The Federal Government has unveiled an ambitious plan to significantly increase the contribution of Nigeria’s manufacturing sector to the nation’s Gross Domestic Product (GDP), setting targets of 15 per cent by 2030 and 25 per cent by 2035, up from the current 8.2 per cent.
The targets are contained in the newly launched Nigeria Industrial Policy (NIP) introduced by the Federal Ministry of Industry, Trade and Investment as part of broader efforts to deepen industrialisation, diversify the economy, and reduce dependence on crude oil exports.
According to the policy document, the manufacturing sector currently provides employment for about 13 million Nigerians across key industries such as food processing, cement production, textiles, pharmaceuticals, and the automotive sector. The government believes strengthening the sector will not only stimulate economic growth but also create large-scale job opportunities and expand Nigeria’s industrial capacity.
The industrial policy is designed to accelerate Nigeria’s economic transformation by leveraging the country’s natural resources and human capital. Authorities said the framework would encourage innovation, expand infrastructure, attract investment, and boost export-oriented production as part of efforts to position the country for long-term economic growth.
Officials also noted that the strategy aligns with Nigeria’s ambition to build a $1 trillion economy by 2030.
As part of the plan, the policy prioritises four key sectors considered vital for industrial development: metals and solid minerals, oil and gas, construction, and manufacturing. The government explained that each of these sectors contains several sub-sectors with strong potential for value addition, job creation, and increased domestic production.
These sectors were selected based on their comparative advantages and their ability to drive industrial expansion while strengthening Nigeria’s participation in regional and global trade.
The policy also highlights the crucial role of the agro-allied industry in supporting industrial growth. Over the past decade, the sector has contributed an average of about 25 per cent to Nigeria’s real GDP, rising to approximately 27 per cent after the rebasing of the economy. It also accounts for about 35 per cent of total employment in the country.
Government officials noted that the agro-allied sector supplies essential raw materials to several manufacturing industries, including food processing, leather production, and textiles, making it a key link in Nigeria’s industrial value chain.
However, the report acknowledged that the sector still faces several challenges that limit productivity. These include limited mechanisation, outdated farming techniques, post-harvest losses, and insecurity affecting farming communities.
The government also admitted that broader structural issues continue to affect the performance of the manufacturing sector. These challenges include unreliable power supply, limited access to financing for businesses, and competition from cheaper imported products.
Authorities said steps are being taken through legal and institutional frameworks to address these problems and strengthen the operating environment for manufacturers.
Speaking on the new policy framework, the Minister of State for the Federal Ministry of Industry, Trade and Investment, John Owan Enoh, described the Nigeria Industrial Policy as a comprehensive strategy aimed at transforming the country’s economic landscape.
He said the initiative demonstrates the government’s determination to diversify Nigeria’s economy, create inclusive prosperity, and position the country as a major industrial hub in Africa and beyond.
The government expressed optimism about the future of the sector, pointing to Nigeria’s abundant natural resources, expanding consumer market, and ongoing investments in Special Economic Zones.
Officials also noted that Nigeria’s participation in regional trade initiatives such as the African Continental Free Trade Area and the ECOWAS Trade Liberalisation Scheme is expected to provide manufacturers with broader market access and greater export opportunities across Africa.
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