Nigeria’s ambition to build a globally competitive manufacturing economy will depend less on industrial policies and more on the country’s ability to create a business environment that supports enterprise, investment and productivity, Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, has said.
 
Speaking at the Lagos Chamber of Commerce and Industry (LCCI) Mid-year Economic Review and Outlook in Lagos recently, Yusuf argued that while the Nigeria Industrial Policy (NIP) 2025 represents one of the country’s most comprehensive industrial policy frameworks in decades, its success will be judged by implementation rather than design.
 
Noting that industrial policy provides a strategic direction, he said competitiveness is what delivers economic transformation.
 
He added that the current NIP is an improvement over previous strategies as it aligns with Nigeria’s Agenda 2050, the National Development Plan and opportunities under the African Continental Free Trade Area (AfCFTA).
 
However, he warned, Nigerian manufacturers cannot compete while burdened by unreliable electricity supply, high logistics costs, expensive financing, poor infrastructure, regulatory bottlenecks and policy uncertainty.  
 
“Even the best-designed industrial strategy will struggle to achieve its objectives if businesses continue to operate in an uncompetitive environment,” he said.
  
To reposition the manufacturing sector, he proposed a five-pillar National Manufacturing Competitiveness Framework that emphasises reducing production costs through reliable power supply, efficient transport infrastructure, affordable industrial finance, and predictable taxation.
 
It also prioritises productivity and innovation by encouraging investment in research and development, automation, digital manufacturing, artificial intelligence and Industry 4.0 technologies.
The third pillar focuses on strengthening domestic value chains by integrating agriculture, mining, manufacturing and services to increase local value addition and reduce dependence on imported inputs.
Identifying export competitiveness as the fourth pillar, he stressed that Nigeria must move beyond serving only its domestic market and strategically position its manufacturers to compete across Africa and global markets under the AfCFTA.

The fifth pillar centres on strengthening institutions through policy consistency, improved regulatory quality, efficient customs administration, contract enforcement and transparent governance to reduce business uncertainty and attract investment.

According to him, these five pillars collectively provide a national competitiveness strategy capable of transforming manufacturing into a major driver of productivity, exports, employment and inclusive economic growth.
  
Maintaining that industrial transformation requires a strong partnership between government and the private sector, with each playing clearly defined but complementary roles, he urged government to preserve macroeconomic stability, lower structural business costs, provide policy consistency and deploy industrial and trade policies strategically to support domestic production.

He noted that reliable electricity, efficient ports, affordable long-term finance and streamlined regulations are not merely infrastructure goals but essential determinants of manufacturing competitiveness.
 
“Every economic policy should be evaluated against one simple question: Does it reduce the cost of production and improve the competitiveness of Nigerian enterprises?” he said.

He called on manufacturers to invest in modern technology, improve operational efficiency, prioritise innovation, deepen local sourcing where commercially viable and invest heavily in workforce development.
 
He warned that Nigeria risks losing investment opportunities to more competitive economies if urgent reforms are not implemented.

He said technological disruption, shifting global supply chains, climate transition and changing geopolitical realities are increasingly directing investment toward countries with competitive production costs, efficient institutions and skilled labour.

Without a competitive manufacturing sector, he cautioned, Nigeria would continue to face sluggish economic growth, rising unemployment, import dependence and persistent pressure on FX. He said although AfCFTA presents enormous opportunities for Nigerian manufacturers, market access alone would not guarantee success.

He argued that manufacturing must occupy a central place in Nigeria’s economic strategy because of its capacity to create jobs, increase exports, stimulate innovation and strengthen economic resilience.

While acknowledging Nigeria’s abundant natural resources, large domestic market, entrepreneurial population and growing digital economy, Yusuf stressed that the country’s greatest challenge lies in translating these advantages into globally competitive production.