The Nigerian Economic Summit Group (NESG) has warned that Nigeria’s high production costs, unreliable electricity supply and inadequate transport infrastructure are weakening the competitiveness of local manufacturers and limiting the country’s ability to compete effectively in African markets.
The organization called for the establishment of an industrialization, competitiveness and regional integration council within the Presidency to coordinate government policies, improve implementation and accelerate industrial development.
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 Nigerian Economic Summit in Abuja.
Feese said Nigeria was failing to maximise the advantages of its large economy, abundant natural resources and substantial domestic market because businesses continued to grapple with high operating expenses.
She questioned how Nigerian manufacturers could compete with producers in countries such as South Africa when the cost of producing goods locally remained significantly high.
Nigeria Falls to 14th on Africa’s Industrialization Index
Feese disclosed that Nigeria had dropped from eighth to 14th position on the African Development Bank’s Africa Industrialization Index.
She, however, noted that the latest ranking reflected changes in the index’s methodology and the inclusion of more countries, meaning the decline should be interpreted within that context.
Despite the qualification, she maintained that Nigeria’s industrial performance remained below its potential, given the size of its economy and the resources available to support manufacturing.
The NESG official argued that the country needed to move beyond depending heavily on its domestic market and develop the capacity to manufacture goods that could compete across Africa and internationally.
She said the African Continental Free Trade Area (AfCFTA) offered Nigerian businesses access to a much larger market, but taking advantage of the opportunity would require lower production costs, better infrastructure and stronger industrial coordination.
Electricity and Poor Logistics Drive Up Costs
Stakeholders at the summit identified unreliable electricity, expensive financing, inadequate transport networks, security challenges, regulatory bottlenecks and shortages of skilled workers as major obstacles to industrial growth.
Manufacturers often incur additional expenses when they rely on alternative power sources, while poor roads, inefficient ports and limited rail connections increase the cost of moving raw materials and finished products.
The NESG argued that these challenges make Nigerian goods less competitive and discourage investment in factories, processing facilities and other productive businesses.
Participants also stressed the need to improve access to long-term financing, strengthen vocational training and ensure that industrial policies are supported by clear implementation plans.
They called for closer coordination between government agencies and private-sector operators to prevent fragmented policies from undermining investment and industrial expansion.
NESG Proposes New Council Within Presidency
To address the challenges, Feese proposed the establishment of an industrialization, competitiveness and regional integration council within the Presidency.
The proposed body would provide a central platform for coordinating government institutions, aligning industrial policies and ensuring that agreed measures are implemented consistently.
It would also support stronger private-sector participation and help integrate infrastructure systems, including roads, railways, maritime transport and aviation, to improve the movement of goods.
The proposal is intended to reduce the fragmentation that has affected industrial development efforts and establish clearer responsibilities for delivering measurable results.
Gerald Okunsebor, Special Assistant on Strategy to the Minister of State for Industry, also called for greater awareness of Nigeria’s National Industrial Policy.
He said the government needed a practical implementation framework containing clear timelines, defined responsibilities and accountability mechanisms.
He further advocated a central knowledge-management system to preserve institutional experience and ensure that industrial development policies continue across successive administrations.
Local Manufacturing and Export Growth at Stake
The summit also examined ways to strengthen domestic value addition by processing more of Nigeria’s agricultural produce, minerals, petroleum resources and other raw materials locally.
Stakeholders identified mining and mineral processing, agro-industrial production, petrochemicals and gas development as areas with significant potential to generate jobs and expand manufacturing capacity.
They called for improved industrial financing, reliable energy, better export infrastructure and stronger product certification systems to help Nigerian companies meet international standards.
Participants also emphasized the importance of developing local technical expertise and encouraging businesses to invest in technology, research and skills development.
The NESG maintained that Nigeria must build a more integrated industrial ecosystem if it hopes to reduce dependence on raw-material exports and imported finished goods.
The group urged government and private-sector stakeholders to sustain engagement beyond the annual summit, stressing that industrialization requires coordinated policies, consistent implementation and long-term investment.
It said the ultimate objective should be an economy capable of creating productive jobs, strengthening local businesses and improving living standards through sustained industrial growth.
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