Nigeria's industrial competitiveness is being eroded by high production costs, unreliable electricity supply and inadequate logistics infrastructure, according to the Nigeria Economic Summit Group. The NESG has called for a dedicated council within the Presidency to coordinate industrialisation policies and tackle these structural challenges. Lumun Feese, co-facilitator of the NESG, made the warning at a breakout session on industrial development during the 32nd Nigeria Economic Summit in Abuja, emphasising that the country needs a coordinated approach to enable local manufacturers to compete effectively in African markets.
Nigeria's standing on the continent has slipped significantly. The country dropped from eighth to 14th position on the African Development Bank's Africa Industrialisation Index, although Feese noted that the methodology had changed and more countries had been included in the latest ranking. Feese highlighted the scale of the challenge, asking how Nigerian businesses could compete with rivals in South Africa when their production costs were so elevated. She stressed that Nigerian businesses needed reliable power, efficient transportation systems and lower production costs to take advantage of the African Continental Free Trade Area, which provides access to a wider continental market.
The NESG's proposed industrialisation, competitiveness and regional integration council would serve as a central coordinating platform within the Presidency, aligning government policies, improving implementation of the National Industrial Policy and strengthening private-sector participation. Feese said the recommendations emerged from consultations on mining, the blue economy, power, oil and gas, and industrial competitiveness. She urged businesses and other stakeholders to maintain their engagement with the NESG's Industrial Policy Commission, stating that coordinated policies and consistent implementation were necessary to achieve measurable industrial growth.
Beyond production costs and infrastructure, other stakeholders at the session identified limited access to finance, skills shortages, regulatory bottlenecks, security concerns and inadequate export infrastructure as major obstacles to industrial growth. Gerald Okunsebor, Special Assistant on Strategy to the Minister of State for Industry, called for greater awareness of the National Industrial Policy and a clear implementation framework with defined responsibilities, timelines and accountability mechanisms. He also emphasised the need for a central knowledge-management system to ensure continuity in industrial development policies across successive administrations.