UN Ranks Nigeria 8th in Africa, 98th Globally on Industrialisation Index

Nigeria has been ranked 8th in Africa and 98th globally on the United Nations’ industrialisation index, according to the latest report assessing the performance of nations in promoting industrial growth and economic diversification.

The ranking, released by the United Nations Industrial Development Organization (UNIDO), measures the extent to which countries are advancing in areas such as manufacturing value addition, industrial output, competitiveness, and contribution of industry to national economic growth.

According to the report, Nigeria’s position reflects modest improvements in recent years but also underscores the challenges confronting Africa’s largest economy in achieving sustained industrial transformation. Despite its size and abundant resources, Nigeria continues to trail behind smaller African nations such as South Africa, Egypt, and Morocco, which occupy higher positions on the continental chart.

Officials said the country’s ranking was influenced by its slow pace in diversifying away from crude oil dependence, persistent infrastructure gaps, weak manufacturing capacity, and limited integration into global value chains. In contrast, countries higher up the index have made significant progress in expanding industrial exports, upgrading technology, and strengthening linkages between industries and other sectors of the economy.

The Minister of Industry, Trade and Investment, Dr. Doris Uzoka-Anite, reacting to the report, said the ranking was both a wake-up call and a validation of Nigeria’s ongoing reforms. She emphasised that the administration of President Bola Tinubu is determined to reposition the industrial sector as a driver of inclusive growth, job creation, and poverty reduction.

“We are not where we should be, but we are taking deliberate steps to improve the business environment, enhance access to finance for manufacturers, expand industrial clusters, and promote value addition across key sectors. Industrialisation is not an option for Nigeria; it is the only sustainable path to prosperity,” she said.

The UNIDO report noted that Africa as a whole has been making gradual progress in industrial growth, though the continent remains the least industrialised globally. Nigeria’s 8th-place ranking highlights its relative strength in market size and resource base but also exposes its vulnerabilities in productivity and competitiveness.

Economists have argued that Nigeria must prioritise electricity supply, infrastructure modernisation, and policy consistency if it wants to improve its standing. Dr. Adeola Adeniran, a development economist, explained that Nigeria’s ranking demonstrates the gap between potential and performance. “Nigeria has everything it takes to be among the top three in Africa. But unreliable power, policy flip-flops, import dependency, and weak local value chains are major bottlenecks,” he noted.

The manufacturing sector currently contributes less than 10 percent to Nigeria’s Gross Domestic Product (GDP), far below its potential. Analysts argue that increasing industrial contribution to GDP to at least 20 percent in the coming decade would significantly enhance Nigeria’s global competitiveness and create millions of jobs.

The UNIDO report also highlighted the importance of small and medium-sized enterprises (SMEs) in driving industrial growth. In Nigeria, SMEs account for over 80 percent of employment but face challenges such as limited access to finance, high operational costs, and regulatory hurdles. Addressing these constraints, experts say, will be critical in boosting the country’s industrial index ranking.

Some industry stakeholders, however, expressed cautious optimism. The Manufacturers Association of Nigeria (MAN) said the UN ranking was a fair reflection of reality but stressed that consistent government support could change the narrative. “We need predictable policies, stable power supply, and targeted incentives to make Nigerian industries more competitive. Without these, our ranking will remain stagnant,” MAN President Otunba Francis Meshioye stated.

On the global scale, countries such as Germany, China, the United States, and Japan dominate the industrialisation index due to their advanced technological infrastructure, manufacturing strength, and innovation-driven economies. African countries like South Africa, Egypt, and Morocco are emerging leaders on the continent, leveraging industrial policies and strategic investments to climb the ranks.

Nigeria, with its large population and strategic position, is seen as a sleeping giant that could transform into an industrial powerhouse if it effectively implements reforms. The federal government has already rolled out initiatives such as the Nigeria Industrial Revolution Plan (NIRP), renewed focus on local content, and partnerships with private investors to build industrial parks and free trade zones.

International partners have also pledged support. The United Nations Development Programme (UNDP) recently reaffirmed its collaboration with Nigeria to accelerate sustainable industrial growth, while development finance institutions continue to provide funding for infrastructure and SME development.

In the coming years, Nigeria’s ability to climb higher in the industrialisation index will depend on translating policies into tangible outcomes. This includes boosting exports, reducing import dependence, modernising agriculture-linked industries, and creating an enabling environment for innovation.

Observers believe that if Nigeria can leverage its population, domestic demand, and natural resources, while simultaneously addressing power, infrastructure, and governance gaps, it could rise significantly on both the continental and global rankings.

As Africa increasingly positions itself as the next frontier for industrialisation, Nigeria’s performance will be closely watched. The UNIDO report makes it clear that the country cannot afford to rely on its size alone but must take concrete steps to strengthen its industrial base.

For now, Nigeria’s 8th-place position in Africa and 98th globally is a reminder of both the progress made and the distance yet to be covered. Whether the nation can climb the ladder depends on sustained reforms, public-private collaboration, and a clear focus on industrial competitiveness as the cornerstone of long-term economic development.