NESG: Nigeria’s high production costs threaten industrial competitiveness
By Favour Ulebor
The Nigeria Economic Summit Group (NESG) has expressed concerns over high production costs, unreliable electricity, and inadequate logistics infrastructure, which it argues are hindering Nigeria’s industrial competitiveness. The group has called for the establishment of a council within the Presidency to coordinate industrialization policies effectively.
Lumun Feese, co-facilitator of the NESG, emphasized the need for a unified approach to industrial development during a breakout session focused on constructing an integrated industrial ecosystem at the 32nd Nigeria Economic Summit in Abuja.
Feese noted that Nigeria has slipped from eighth to fourteenth on the African Development Bank’s Industrialization Index. Although she acknowledged that changes in methodology and the inclusion of additional countries influenced this ranking, she stressed the importance of maximizing Nigeria’s economic potential.
“We are not maximizing our potential and our large economy,” Feese remarked, questioning how Nigeria could compete with countries like South Africa when faced with high production costs.
To address these challenges, Feese proposed the creation of an industrialization, competitiveness, and regional integration council. This council would serve as a central coordinating authority within the Presidency, aiming to align government policies, enhance the implementation of the National Industrial Policy, and foster greater private-sector involvement.
She highlighted that Nigerian businesses require reliable electricity, efficient transportation systems, and reduced production costs to fully benefit from the African Continental Free Trade Area, which offers access to a broader continental market.
Feese’s recommendations stem from consultations regarding various sectors, including mining, the blue economy, power, oil and gas, and industrial competitiveness. She urged businesses and other stakeholders to maintain their engagement with the NESG’s Industrial Policy Commission, noting the significance of coordinated policies and consistent implementation for achieving substantial industrial growth.
During the session, other stakeholders also identified significant barriers to industrial progress, such as limited access to financing, shortages of skilled labor, regulatory obstacles, security issues, and inadequate export infrastructure.
Gerald Okunsebor, Special Assistant on Strategy to the Minister of State for Industry, called for increased awareness of the National Industrial Policy along with a comprehensive implementation framework that includes defined responsibilities, timelines, and accountability mechanisms. He also advocated for a central knowledge-management system to ensure continuity in industrial development policies across successive administrations.
