ABUJA – The Central Bank of Nigeria (CBN) has called on telecom operators to invest in local manufacturing of critical equipment like SIM cards, cables, and towers, as part of efforts to reduce dollar dependency, create jobs, and stabilize the economy.
CBN Governor Olayemi Cardoso made the appeal during a meeting with Airtel Africa’s leadership, led by Group CEO Sunil Taldar, in Abuja. He emphasized that backward integration—producing key inputs locally—will help conserve foreign exchange and strengthen Nigeria’s industrial base.
Why Local Production Matters
✔ Reduces FX pressure – Cuts import costs, easing naira volatility.
✔ Creates jobs – Boosts employment in tech and manufacturing.
✔ Enhances security – Limits reliance on foreign supply chains.
Cardoso assured telecom firms of the CBN’s commitment to a business-friendly environment, citing recent reforms that have stabilized the forex market and attracted investors.
Airtel’s Response:
Sunil Taldar welcomed the CBN’s policies, affirming Airtel’s support for local content development and its commitment to expanding financial inclusion through digital services.
Nigeria Records $6.83B Balance of Payments Surplus in 2024
In a major economic turnaround, Nigeria’s Balance of Payments (BOP) swung to a $6.83 billion surplus in 2024—a sharp reversal from $3.34B and $3.32B deficits in 2023 and 2022, respectively.
Key Drivers of the Surplus
Trade Boost – Goods trade surplus hit $13.17B, fueled by:
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48.3% surge in gas exports ($8.66B)
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24.6% rise in non-oil exports ($7.46B)
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Declining imports (petroleum imports fell 23.2%)
Strong Remittances – Diaspora inflows rose 8.9% to $20.93B, with IMTO transfers up 43.5%.
Investor Confidence – Portfolio investments more than doubled to $13.35B, while reserves grew by $6B to $40.19B.
“This surplus reflects Nigeria’s economic resilience and effective policymaking,” said Cardoso.
CBN Urges Nigerian Manufacturers to Compete Globally
Despite progress, the CBN warned that Nigerian products still struggle internationally due to:
Poor packaging & branding
Inconsistent quality standards
High financing costs (manufacturers paid N1.3T/$810M in interest in 2024)
Solutions Proposed:
Capacity building for exporters
Tech investments to improve quality
Better collaboration between banks and manufacturers
MAN President Francis Meshioye criticized Nigeria’s high-interest rates (35-37%), urging the CBN to provide long-term, low-cost financing for manufacturers.
Key Takeaways
Local telecom production can save dollars and create jobs.
Nigeria’s BOP surplus signals economic recovery.
Manufacturers need better support to compete globally.
