The Nigeria Economic Summit Group (NESG) has warned that high production costs, unreliable electricity and inadequate logistics infrastructure are weakening Nigeria’s industrial competitiveness and limiting the ability of local manufacturers to compete across African markets.
The warning was delivered by Lumun Feese, co-facilitator of the NESG, during a breakout session on building an integrated industrial ecosystem at the 32nd Nigeria Economic Summit in Abuja.
Feese said Nigeria had fallen from eighth to 14th position in the African Development Bank’s Africa Industrialisation Index. However, she noted that changes in the index’s methodology and the inclusion of more countries had influenced the latest ranking.
She questioned how Nigerian manufacturers could compete with businesses in countries such as South Africa when local production costs remained high, particularly because of electricity and transportation challenges.
To address the situation, Feese proposed establishing an Industrialisation, Competitiveness and Regional Integration Council within the Presidency. The proposed body would coordinate government policies, strengthen implementation of the National Industrial Policy and improve collaboration between the public and private sectors.
She also stressed the need to integrate Nigeria’s transportation networks, energy systems and industrial infrastructure to reduce operating costs and improve access to markets under the African Continental Free Trade Area (AfCFTA).
Other stakeholders at the summit identified limited access to finance, skills shortages, regulatory bottlenecks, insecurity and inadequate export infrastructure as additional barriers to industrial growth.
The discussions also highlighted the importance of adding value to Nigeria’s natural resources, particularly through mining and mineral processing, agro-industrial production, and petrochemicals and gas development.
The NESG urged government institutions, businesses and industry stakeholders to work together towards practical policies that can lower production costs, expand local manufacturing and strengthen Nigeria’s position in regional and international markets.
