The manufacturing sector’s contribution to the economy has dropped to three per cent from 7.7 per cent it was in 2019, Chair of the Nigerian Economic Summit Group (NESG), Olaniyi Yusuf, has lamented.

Yusuf, who stated this in his keynote address at the Manufacturing Association of Nigeria (MAN) Ikeja branch’s 58th Annual General Meeting (AGM), held in Ikeja, Lagos, said between 2019 and 2024, the sector’s share of GDP fell from 9.1 per cent to 8.2 per cent.

“Capacity utilisation has dropped, and more worrying, the sector is losing jobs rapidly rather than creating jobs,” he said.

The theme of the AGM was, ‘Driving economic growth: The role of MAN in advancing the Nigeria First policy for sustainable development.

Yusuf argued that the role of a strong manufacturing base is vital, saying it is time to move from intention to execution in delivering a ‘Nigeria First’ economic strategy, which must place production, inclusion and national prosperity at the centre of the national development model.

“According to the World Trade Organisation (WTO), nearly 1,800 trade restrictive measures have been introduced globally in the last five years, covering over $1.5 trillion in trade flows. Everyone is rethinking what it means to produce, protect and prosper. Countries that fail to build internal production capacity and also fail to develop productive resilience risk becoming dumping grounds for imports.

“However, countries that act decisively can harness this disruption to rebuild, restructure and reposition their economies for long-term competitiveness; especially now that trade tariffs are being weaponised as a sanction mechanism for non-trade related issues,” he said.

“The IMF has warned that without meaningful reforms, Africa’s largest economies will become spectators in global trade, rather than drivers. We must not be left behind”, he added.

Adding that industrial development extends beyond production to what is consumed, he said if local producers are not supported with local consumption, the first line of competitiveness would be compromised.

“A resistant manufacturing sector must be anchored in a structured, loyal and incentivised domestic market, and this goes beyond any patriotic slogan that can be coined,” he said.

Noting the weak integration between agriculture, the extractive industry and manufacturing, he said the manufacturing landscape remains narrow and underdeveloped.

Urging MAN to move beyond advocacy and become a driver of national industrial transformation, he said manufacturers must build strong local supply chains, deepen linkages to agriculture and mining to retain value within Nigeria, among others.

The Lagos State governor, Babajide Sanwo-Olu, represented by the state commissioner for Commerce, Cooperatives, Trade and Investment, Folashade Ambrose, noted that the theme is timely and critical, as the policy challenges everyone to look inwards, prioritise local production and empower indigenous enterprises as well as elevate Nigeria’s competitive advantage in the global marketplace.

Without manufacturing, he said, no nation can achieve sustainable growth, create jobs or reduce poverty.

He promised to continue to create an enabling environment where businesses can thrive, adding that the Lagos State Electricity Policy would impact the energy needs of industries by providing reliable power and streamlining their energy needs efficiently.

Acknowledging the challenges still being faced by manufacturers in Lagos, he said their needs would henceforth be prioritised and the ministry would work with MAN to provide innovative solutions to the challenges.

MAN President, Francis Meshioye, said that at the heart of driving economic growth in Nigeria is the manufacturing sector and that manufacturers must be supported in fostering growth and national development.

He said that while manufacturers are working hard to institutionalise the Nigeria First policy, the government should help them in turn by enforcing the implementation of the policy.

Calling on the government to prioritise infrastructure development and reduce the exorbitant power tariff as well as reverse the 50 per cent increase in port charges by the Nigeria Ports Authority (NPA), he said businesses are weighed down by too many burdens.

“We need single lending rates; we cannot borrow to produce at the present rates. We have been asking for a bank of manufacturers, strictly for the real sector, just as we have the bank of agriculture,” he said.

Chair, MAN Ikeja branch, Elder Robert Ugbaja, noted that the theme couldn’t be more timely seeing the current state of the country’s manufacturing sector, which he described as hovering on life support. He added that the Nigeria First policy demands collective action, strong institutions and bold leadership and urged manufacturers to lead the charge to transform the nation’s economy.