The Manufacturers Association of Nigeria (MAN) has stressed the urgent need for a broader energy initiative to successfully implement the recently launched National Industrial Policy (NIP), warning that persistent power sector instability could undermine Nigeria’s industrialisation goals.
Speaking to journalists in Abuja, the Director General of MAN, Segun Ajayi-Kadir, highlighted the critical role of reliable electricity in transforming Nigeria’s manufacturing sector.
According to him, energy reform remains the single most decisive factor in determining whether the country can raise manufacturing’s contribution to Gross Domestic Product (GDP) to 25 per cent by 2035.
“The power sector is currently a major impediment. Without a fundamental resolution of the electricity challenge, the ambitious targets of the National Industrial Policy risk becoming another abandoned industrial aspiration,” Ajayi-Kadir said.
Power Reform: A Prerequisite for the National Industrial Policy
The National Industrial Policy is considered the most inclusive industrial blueprint Nigeria has produced in over six decades. The policy aims to lift manufacturing’s contribution to GDP from 9–11 per cent, increase sector capacity utilisation from 50–75 per cent, and position Nigeria as a competitive manufacturing hub under the African Continental Free Trade Area (AfCFTA).
Ajayi-Kadir emphasised that none of these objectives can be achieved without addressing electricity supply issues. He highlighted pilot projects that combine grid power with alternative energy solutions already operating in select industrial clusters as a model for nationwide rollout.
The policy framework also envisions renewable energy adoption, private sector-led industrial power solutions, and state-level electricity autonomy.
Interest Rates and Manufacturing Costs
Beyond energy, MAN called on the Central Bank of Nigeria (CBN) to reduce borrowing costs for manufacturers. Ajayi-Kadir argued that high interest rates, combined with unreliable power, significantly increase production costs.
“With inflation stabilising and the naira showing resilience, there is room for the CBN to ease borrowing costs and stimulate industrial growth,” he said, noting that affordable financing is crucial to ensuring the NIP’s success.
Co-Creation and Implementation Strategy
The DG revealed that the National Industrial Policy was developed through extensive consultations involving government officials, technocrats, development partners, and industry stakeholders.
This collaborative approach, he explained, makes it the most comprehensive industrial blueprint in Nigeria’s history.
“The policy comes with a detailed implementation roadmap covering short, medium, and long-term objectives over the next 10 years,” Ajayi-Kadir added.
“For the first time, private sector aspirations are aligned with government objectives to industrialise Nigeria.”
Role of State Governments and Private Sector
Ajayi-Kadir also urged state governments to design complementary industrial policies. With at least 37 budgets implemented annually across federal and state levels, he said industrialisation should be treated as a deliberate, strategic priority across all tiers of government.
The MAN DG further emphasised that domestic value addition is key. He pointed to initiatives such as the Dangote Refinery, which processes raw materials locally, as examples of how energy security and industrial policy can drive employment, tax revenue, and household incomes.
MAN Vision for a Competitive Manufacturing Sector
In his remarks, Ajayi-Kadir stressed that successful implementation of the National Industrial Policy requires combining grid electricity with renewable and alternative energy sources, reducing financing costs, and ensuring robust private sector participation.
“The NIP is a historic opportunity to modernise Nigeria’s manufacturing base. If properly supported through energy and financial reforms, Nigeria can transform from a net importer of industrial inputs into a competitive industrial powerhouse,” he said.
The Manufacturers Association of Nigeria remains committed to working with the federal government, state authorities, and financial institutions to accelerate the adoption of energy solutions, enhance industrial competitiveness, and realise the ambitious goals of the National Industrial Policy.
