Obienyi

 The Federal Government through the Ministry of Trade and Investment and the Central Bank of Nigeria (CBN) have called on the European Union (EU) to seek ways of directing grants and subsidies to the nation’s real sector to promote inclusive economic growth.

This was even as they  called on investors and manufacturers to apply for the backward Integration Programme (BIPC) currently in the process of being  automated.

 Speaking at the 8th edition of the EU-Nigeria Business Forum themed; “Nigeria and the New Economy” held  in Lagos yesterday, the Governor, CBN, Godwin Emefiele, said that the government had in 2002, adopted and implemented selected backward integration and regulation policies to chart a common cause in fostering economic growth.

While noting that the cement industry was the first in adopting the backward integration policy, Emefiele, who was represented by the Director, Trade and Exchange Department at CBN, Dr Ozoemena Nnaji, said that domestic production of cement few years ago was at 20 per cent but noted that the narrative has changed as Nigeria not only produces but export cement to other countries.

He said, “We have been able to meet our local consumption and the total cement production output of 2 million metric tonnes annually increased to 45 metric tonnes and that is one success of backward integration in Nigeria. We can also talk of success in the agro sector and Danone is an example of a company producing milk in Nigeria. We had a lot of pushbacks when we came up with that policy but we have seen Danone as a success story and we want others in the dairy industry to key into this backward integration initiative as business and collaboration is most beneficial when it is mutual and not a one sided trade”.

The CBN boss added “We have success stories in Flour Mills as well and so you can see that backward integration policy  is a good thing when it is implemented in a strategic business environment and that is why this administration has always been committed in making Nigeria self-sufficient”

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According to him, the CBN’s RT 200 FX programme holds vast potential to displace imported raw materials into the country’s industrial production sector.

“Going forward, the EU plans to invest in Nigeria and Nigerian companies and I want the EU to take a cue from what Danone has done. Backward integration is good for both home, host countries and growing economies like Nigeria.

“Yes, we value the grants and subsidies given to Nigeria but we will value it more when those grants and subsidies are directed to productive sectors which will give us more employment, reduce insurgency and promote inclusive economic growth for the country”, Emefiele said.

 For his part, the Minister of Industry, Trade and Investment, Otunba Niyi Adebayo, who was represented by the Permanent Secretary, Dr Evelyn Ngige, described the backward integration initiative as key to reducing poverty and ensuring enhanced service delivery in a manner to stimulate growth for the domestic economy.

 According to Adebayo, backward integration means increased local sourcing of inputs and is a strategy of the government to strengthen the industrial sector.

“Hence, all investors/manufacturers can apply for the BIPC initiative. We are also working on automating the process to further give credence and transparency for the issuance of the certificate”, the Minister said.