Managing Director, Coleman Wires and Cables Industries Limited, Mr. George Onafowokan, has spoken up about the pressing need for policy consistency, long-term planning, and legacy-building among Nigerian industrialists.
He recently warned that failure to do so might result in Nigeria stalling its industrial future.
Speaking during an interview over the weekend, Onafowokan revealed that Nigeria is currently in an era of declining interest rates after months of aggressive hikes, and the era is presently becoming the new normal.
“Most central banks do not immediately slash rates. They hold, and then hold again, before a drop comes. Now that the signs are here, the market is responding. Nobody’s taking long-term borrowing positions anymore,” he said.
Noting the rising popularity of 90-day commercial papers (CPs), something that never existed until late 2023, George said that it is becoming more sensible to opt for short-term borrowing that will lead to re-entering when the rate is lower.
“Why lock into 270 days when the trend clearly shows interest rates are coming down? It makes more sense to go short-term and re-enter when the rate is lower,” George said.
Highlighting Nigeria’s macroeconomic environment, the industrial sector’s problems, and the company’s survival strategy amid volatile government policies, Onafowokan projected that any major appreciation of the naira will most likely not happen until 2026 or beyond.
He, however, expressed optimism that with salaries rebased across the private sector since late 2023, the spending power of citizens will continue to stabilise and improve.
“There’s no going back on salary increments, even if the currency strengthens. That’s an economic truth. Spending power will continue to improve in this new normal,
We must be deliberate in growing domestic direct investment. There’s no legacy without it.
Tell me 10 companies in the Nigerian industry that are over 50 years old. You can’t find them. Are we only 10 years old as a country.
Discipline is the difference. Foreigners out-perform us because they play the long game. They retain profits, reinvest, and delay lifestyle upgrades. That’s what many of us need to learn.
Nigeria is a viable country. I will create jobs here. But we must build legacy businesses and embed discipline in our industrial culture. That’s how we grow,” he added.
