Mr Segun Ajayi, the Director-General (DG) of the  Manufacturers Association of Nigeria (MAN) has called for urgent and coordinated interventions to move the country from import dependence to domestic manufacturing competitiveness.

‎He made this call at the National workshop on the implementation of the Local Vendor policy in the manufacturing sector organised by the National Office for Technology, Acquisition and Promotion (NOTAP) on Wednesday in Lagos.

‎The DG of MAN, who was represented by Mrs Oluyinka Omojolaibi, Assistant Director, research and economic policy division, warned that the situation posed economic and national security risks.

‎He said that Nigeria’s heavy reliance on imported machinery, industrial inputs, technologies and finished products exposed the economy to foreign exchange pressures, global supply chain disruptions, inflation and external economic shocks.

‎He explained that Nigeria’s abundant natural resources, large consumer market and entrepreneurial population had yet to translate into commensurate manufacturing competitiveness.

‎Presenting the address titled “Import-Dependent Competitive Nigeria Capability”, Ajayi said that Nigeria had the continent’s largest manufacturing employment figure, estimated at 12.76 million jobs, but its manufacturing output and productivity remained significantly below those of some African countries.

‎The DG cited comparative 2025 figures showing that Nigeria’s manufacturing value added stood at $24.01 billion, representing 8.26 per cent of its Gross Domestic Product (GDP), compared with Egypt’s $52.96 billion and South Africa’s $52.35 billion.

‎He noted that Nigeria’s manufacturing capacity utilisation stood at 59.5 per cent, below Morocco’s 81 per cent, South Africa’s 76 per cent and Egypt’s 70.5 per cent.

‎According to the association, the country’s manufacturing value added per capita is $101.09, significantly lower than South Africa’s $808.52, Morocco’s $708.60 and Egypt’s $347.41.

‎Ajayi highlighted that Nigeria’s manufacturing challenges were compounded by unreliable electricity, high interest rates, multiple taxation, regulatory bottlenecks, expensive imported inputs and rising transportation costs.

‎He disclosed that manufacturers spent more than N1.34 trillion on alternative power generation in 2025 alone, with energy expenses accounting for over 50 per cent of their operating overheads.

‎He explained that the persistent challenges had constrained factory operations, reduced capacity utilisation and weakened the ability of local manufacturers to compete with foreign producers.

‎The DG stressed that establishing more factories alone would not guarantee industrial self-sufficiency, noting that Nigeria needed a coordinated strategy involving government, financial institutions, educational institutions, research organisations and the private sector.

‎He identified strengthening local manufacturing, improving access to affordable finance, investing in technical education, promoting research and innovation, improving infrastructure and energy supply, and encouraging technology transfer as critical steps towards industrial transformation.

‎He also called for stronger support for small and medium-sized enterprises, particularly through access to funding, modern equipment, technical expertise and markets.

‎Ajayi concluded that foreign investors should be encouraged to build partnerships with Nigerian businesses, universities and research institutions, stressing that technology transfer must go beyond the importation of equipment to include practical training, technical collaboration and the development of local suppliers.

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‎Also speaking, Jonas Nzeagwu, Director, Technology Transfer Registration at NOTAP said strengthening local production required improved standards, certification, metrology, quality management and stricter enforcement.

‎These, he explained,  would guide against against counterfeit products to ensure that Nigerian-made goods could compete favourably in local and international markets.

‎He also advocated support for domestic manufacturers to meet the standards required under the African Continental Free Trade Area  and other international trade arrangements.

‎He identified export development as another critical component of industrial transformation, urging Nigeria to expand its export base beyond crude oil to include agricultural products, manufactured goods, pharmaceuticals, digital services and engineering solutions.

‎Nzeagwu emphasised that achieving competitive domestic production required coordinated contributions from all levels of government, private businesses, financial institutions, educational and research institutions, as well as citizens.

‎According to him, the Federal Government must ensure effective implementation of the recently launched Nigerian Industrial Policy, provide an enabling business environment, invest in critical infrastructure and improve access to industrial financing

He further urged them to strengthen institutions responsible for standards and quality control, while state governments should identify their respective comparative advantages and develop industrial programmes around them.

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‎He explained that states with strong agricultural potential should prioritise agro-processing, while mineral-rich states should promote mineral processing and manufacturing.

“States with established commercial centres should develop industrial and logistics hubs, while those with technology ecosystems should support innovation and digital industries,”he added.

‎The director also urged the private sector to increase investment in modern equipment, workforce development, research, innovation, quality improvement and efficient production processes.

‎He advised financial institutions, particularly banks and development finance institutions, to prioritise financing for productive investments rather than concentrate predominantly on short-term commercial activities.

Similarly, he urged universities, polytechnics and technical colleges to align their academic programmes with the practical skills and technological needs of Nigerian industries.

He called on citizens to contribute to industrial development by patronising quality locally manufactured products, acquiring technical and vocational skills, promoting entrepreneurship, supporting local innovators and showcasing Nigerian products internationally.

He identified targeted industrial financing, improved electricity supply and industrial infrastructure, stronger technical and vocational education, and commercialisation of research findings as essential measures for achieving the country’s industrial ambitions.

Nzeagwu also emphasised effective implementation of local content policies, expansion of non-oil exports and policy consistency as critical to driving sustainable industrial development.

‎He however, cautioned that the transition from import dependence to competitive domestic production required more than policy announcements, stressing the need for sustained implementation, institutional accountability and a change in national attitude towards production.

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Nigeria, he maintained, must move beyond being a major consumer of foreign products to developing the capacity to manufacture what it needs, improve the quality of its products and export goods and services demanded by the global market.

Segun Ajayi