Nigeria’s industrialisation will not be delivered by another policy document. It will be delivered by competitiveness.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, who disclosed this on Wednesday at the Lagos Chamber of Commerce and Industry at its Mid-Year Economic Review and Outlook, said the country’s Industrial Policy 2025 is the most comprehensive framework in decades.
However, he argues that design means little without execution in an operating environment still burdened by high energy costs, poor logistics, port infrastructure, and expensive finance.
“Industrial policy alone cannot overcome an uncompetitive business environment,” Yusuf said. “Manufacturers cannot compete globally while contending with prohibitive production costs,” he explained.
To make Nigerian manufacturing globally competitive, Yusuf outlined a five-pillar framework. First, reduce competitive production costs through reliable power, efficient transport and affordable long-term finance.
Second, enhance productivity and innovation through technology adoption, R&D, and Industry 4.0. Third, build competitive value chains by linking agriculture, minerals, and services to domestic processing.
Fourth, pursue export competitiveness to capitalize on the AfCFTA and global markets. Fifth, strengthen institutions that enable enterprise through policy consistency, regulatory certainty, and contract enforcement.
With AfCFTA opening a market of more than one billion people, Yusuf warned that market access without competitiveness risks turning Nigeria into a dumping ground.
“The cost of inaction is profound,” he said. “The next phase of reform must convert macroeconomic stability into productivity and industrial strength.”
Ayo Teriba, CEO of Economic Associates, in his speech, highlighted Nigeria’s economic positives – stable exchange rate, accelerated GDP growth, and a thriving stock market (up 50 percent since January). He notes potential global shocks (Iran war) but emphasizes Nigeria’s resilience.
Teriba noted Nigeria’s missed opportunity to benefit from the stock market rally due to the lack of state-owned enterprises listed on the exchange. He cited examples of countries like China, India, and Saudi Arabia that have successfully done so.
He suggested generating revenue from assets rather than from taxes. “Saudi Arabia does not tax anybody’s income. They always generate revenue from assets, and they generate much more than those who try to generate revenue from taxes.”
In his presentation on the ‘Economic Scorecard: Agriculture, Manufacturing and Services,’ Tope Fasua, special adviser to the President on Economic Affairs, said the country’s reforms are already showing results.
He cited 12 straight quarters of positive trade balances, inflation easing from an all-time high to 15.9 percent in May, and GDP growth holding at a 4.1 percent trajectory despite global headwinds.
Fasua pointed to increased local sourcing of raw materials, up 57.1 percent, a 3.29 percent spike in manufacturing’s contribution to GDP in Q1, and gains in services, fintech and digital adoption.
He added that reforms, including subsidy removal, naira adjustment, tax reform, customs modernisation and local government autonomy, are improving fiscal management and infrastructure delivery.
In his opening remarks, Leye Kupoluyi, president of Lagos Chamber of Commerce & Industry, highlighted Nigeria’s economic challenges and the need for private-sector-led growth.
He emphasized the importance of partnerships between government, business, and society to drive sustainable economic growth.
“The LCCI remains unwavering in its belief that sustainable economic growth must be private-sector-led, productivity-driven, and people-centred.”
“In line with this conviction, our advocacy will continue to prioritize the improvement of the ease of doing business and regulatory efficiency; the strengthening of micro, small, and medium-scale enterprises as critical engines of employment, innovation, and inclusion; the enhancement of trade facilitation, logistics, and industrial competitiveness; and the promotion of digital transformation, skills development, and innovation.”
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