A former Director-General of the United Nations Industrial Development Organisation, Dr Kandeh Yumkella, has said Nigeria possesses the basic foundations to become Africa’s industrial powerhouse, but must turn its large market, natural resources and entrepreneurial capacity into competitive production and exports.

Yumkella pointed to Nigeria’s financial depth and its strategic position within the Economic Community of West African States and the African Continental Free Trade Area as further advantages. He said the country’s industrial challenge was not a lack of ambition or enterprise, but its failure to convert potential into measurable economic performance.

Vanguard reported that he spoke in Lagos while delivering the 6th Adeola Odutola lecture, organised by the Manufacturers Association of Nigeria. The lecture was themed, “Leveraging National Industrial Policy to Position Nigeria as Africa’s Industrial Hub”.

“Nigeria has the essential foundations for an industrial powerhouse. It has scale, resources, vibrant entrepreneurs, financial depth and strategic positioning to win equity in the African Continental Free Trade Area (AfCFTA).

“Countries industrialise when policy translates into productive capacity, investment, technology, competitiveness and value addition to create jobs,” he said.

Yumkella, however, observed that Nigeria’s industrial performance remained below its potential. He said manufacturing contributes about seven to eight per cent of Gross Domestic Product (GDP), while manufactured goods generate only about three per cent of total export revenue.

According to him, exports of goods and services account for just 10.7 per cent of Nigeria’s GDP. He said this underscores the urgent need to strengthen domestic production and widen access to international markets.

“Nigeria’s 41 million micro, small and medium enterprises (MSMEs) testify to the energy and resilience of the private sector. But potential is not performance,” he said.

Yumkella identified unreliable electricity supply as a major obstacle to industrial competitiveness. He noted that the national grid delivers about 5,000 to 6,000 megawatts, against estimated demand of more than 20,000 megawatts.

He said manufacturers spent an estimated ₦1.34 trillion on self-generated electricity in 2025, up from ₦781.68 billion in 2023. He added that energy accounts for between 35 and 40 per cent of production costs.

He urged the government to harness the country’s abundant natural gas, hydropower and solar resources to provide reliable and affordable electricity for industries, while promoting regional energy markets across West Africa.