KEY POINTS
- MAN says Nigeria’s dependence on imported machinery, industrial inputs and finished products poses economic and national security risks.
- The association puts manufacturing value added at $24.01 billion, or 8.26 per cent of GDP.
- Manufacturers spent more than N1.34 trillion on alternative power generation in 2025.
- NOTAP calls for stronger quality control, technology transfer and implementation of local content policies.
MAIN STORY
The Manufacturers Association of Nigeria (MAN) has called for urgent, coordinated interventions to reduce the country’s dependence on imported industrial goods and strengthen the competitiveness of domestic manufacturers.
The Director-General of MAN, Mr Segun Ajayi, made the call at a national workshop on the implementation of the Local Vendor Policy in the manufacturing sector, organised by the National Office for Technology Acquisition and Promotion (NOTAP) on Wednesday in Lagos.
Ajayi, who was represented by Mrs Oluyinka Omojolaibi, Assistant Director of MAN’s Research and Economic Policy Division, warned that Nigeria’s reliance on imported machinery, industrial inputs, technology and finished products exposed the economy to foreign exchange pressures, supply chain disruptions, inflation and external economic shocks.
He said the country’s natural resources, large consumer market and entrepreneurial population had not translated into manufacturing competitiveness, pointing to the gap between Nigeria’s industrial workforce and its manufacturing output.
According to figures cited by the association, Nigeria has the continent’s largest manufacturing employment figure, estimated at 12.76 million jobs. However, its manufacturing value added stood at $24.01 billion in 2025, representing 8.26 per cent of Gross Domestic Product (GDP).
The figure was significantly below Egypt’s $52.96 billion and South Africa’s $52.35 billion, highlighting the gap between the size of Nigeria’s manufacturing workforce and the value generated by its industrial sector.
Ajayi also cited Nigeria’s manufacturing capacity utilisation of 59.5 per cent, compared with 81 per cent in Morocco, 76 per cent in South Africa and 70.5 per cent in Egypt.
The disparity was also reflected in manufacturing value added per capita. MAN put Nigeria’s figure at $101.09, against $808.52 for South Africa, $708.60 for Morocco and $347.41 for Egypt.
Ajayi attributed the country’s manufacturing constraints to unreliable electricity, high interest rates, multiple taxation, regulatory bottlenecks, expensive imported inputs and rising transportation costs.
He disclosed that manufacturers spent more than N1.34 trillion on alternative power generation in 2025 alone, with energy expenses accounting for over 50 per cent of their operating overheads.
These costs, he said, had constrained factory operations, reduced capacity utilisation and weakened the ability of local producers to compete with foreign manufacturers.
He argued that building more factories would not, on its own, deliver industrial self-sufficiency. Instead, Nigeria needed a coordinated strategy involving government, financial institutions, educational institutions, research organisations and private businesses.
The MAN director-general identified stronger local manufacturing capacity, affordable financing, technical education, research and innovation, improved infrastructure and energy supply, and technology transfer as essential areas for intervention.
He also called for greater support for small and medium-sized enterprises through access to funding, modern equipment, technical expertise and markets.
On foreign investment, Ajayi said international investors should be encouraged to establish partnerships with Nigerian businesses, universities and research institutions. He stressed that technology transfer must extend beyond importing equipment to include practical training, technical collaboration and the development of local suppliers.
Also speaking at the workshop, Mr Jonas Nzeagwu, Director of Technology Transfer Registration at NOTAP, said improving domestic production required stronger standards, certification, metrology, quality management and enforcement.
He said these measures would help prevent counterfeit products and ensure that Nigerian-made goods could compete in local and international markets.
Nzeagwu also advocated support for domestic manufacturers to meet the standards required under the African Continental Free Trade Area and other international trade arrangements.
He identified export development as another important part of industrial transformation, urging Nigeria to expand its export base beyond crude oil to include agricultural products, manufactured goods, pharmaceuticals, digital services and engineering solutions.
THE ISSUES
The figures presented by MAN point to a central challenge in Nigeria’s industrial development: a large manufacturing workforce has not translated into output and productivity comparable with those of some other African economies.
The association’s concerns also highlight the cost of relying on imported machinery and industrial inputs while manufacturers contend with high energy expenses, expensive financing and infrastructure constraints.
For the Local Vendor Policy to support domestic production, local suppliers must be able to provide goods and services that meet manufacturers’ technical, quality and cost requirements. This makes standards enforcement, access to finance, skills development and technology transfer important parts of the policy’s implementation.
WHAT’S BEING SAID
“States with established commercial centres should develop industrial and logistics hubs, while those with technology ecosystems should support innovation and digital industries.” – Jonas Nzeagwu, Director of Technology Transfer Registration, NOTAP.
WHAT’S NEXT
Nzeagwu called on the Federal Government to ensure effective implementation of the recently launched Nigerian Industrial Policy, improve the business environment, invest in critical infrastructure and expand access to industrial financing.
He also urged government institutions responsible for standards and quality control to strengthen their enforcement activities.
At the state level, he said governments should identify their comparative advantages and develop industrial programmes around them. States with strong agricultural potential, for instance, should prioritise agro-processing, while mineral-rich states should promote mineral processing and manufacturing.
He called on private businesses to invest in modern equipment, workforce development, research, innovation and quality improvement. Banks and development finance institutions, he added, should prioritise productive investments rather than concentrate predominantly on short-term commercial activities.
Nzeagwu also urged universities, polytechnics and technical colleges to align their programmes with the practical skills and technological needs of Nigerian industries.
He said citizens had a role to play by patronising quality locally manufactured products, acquiring technical and vocational skills, supporting local innovators and promoting Nigerian products internationally.
He identified targeted industrial financing, reliable electricity, industrial infrastructure, stronger technical education and the commercialisation of research findings as necessary to achieve the country’s industrial ambitions.
He further stressed the need for effective implementation of local content policies, expansion of non-oil exports and policy consistency.
BOTTOM LINE
MAN and NOTAP say Nigeria’s shift from import dependence to competitive domestic manufacturing will require more than policy announcements. It will depend on sustained implementation, stronger local suppliers, reliable infrastructure, access to finance, technical skills and technology transfer that builds the capacity of Nigerian businesses to produce for local and international markets.
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