Manufacturers Urge Nigeria to Boost Local Production and Reduce Imports

Manufacturers in Nigeria are urging the government to take immediate action to strengthen local manufacturing. This call was made by Segun Ajayi, the Director-General of the Manufacturers Association of Nigeria, during a workshop in Lagos on Wednesday.

Ajayi, represented by Oluyinka Omojolaibi, highlighted the risks of Nigeria’s heavy reliance on imported goods. He noted that this dependence exposes the economy to issues like foreign exchange pressures and inflation.

Despite having a large market and many natural resources, Nigeria’s manufacturing output is low compared to other African countries. For instance, Nigeria’s manufacturing value added is significantly less than that of Egypt and South Africa.

Ajayi pointed out that challenges such as unreliable electricity, high interest rates, and expensive imported materials hinder local manufacturers. In 2025, manufacturers spent over 1 trillion Naira on alternative power sources, which accounted for more than half of their operating costs.

He emphasized that simply building more factories won’t solve the problem. A coordinated strategy involving the government, financial institutions, and educational bodies is essential. Key steps include improving access to affordable financing, investing in education and infrastructure, and encouraging technology transfer.

Jonas Nzeagwu from the National Office for Technology, Acquisition and Promotion also spoke at the event. He stressed the need for better standards and quality control to help Nigerian products compete in local and international markets.

Nzeagwu called for a focus on expanding Nigeria’s export base beyond oil, suggesting that the country should also promote agricultural products and manufactured goods. He urged all levels of government and the private sector to work together to achieve these goals.