Nigeria has dropped from eighth to 14th position on the African Development Bank’s Africa Industrialisation Index, as the Nigeria Economic Summit Group warned that high production costs, unreliable electricity and poor logistics infrastructure are undermining the country’s industrial competitiveness.
The group called for the establishment of a council within the Presidency to coordinate industrialisation policies.
The Co-facilitator of the NESG, Lumun Feese, said Nigeria needed a coordinated approach to industrial development.
According to her, such an approach would address structural challenges and enable local manufacturers to compete effectively in African markets.
She spoke at a breakout session on building an integrated industrial ecosystem during the 32nd Nigeria Economic Summit in Abuja.
Feese said Nigeria’s slide from eighth to 14th position was reflected in the latest edition of the index.
She noted, however, that the methodology had changed and more countries had been included in the latest ranking.
She said, “We are not maximising our potential and our large economy.
“How do we go and compete in South Africa when our cost of production is so high?”
Feese said the proposed industrialisation, competitiveness and regional integration council would provide a central coordinating platform within the Presidency.
She said the council would align government policies, improve implementation of the National Industrial Policy and strengthen private-sector participation.
She said Nigerian businesses needed reliable power, efficient transportation systems and lower production costs.
According to her, these would help them take advantage of the African Continental Free Trade Area, which offers access to a wider continental market.
Feese said the recommendations followed consultations on mining, the blue economy, power, oil and gas, and industrial competitiveness.
She urged businesses and other stakeholders to sustain their engagement with the NESG’s Industrial Policy Commission.
She said coordinated policies and consistent implementation were necessary to achieve measurable industrial growth.
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.
The Special Assistant on Strategy to the Minister of State for Industry, Gerald Okunsebor, called for greater awareness of the National Industrial Policy.
He also called for a clear implementation framework with defined responsibilities, timelines and accountability mechanisms.
Okunsebor said a central knowledge-management system was also needed to ensure continuity in industrial development policies across successive administrations.
