By

Michael K. Bielonwu, MCIArb.,
Jeremiah E. Aneji, MIDR.
C. B. Opara, Esq.
Chioma S. Nmezi, Esq.

PART 1:.

The recent report by the World Bank revealing a drastic plunge in Nigeria’s manufacturing exports highlights the urgent need for legal intervention to revive the country’s struggling manufacturing sector. The significant decline of 166% from ₦2 trillion in 2019 to ₦778.4 billion in 2023 is a troubling trend that requires legal expertise to address the underlying issues.

Several legal pitfalls have contributed to Nigeria’s manufacturing sector’s dismal state of affairs. One key challenge facing manufacturers is the burden of multiple and overlapping regulations that stifle innovation and growth. Inconsistent regulatory practices, cumbersome bureaucratic procedures, and a lack of clear legal frameworks have deterred both local and foreign investors from actively participating in the manufacturing industry.

Inadequate protection of intellectual property rights has also hindered the growth of the Nigerian manufacturing sector. Without proper legal mechanisms to safeguard intellectual property, manufacturers risk losing their innovations to counterfeiting and piracy, losing competitiveness and decreasing export opportunities.

Additionally, the lack of enforcement of contractual obligations and inefficient dispute resolution mechanisms have discouraged investors from engaging in long-term partnerships and collaborations in the manufacturing sector. Uncertainty regarding legal recourse in case of contract breaches and disputes has eroded trust and confidence in the business environment, further hampering the sector’s growth.

To revive the manufacturing sector and increase export activities, legislation that addresses these legal pitfalls is urgently needed. First and foremost, streamlining regulatory processes and eliminating redundant regulations will create a more conducive business environment for manufacturers to thrive. Clear and transparent legal frameworks that provide certainty and predictability for investors are essential to attract both local and foreign investments in the sector.

Moreover, strengthening intellectual property rights protection through updated laws and effective enforcement mechanisms will incentivize innovation and creativity within the manufacturing industry. Creating specialised courts or tribunals to handle intellectual property disputes can expedite the resolution process and protect manufacturers’ innovations.

Furthermore, establishing efficient and reliable dispute resolution mechanisms, such as arbitration and mediation, can facilitate quick and cost-effective resolution of commercial disputes, thereby promoting trust and stability in business relationships in the manufacturing sector.

In conclusion, legal reforms are crucial in reviving Nigeria’s manufacturing sector and boosting export activities. It is imperative to advocate for legislative changes that create a supportive legal environment for manufacturers to thrive and contribute to the country’s economic growth. By addressing the legal pitfalls that have led to the manufacturing export plunge, Nigeria can unlock the potential of its manufacturing industry and position itself as a competitive player in the global market.