The Minister of State for Industry, Federal Ministry of Industry, Trade and Investment, Senator John Owah Enoh, seems to have set a huge task for himself. His dream is to make Nigeria an industrial hub. However, manufacturers and financial reports of operators show that the terrain is getting tougher by the day, reports FESTUS OKOROMADU.
Tough time, they say don’t last, but tough people do. No doubt the same applies to nations and corporate entities. Nigeria is not an exception to this axiom, hence by implication in the face of recent divestment from the country by some multinational firms, the only viable option is perhaps to strategise for tough time survival.
While it’s obvious that a huge vacuum was created by the exit of the multinational manufacturing companies, it’s also true that it opened up a window of opportunity for local operators to excel.
However, stakeholders have continued to call for government’s support in several areas. To this end, the Federal Ministry of Industry Trade and Investment faces the challenge of steering government-private sector collaboration to unlock the nation’s industry cum manufacturing potential.
Interestingly, recent developments show that the government is working hard to engage private sector operators with a view to ensuring a remarkable improvement in supporting local industries, by ways of expanding capacity, and positioning the country as a competitive global manufacturing hub.
Last Thursday, the Minister of State for Industry, FMITI, Senator John Owah Enoh, in an initiative aimed at transforming the nation’s industry sector, inaugurated the Industrial Revolution Work Group in Abuja.
The IRWG, according to Senator Enoh, is established with a clear mandate: to design, champion, and implement industrial strategies that will revive dormant industries, empower the next generation of manufacturers, and strategically position Nigeria in the global industrial economy.
“Together, we will drive industrialization, create jobs, and build a stronger economy for all Nigerians”
Speaking at the inauguration ceremony, he said, “This initiative directly supports the Presidential Council on Industrial Revitalization Roadmap, approved by the Federal Government in October 2023 and chaired by President Bola Tinubu. The IRWG serves as a critical bridge between Nigeria’s current industrial landscape and its future as an industrial leader, ensuring stakeholder engagement, evidence-based policy development, and consistent implementation.”
The IRWG includes representatives from key ministries, agencies, and the private sector. Chaired by the Minister of State for Industry, with the MAN President as Co-Chairman, members include the Permanent Secretary of FMITI, heads of relevant agencies, and directors of industrial development.
Other members include representatives from the Ministry of Finance, Tariff Review Board, Ministry of Power, Nigeria Customs Service, Nigeria Ports Authority, and Raw Materials Research and Development Council.
Others are presidential appointees, including the Special Adviser to the President on Industry, Trade & Investment and the Senior Special Assistant on Industry, Trade & Development will provide strategic guidance.
The private sector is represented by MAN, NACCIMA, NECA, NASME, and NASSI.
Prior to this, the ministry in collaboration with RMRDC launched the Raw Materials Management Information System and an e-registration portal. The portal was developed by RMRDC to drive industrial growth and reduce import dependence.
Explaining the rationale behind the initiative, the Director General of the RMRDC, Professor Nnanyelugo Ike-Muonso, emphasised that Nigeria’s economic prosperity depends on the effective utilisation of its vast human and material resources.
He stated that Nigeria spends $10 billion annually on raw material imports despite having these resources locally, while $25 billion is lost yearly due to manufacturing constraints.
According to him, the RMMIS and e-registration portal will streamline sourcing, enhance transparency, connect businesses with local suppliers, and improve regulatory oversight to strengthen our industrial sector.
He urged government agencies, manufacturers, and investors to embrace this initiative, saying it’s time to maximize local resources, boost industrial capacity, and reduce import reliance for a stronger Nigerian economy.
Prof. Ike-Muonso hinted that the implementation and utilisation of the portals will transform Nigeria into a data-driven economy that can fuel the economic and industrial agenda of President Tinubu’s Renewed Hope Agenda.
