Local manufacturers in Nigeria are having a difficult time growing their businesses in the country in what some claim is favoritism by the federal government towards foreign investors and importation of cheap products from Asian nations such as China and India.

It is much more “riskier” as an indigenous investor to manufacture in Nigeria than it is “to fight Boko Haram”, according to Eric Umeofia, chief executive Officer at Erisco Foods Limited, a tomato manufacturing firm.

“It is riskier than going to fight Boko Haram in Maiduguri to be an indigenous manufacturer here. Because your government agencies work against you as they support foreigners to the detriment of their people,” Umeofia told Vanguard in an interview.

While Nigeria’s manufacturing sector is taunted by global investment firm Renaissance Capital as the leading economic driver, local investors such as Umeofia are having a difficult time growing their business, while foreign manufactures from China and other Asian countries are taking advantage of tax breaks to get a foothold into the market.

According to a 2014 RenCap report, title “Nigeria’s GDP: Bigger but slower…“, the manufacturing sector is currently growing faster than the telecommunications, oil and gas and agricultural sectors in Nigeria’s rebased Gross Domestic Product (GDP).

Nigeria rebased its GDP in April 2014, overtaking South Africa as the largest economy in Africa.

Emma Ibru, the president Nigeria Brazil Chambers of Commerce and Industry. told Sun News that manufacturing sector frustration has been heightened by uncoordinated policy interventions by the government have had adverse impact on the sector.

“It is impossible to have a vibrant manufacturing sector in the face of rampant dumping of cheap imports in the country. Some of these imports are landing at 50 per cent of the cost of products produced locally,” Ibru said.

Energy costs in the West African nation has also made it difficult for manufacturers to keep their factories running as chronic power failures in recent years  push investors to rely on expensive diesel-powered generators.

Investment banking group, FBN Capital has indicated through its Purchasing Managers Index, PMI, that Nigeria’s manufacturing sector may be headed for recovery in 2016.

The report indicated a rise to 51.6 per cent from 49 per cent for September 2015, which showed a steady recovery of business activities and confidence in the manufacturing sector, while forecasting a modest improvement.