Bakrin Advocates Reforms to Boost Nigeria's Manufacturing Sector

Kamar Bakrin, the Executive Secretary of the National Sugar Development Council (NSDC), called for decisive reforms to reduce production costs in Nigeria's manufacturing sector during the 17th National Council on Industry, Trade and Investment (NCITI) held in Enugu. He warned that without these reforms, Nigeria risks losing its competitive edge in the African market.

Bakrin presented a four-point strategy aimed at enhancing the competitiveness of Nigerian industries, particularly in light of the African Continental Free Trade Area (AfCFTA). He highlighted that Nigerian manufacturers incur costs two to ten times higher than their counterparts in countries like Vietnam and China, primarily due to expensive electricity, financing, and logistics.

For instance, electricity costs in Nigeria are approximately 15 cents per kilowatt-hour, compared to 8 cents in Vietnam. Bakrin noted that manufacturers spent an estimated ₦1.34 trillion on self-generated electricity last year.

He emphasized that manufacturing only accounts for about 8% of Nigeria's GDP, with factory capacity utilization at 57.7%, despite a population of around 230 million.