NESG Stresses Industrialisation as Cornerstone of Nigeria’s Economic Prosperity

The Nigerian Economic Summit Group (NESG) has reaffirmed that industrialisation remains the most viable path to unlocking the country’s full economic potential, creating jobs, and lifting millions out of poverty. Speaking at a recent policy dialogue in Abuja, the group emphasised that without a deliberate, sustained push toward manufacturing and value addition, Nigeria’s growth prospects will remain fragile and overly dependent on volatile sectors like oil.

In his address, NESG Chief Executive Officer, Dr. Tayo Aduloju, highlighted that industrialisation is not just a pathway to higher GDP but a foundation for sustainable development. He noted that while Nigeria has made strides in services and agriculture, the absence of a strong industrial base has hindered the economy’s capacity to absorb the nation’s expanding labour force. “No nation has achieved long-term prosperity without building a robust industrial sector. We must move beyond being a raw material exporter to becoming a producer of finished goods that can compete globally,” Aduloju said.

The NESG identified manufacturing as a critical driver of job creation, technology transfer, and economic resilience. According to the group, Nigeria’s manufacturing contribution to GDP remains below 10%, far behind emerging economies that have leveraged industrialisation to lift millions out of poverty. By developing industries such as agro-processing, textiles, petrochemicals, and electronics, the NESG believes Nigeria can create a more diversified and stable economic structure.

One major concern raised at the dialogue was Nigeria’s heavy dependence on imports for goods that could be produced locally. This dependence not only drains foreign exchange reserves but also exposes the economy to global supply chain disruptions. The NESG urged the government to create policies that encourage local production, protect nascent industries from unfair competition, and attract both local and foreign investment into manufacturing.

The group further stressed the need to address infrastructure gaps—particularly in power, transportation, and logistics—which currently hinder industrial productivity. High energy costs, unreliable electricity, and inefficient transport networks, they argued, make Nigerian industries less competitive compared to their counterparts in Asia and other African nations.

To tackle these issues, the NESG proposed a multi-pronged strategy, including targeted infrastructure investment, streamlined regulatory processes, and access to affordable financing for manufacturers. The group also called for strong partnerships between the public and private sectors to drive industrial growth, noting that industrial parks and special economic zones could provide the enabling environment for manufacturing to thrive.

Another key area of focus was skills development. The NESG emphasised that industrialisation requires a skilled workforce capable of operating modern machinery, managing production processes, and engaging in innovation. This, they said, calls for a revamp of Nigeria’s technical and vocational education systems to align with the needs of industry. “Human capital is the backbone of industrial success. We must invest in training programmes that equip Nigerians with the skills demanded by the industries of the future,” Aduloju stated.

In terms of financing, the NESG urged the Central Bank of Nigeria (CBN) and commercial banks to expand credit facilities for manufacturers, especially small and medium-sized enterprises (SMEs) that form the bulk of the industrial sector. Access to long-term, low-interest loans, they argued, would enable businesses to invest in modern equipment, scale up production, and compete effectively in domestic and export markets.

Trade policy also featured prominently in the discussions, with the NESG advocating for a balanced approach that supports local industries while enabling Nigeria to take advantage of opportunities presented by the African Continental Free Trade Area (AfCFTA). The group warned, however, that without strengthening local capacity, Nigeria risks becoming a dumping ground for foreign goods under the free trade framework.

Participants at the summit also addressed the role of technology and innovation in driving industrialisation. The NESG urged the government to incentivise research and development, adopt smart manufacturing practices, and support start-ups developing industrial solutions. They noted that leveraging digital technologies such as artificial intelligence, automation, and blockchain could boost efficiency, reduce costs, and open new market opportunities.

While acknowledging the challenges, the NESG expressed optimism that with the right policy framework, Nigeria could achieve significant industrial growth within the next decade. The group pointed to success stories in countries like Vietnam, Indonesia, and Ethiopia, which have rapidly expanded their manufacturing sectors through targeted reforms, investment in infrastructure, and human capital development.

The dialogue concluded with a call for collective action from government, the private sector, civil society, and international partners to place industrialisation at the centre of Nigeria’s economic strategy. The NESG stressed that this would not only boost GDP but also ensure inclusive growth by creating jobs, reducing inequality, and improving living standards.

According to Aduloju, “The choice is clear—either we continue on our current trajectory of slow, import-dependent growth, or we take bold steps to industrialise and secure a prosperous future. Industrialisation is not an option; it is a necessity.”

In the months ahead, the NESG plans to release a comprehensive policy blueprint outlining specific interventions needed to accelerate Nigeria’s industrialisation agenda. The document will address sector-specific strategies, investment priorities, and measurable targets to ensure that progress is both tangible and sustainable.