Former Director-General of the United Nations Industrial Development Organisation (UNIDO), Dr Kandeh Yumkella, says Nigeria has the resources, market size and entrepreneurial strength to become Africa’s industrial powerhouse, but must translate these advantages into competitive manufacturing and increased exports.
Yumkella identified Nigeria’s financial capacity and strategic position within the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA) as additional advantages that could support industrial growth. However, he stressed that the country needed to convert its industrial ambitions and economic potential into measurable results.
He made the remarks in Lagos while delivering the sixth Adeola Odutola Lecture, organised by the Manufacturers Association of Nigeria (MAN). The lecture was themed, “Leveraging National Industrial Policy to Position Nigeria as Africa’s Industrial Hub.”
Yumkella said successful industrialisation depended on policies that encouraged productive capacity, investment, technology, competitiveness and value addition, while creating employment opportunities.
Despite its considerable advantages, he noted that Nigeria’s industrial performance remained below expectations. Manufacturing currently contributes about seven to eight per cent of the country’s Gross Domestic Product, while manufactured goods account for only about three per cent of total export revenue.
He added that Nigeria’s exports of goods and services represented just 10.7 per cent of GDP, highlighting the need to strengthen domestic production and improve access to international markets.
According to Yumkella, the country’s estimated 41 million micro, small and medium enterprises demonstrate the resilience and capacity of its private sector. However, he cautioned that the existence of these businesses alone would not guarantee industrial success without policies that enable them to grow and compete.
The former UNIDO chief also identified unreliable electricity supply as a major constraint on manufacturing and industrial competitiveness. He said the national grid supplied approximately 5,000 to 6,000 megawatts, compared with estimated electricity demand of more than 20,000 megawatts.
He disclosed that manufacturers spent an estimated N1.34 trillion on generating their own electricity in 2025, up from N781.68 billion in 2023. Energy, he added, accounted for between 35 and 40 per cent of production costs, placing considerable pressure on businesses.
Yumkella urged the government to maximise Nigeria’s natural gas, hydropower and solar resources to provide industries with reliable and affordable electricity. He also called for the development of regional energy markets across West Africa to improve access to power and support industrial expansion.
He maintained that Nigeria’s industrial transformation would depend on turning its abundant resources, large domestic market and entrepreneurial capacity into higher production, stronger exports, increased value addition and sustainable job creation.
SOURCE: VANGUARD
