The manufacturing sector has the potential to enable Nigeria to achieve the target of becoming a $1 trillion economy by 2030 with necessary structural reforms and strategic investments.

Director General of the Nigerian Association of Chambers of commerce, Industry, Mines and Agriculture (NACCIMA), Olusola Obadimu, stated this, in Lagos, at the 2024 National Conference of the Commerce and Industry Correspondents Association of Nigeria (CICAN) with the theme, “Manufacturing: $1 trillion GDP Target by 2030: Realities and Possibilities”.

Obadimu, who was represented by William Inya, a Research Officer at NACCIMA, said that the sector can boost the economy significantly with improved infrastructure, enhanced access to financing, and policies that promote local production.

His words: “The manufacturing sector, which currently contributes approximately 9% to Nigeria’s GDP, has the potential to be a game-changer. “With improved infrastructure, enhanced access to financing, and policies that promote local production, this sector could significantly boost economic output. “Countries with similar aspirations have leveraged manufacturing to increase their GDP contributions to as much as 20–30%, creating jobs and fostering economic inclusivity.”

He however highlighted the several challenges that could continue to hamper the achievement of the set target.

“The infrastructure deficit, which currently stands at 35% of GDP, undermines efficiency and increases production costs. Inadequate power supply, estimated to cost businesses over $29 billion annually, further complicates the operating environment. “Additionally, recent fluctuations in the naira and inflationary pressures exacerbate these issues, emphasizing the need for robust and stable macroeconomic policies,” he stated.

The NACCIMA DG expressed the firm belief that a thriving manufacturing sector is pivotal for Nigeria’s economic transformation.

He said: “We urge the government to: Prioritize investments in transportation, energy, and technology to reduce production costs; Develop more industrial parks and special economic zones to enhance economies of scale and attract foreign investment; Invest in local raw material sources to minimize reliance on imports and enhance competitiveness; and Equip the workforce with the skills necessary for modern manufacturing processes.

“Achieving a $1 trillion GDP by 2030 is ambitious but within reach if we align our priorities, forge public-private partnerships, and implement pragmatic policies.”