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NESG Blames Energy Costs, Poor Funding for Manufacturing Decline
The Nigerian Economic Summit Group (NESG) has raised alarm over the decline of Nigeria’s manufacturing sector, blaming high energy costs, import competition, inadequate financing and weak industrial coordination for poor productivity.
Ahead of the 32nd Nigerian Economic Summit, NESG said manufacturing’s share of GDP has been shrinking, with the sector failing to build strong backward and forward linkages typical of industrialising economies.
“Energy costs remain crippling, with manufacturers frequently citing electricity as their single largest operational constraint,” the group stated.
It noted that Nigeria continues to export raw materials and import finished goods despite its vast resources and large domestic market, describing the imbalance as a structural weakness that suppresses value creation and jobs.
NESG also criticised the absence of an integrated industrial policy, saying manufacturers lack coordinated support through tariffs, local content rules and targeted financing. Capital has flowed into financial services and real estate, while manufacturing and agro-processing remain underfunded.
The group highlighted agriculture as a major opportunity, noting that it employs 36% of Nigeria’s labour force but suffers post-harvest losses of 30–40% due to poor storage, weak cold-chain infrastructure and limited mechanisation. Expanding agro-processing could reduce food insecurity, create jobs and cut imports.
NESG said the summit will explore measures such as Special Economic Zones, fiscal incentives for value-added production, blended finance instruments and reforms to redirect investment into productive sectors.
The 32nd summit, themed “Growth that Works: Delivering Jobs, Productivity and Shared Prosperity”, will be held October 26–27, 2026, at Transcorp Hilton, Abuja, bringing together manufacturers, agro-industrialists, investors and policymakers to chart a path toward industrial revival.
