NESG Warns of Decline in Nigeria's Manufacturing Sector

The Nigerian Economic Summit Group (NESG) has expressed serious concerns regarding the decline of Nigeria's manufacturing sector, attributing this downturn to high energy costs, competition from imports, inadequate financing, and weak industrial coordination. In a statement issued on Sunday, prior to the 32nd Nigerian Economic Summit, the NESG warned that manufacturing, which is crucial for Nigeria's structural transformation, has experienced a relative decline.

The sector's contribution to GDP is decreasing, and it has failed to establish the necessary backward and forward linkages typical of industrializing economies. Despite Nigeria's vast natural resources and a domestic market of over 220 million consumers, the country continues to export raw materials while importing finished goods.

The NESG identified energy costs as a significant operational constraint for manufacturers and criticized the lack of an integrated industrial policy. The upcoming summit will explore strategies to enhance manufacturing competitiveness, including the establishment of Special Economic Zones and fiscal incentives for local production.