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SME Guide

Made in Aba: How Local Manufacturing is Driving Abia’s Economy

The southeastern city of Aba in Abia State has long been known as a major manufacturing hub in Nigeria. Home to a strong entrepreneurial spirit, Aba is filled with skilled artisans, traders, and small businesses producing a wide range of goods. From shoes and clothes to machinery parts and plastics, “Made in Aba” products have earned a reputation across West Africa for quality and affordability.

In recent years, efforts by both the government and private sector have focused on reviving Aba’s local manufacturing base to spur economic growth and job creation. The Made in Aba initiative is strengthening capacities, promoting brands, and working to transform the city into an industrial powerhouse once again.

The Rise of Manufacturing in Aba

Aba has been a centre of manufacturing since colonial times due to its location as a key trading post. Early factories produced goods like soap, beer, soda, and corrugated sheets. However, a number of factors caused an industrial decline after Nigeria’s independence. The Nigerian civil war, poor infrastructure, flooding, congestion, improper waste disposal, and competition from imported goods created immense challenges.

Efforts to revive manufacturing in Aba began in the early 2000s with increased government investment in the city paired with private sector participation. Manufacturers formed industry clusters and cooperatives to address shared problems and boost productivity.

Key growth drivers

Several factors have enabled the resurgence of Aba as a manufacturing destination, including policy support, infrastructure upgrades, and increased financing access.

Supportive government policies

  • Tax incentives, export promotion strategies, and funding schemes by Abia State to boost local companies
  • Programmes facilitating skill acquisition, like the Abia State Entrepreneurship Development Centre.
  • Initiatives by the¬†Central Bank of Nigeria (CBN) to improve access to capital for MSMEs.

Infrastructure Investments

  • Road construction projects in Aba are easing transport bottlenecks and congestion.
  • Expansion of industrial layouts and markets providing purpose-built facilities
  • Upgrades to power, water, and waste management infrastructure

Access to Finance

  • CBN special funds and low-interest loans are targeted at the real sector.
  • Government grants and subsidised loans for small businesses
  • Growing venture capital and angel investors interested in high-potential sectors.

Major Manufacturing Clusters

Aba’s manufacturing landscape consists of numerous industry clusters and commercial centres, including:

Ariaria International Market

  • One of the largest leather goods and shoe-making clusters in West Africa is located in Aba.
  • Over 30,000 traders and artisans produce shoes, bags, and belts using local and imported materials.
  • Major shoe brands have production capacities in Ariaria. Most machinery and tools are fabricated by local engineers.

Azikiwe Road

  • The hub for authentic Aba-made textiles and apparel, like the famous ‘Aba-made’ shirts and uniforms.
  • Skilled tailors and designers churn out clothes with power sewing machines. Many traders source cloth from within Aba.
  • Azikiwe Road is also known for household goods like curtains, bedding, and towels produced by SMEs.

Jubilee Road Automotive Parts Cluster

  • a specialised cluster housing auto part traders, mechanics, and machinists.
  • Brake pads, gears, batteries, and shock absorbers are manufactured or assembled here from scrap materials.
  • Equipment like lathes and drilling machines is used to fabricate custom auto components.

Plastics and Petrochemical Zone

  • Plastics manufacturers line the Aba-Owerri Road. Products include PVC pipes, water tanks, chairs, bowls, and packaging.
  • low-cost facilities using locally sourced inputs and technology. Products cater to both consumers and industries.
  • Major proximity to Port Harcourt refineries providing raw materials.

Strategies to further boost manufacturing

More government and private sector initiatives are still required to nurture Aba’s manufacturing renaissance.

Improving power supply

  • Upgrade energy infrastructure and increase generation to ensure affordable, reliable electricity.
  • Offer subsidised solar equipment to SMEs to cope with grid outages.

Developing Industrial Parks

  • Establish new purpose-built parks with modern facilities to decongest existing clusters.
  • Provide subsidised units, shared equipment, and support services to manufacturers.

Simplifying business regulations

  • Digitise the application and approval processes for registrations, permits, and loans.
  • Introduce tax holidays, exemptions for new enterprises, and strategic sectors with high job potential.

Facilitating export capabilities

  • Assist manufacturers in meeting international standards and certifications.
  • Provide incentives for participation in overseas expos and online export platforms.
  • Leverage AGOA and other bilateral agreements for trade partnerships.

Impact on the State Economy

The renewed focus on local manufacturing has produced tangible benefits for Abia’s economy, including:

Job Creation

  • Thousands of new direct and indirect jobs stem from the growth in production.
  • Gainful employment opportunities have reduced youth restiveness and crime levels.

Enterprise Development

  • More entrepreneurs and MSMEs are attracted to manufacturing as a viable business.
  • Existing operations are scaling up capacity and capabilities.

Revenue Generation

  • Growing tax contributions from revitalised industries.
  • Rise in Pay-As-You-Earn (PAYE) collections and tenement rates

Poverty Reduction

  • Greater incomes for skilled workers previously unemployed or underemployed.
  • More disposable household budgets are circulating to uplift living standards.

Multiplier Effects

  • Expansion in supporting sectors like packaging, logistics, and retail.
  • New business and skill development opportunities are emerging.

Made in Aba goods are now found across Nigeria and internationally, with branding playing a key role. Concerted efforts to maintain local production and address bottlenecks will see Aba reclaim its position as the Japan of Africa once more. By leveraging its human capital and entrepreneurial zeal, Abia can drive broader economic transformation.

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