NSDC Calls for Reduction in Nigeria's Production Costs

Kamar Bakrin, the Executive Secretary of the National Sugar Development Council (NSDC), addressed the need for Nigeria to reduce its high production costs to maintain competitiveness in both domestic and African markets. Speaking at the 17th National Council on Industry, Trade and Investment (NCITI) in Enugu, Bakrin pointed out that Nigerian manufacturers face significantly higher costs for electricity, financing, and logistics compared to countries like Vietnam and China.

He noted that while factories in Vietnam and China pay between 8 and 10 US cents per kilowatt-hour for electricity, Nigerian manufacturers often pay up to 30 cents, leading to an estimated ₦1.34 trillion spent on self-generated electricity last year. Bakrin emphasized that these structural costs are the primary barrier to industrial growth, not a lack of demand.

He proposed four key policy actions to improve competitiveness, including dedicated electricity supply to industrial clusters, tax harmonization, an annual State Industrial Competitiveness Index, and stricter enforcement of regulations.