NESG Raises Alarm Over Nigeria's Manufacturing Decline

The Nigerian Economic Summit Group (NESG) has raised alarms regarding the decline of Nigeria's manufacturing sector, citing high energy costs, import competition, inadequate financing, and weak industrial coordination as key factors undermining productive capacity. In a statement released on Sunday ahead of the 32nd Nigerian Economic Summit, the NESG warned that the manufacturing sector, which is crucial for Nigeria's structural transformation, has experienced a relative decline.

The group noted that manufacturing contributes a decreasing share of GDP and lacks the necessary backward and forward linkages typical of industrializing economies. Despite Nigeria's vast resources and a domestic market of over 220 million consumers, the country continues to export raw materials while importing finished products.

The NESG attributed productivity issues to years of underinvestment in infrastructure and inefficient regulation. It also highlighted the crippling energy costs faced by manufacturers and the detrimental impact of subsidized imports.

The upcoming summit will explore measures to restore manufacturing competitiveness, including Special Economic Zones and fiscal incentives.