Nigeria primed to be Africa’s industrial powerhouse— Ex-UNIDO DG
Former UNIDO Chief Calls for Strategic Action to Elevate Nigeria’s Industrial Sector
By Yinka Kolawole
LAGOS — Dr. Kandeh Yumkella, a former Director-General of the United Nations Industrial Development Organization (UNIDO), emphasized Nigeria’s potential to emerge as Africa’s industrial hub during the 6th Adeola Odutola lecture on Thursday. The event, organized by the Manufacturers Association of Nigeria (MAN), focused on the theme “Leveraging National Industrial Policy to Position Nigeria as Africa’s Industrial Hub.”
Yumkella highlighted that Nigeria possesses crucial advantages, including a large market, abundant natural resources, and a robust entrepreneurial spirit. He argued that the nation’s industrial growth is hindered not by a lack of ambition, but by an inability to effectively translate potential into concrete economic outcomes.
“Nigeria has the essential foundations for an industrial powerhouse,” Yumkella stated, pointing to the country’s financial depth and strategic position within the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA). Despite these strengths, he noted that manufacturing contributes only 7 to 8 percent of Nigeria’s Gross Domestic Product (GDP), with manufactured exports accounting for a mere 3 percent of total export revenue.
Yumkella called attention to Nigeria’s overall exports of goods and services, which represent only 10.7 percent of GDP. “This underscores the urgent need to strengthen domestic production and expand access to international markets,” he said.
The former UNIDO chief also acknowledged the vital role of Nigeria’s 41 million micro, small, and medium enterprises (MSMEs) in demonstrating the private sector’s energy and resilience. However, he stressed that “potential is not performance.”
One significant barrier to Nigeria’s industrial advancement, according to Yumkella, is the unreliable electricity supply. He reported that the national grid supplies between 5,000 to 6,000 megawatts, while demand exceeds 20,000 megawatts. He revealed that manufacturers spent an estimated N1.34 trillion on self-generated electricity in 2025, a substantial increase from N781.68 billion in 2023, with energy costs comprising 35 to 40 percent of overall production expenses.
Yumkella urged the government to leverage the nation’s abundant natural gas, hydropower, and solar resources to ensure consistent and affordable electricity for industries. He also advocated for the promotion of regional energy markets throughout West Africa to enhance industrial competitiveness.
