The Manufacturers Association of Nigeria (MAN) has emphasised the need for policy and structural reforms to revitalize the ailing manufacturing sector in the country, even as it laments the dip in the growth of the sector from 14.7 percent in 2014 to 1.38 percent in 2024. Director General of MAN, Segun Ajayi-Kadir, warned that the country faces the risk of industrial collapse if urgent actions are not taken to tackle macroeconomic instability, policy inconsistencies and infrastructural decay.
In a keynote address at the 2025 Manufacturing Conference on the theme, “Unlocking Nigeria’s Manufacturing Potential: Strategies for Sustainable Growth Amid Economic Turbulence,” Ajayi-Kadir said that unlocking the evident potentials of the Nigerian manufacturing sector is not just an economic imperative, it is a strategic necessity for sustainable national development.
His words: “In Africa, Egypt, Nigeria and South Africa are the leading industrial giants, with manufacturing value-added of $59 billion, $55.9 billion and $49.3 billion respectively; collectively contributing 49.2% of the continent’s manufacturing output.
“In Nigeria, the manufacturing sector is a vital engine of economic growth, contributing significantly to value added, GDP, employment, government revenue, foreign exchange inflow and technological advancement.
“The full potential of the manufacturing sector remains untapped, operating below its capacity due to macroeconomic headwinds; deficient infrastructure facilities and inadequacy of supportive government policies and incentives.
“It is generally accepted that the manufacturing sector is the engine of Nigeria’s industrialization, yet its current performance is sub-optimal. Its performance had remained lacklustre due to numerous familiar binding constraints like unstable exchange rate, inadequate power supply/ high cost of energy, high inflation, insecurity, multiplicity of regulatory agencies and high regulation costs, high interest rate and poor access to credit, deficient infrastructure, high logistics cost, unfavourable trade policies and low patronage.
“Available data shows that manufacturing capacity utilization plummeted from 73.3% in 1981 to 57% in 2024 and contribution to the economy has shrunk from 29.9% to 8.6% over the same period.
“Real growth has decelerated from 14.7% in 2014 to 1.38% in 2024, while non-oil export contributions have nose-dived from 82.37% in 2019 to 25.13% in 2024.” The MAN DG added unlocking Nigeria’s manufacturing potential requires collaboration from all stakeholders, including the government, media, consumers and the manufacturers themselves.
Ajayi-Kadir emphasised the need to make the ‘Nigeria First’ policy a binding law, adding that punitive measures should be put in place for violators.
“This is critical to give the policy legal standing, ensuring transparency, public awareness, and enforceability across government institutions and the private sector,” he added.