After more than three decades of steady decline in Nigeria’s industrial output, the Federal Government has unveiled an ambitious plan to revive the manufacturing sector — targeting a contribution of 20 to 25 percent of the nation’s GDP by 2030 under the forthcoming Nigerian Industrial Policy.
The new policy, designed to reposition manufacturing as a key engine of growth, seeks to strengthen local production, promote backward integration, improve access to finance, and foster stronger linkages between small and large enterprises.
Minister of State for Industry, John Enoh, disclosed this during the soft launch of the policy, noting that Nigeria’s manufacturing base has remained weak despite its potential to drive exports and job creation.
“Our goal is to reposition manufacturing as a major driver of economic growth, job creation, and export expansion,” Enoh said. “We are determined to raise the sector’s share of GDP to between 20 and 25 percent by 2030 through consistent reforms that improve power supply, financing access, and industrial infrastructure.”
Three Decades of Decline
Data from the National Bureau of Statistics (NBS) reveal that manufacturing’s contribution to real GDP has fallen sharply from over 20 percent in the early 1990s to below 9 percent in 2024, highlighting deep-rooted structural challenges in Nigeria’s industrial landscape.
The sector contributed 20.3 percent to GDP in 1992 but slipped to 9.20 percent in 2018, 9.06 percent in 2019, 8.99 percent in 2020, 8.98 percent in 2021, and 8.92 percent in 2022. It averaged around 9.0 percent in 2023, while preliminary figures for 2024 suggest it remained within the 9–10 percent range.
For the first nine months of 2025, manufacturing’s share of GDP stood at 8.35 percent, underscoring the urgent need for transformative reforms.
Hope for a Turnaround
The Manufacturers Association of Nigeria (MAN) projects a modest rebound, with the sector expected to contribute about 10.2 percent of real GDP by 2026, driven by improved policy alignment and gradual restoration of investor confidence.
With the imminent launch of the Nigerian Industrial Policy, stakeholders are hopeful that sustained implementation, infrastructural renewal, and targeted incentives could finally spark the long-awaited industrial revival needed to diversify Nigeria’s economy and reduce overreliance on oil.