Boosting public – private sector relationship
Part of efforts to boost manufacturing, drive industrial growth and evaluate the economic opportunity currently offered by the sector, the Minister of State for Industry, earlier in February announced a nationwide industrial tour across the country’s six geopolitical zones.
The tour, according to him, will facilitate direct engagement with manufacturers, MSMEs, investors, and policymakers to assess challenges, explore investment opportunities, and strengthen Nigeria’s industrial sector.
“The tour begins in the South West (Lagos and Ogun States), focusing on textiles, automotive, and export-driven industrialization.
“Lagos, as Nigeria’s economic nerve center, is home to some of the largest industrial estates and export processing zones, making it a critical starting point for discussions on boosting local production, expanding trade opportunities, and supporting industrial innovation.
“From there, we will cover the North Central, North West, North East, South East, and South South regions, ensuring every zone contributes to Nigeria’s industrialization agenda,” a statement on the matter explained.
According to the Ministry, the tour is to feature stakeholder roundtables, industrial site visits, investment forums, and policy discussions, stressing that it reinforces government’s commitment to economic growth, job creation, and sustainable industrialization.
“This is more than a tour—it’s a commitment to reimagine, realign, and revolutionize Nigeria’s industrial landscape,” Senator Enoh stated.
And true to his promise, on February 12, 2025, the Minister kicked off the tour of the South West region, engaging with key manufacturers and industrialists.
Lagos expedition
Lagos, being the commercial capital of Nigeria, took the first leg of the tour where the Minister visited five major companies across textiles, food processing, paints, dairy, and energy, gaining firsthand insights into their opportunities and challenges. These engagements, he stated, reinforced the need for stronger government-private sector collaboration to accelerate economic development, trade expansion, and local industry growth.
Sharing experiences from the tour of the Lagos axis, the Minister said he visited five major manufacturing firms.
“At Sunflag Nigeria Limited, a leading textile manufacturer, we discussed high operational costs, power challenges, and competition from imports—issues requiring stronger local content policies, anti-smuggling measures, and improved financing.
“At GB Foods Nigeria, we explored strategies to scale food production, reduce imports, and create jobs through better supply chain efficiency, forex access, and agro-processing partnerships. Berger Paints Nigeria continues to innovate despite forex volatility, credit access issues, and high raw material costs, emphasizing the need for local raw material production and better financing options.
“At FrieslandCampina WAMCO, we examined the success of their Dairy Development Programme, which integrates local farmers to reduce imports and strengthen rural economies through better infrastructure and backward integration.
“Rounding off the day, Mojec Meter Company highlighted its role in power distribution, stressing the need for policy reforms, tax incentives, and local patronage to drive industrial growth and improve the energy sector,” the minister explained.
According to the Minister, the engagements underscored the vital role of manufacturing in Nigeria’s economic transformation.
He agreed that the recurring challenges bedeviling the sector persist, listing them to include power and infrastructure deficits, limited access to finance and forex, regulatory bottlenecks, and the need for stronger public-private partnerships to drive investment, innovation, and expansion.
“Addressing these barriers is key to unlocking the full potential of our manufacturing sector,” he insisted.
He assured that the Ministry remains committed to fostering an enabling environment for industries to thrive.
“We will continue working with stakeholders to implement policies that boost local production, reduce import dependency, and position Nigeria competitively in the global market,” stated.
Ogun as attractive destination for investors
Senator Enoh described Ogun State as a key industrial hub, home to leading manufacturers across sectors such automobile, cement, agro-processing, and fast-moving consumers’ goods.
The Minister, who met with Governor Dapo Abiodun, said their discussions were centered on enhancing government-private sector collaboration, improving infrastructure, and creating a more enabling environment for industries to thrive.
“A major highlight of our discussions was Ogun State’s readiness to host the largest Cotton and Apparel Industry in West Africa, expected to create 40,000 jobs within the Special Processing Zone.
“Strategically located within the Ogun Agro-Cargo and Passenger Airport aerotropolis, this industry will benefit from Nigeria’s largest Customs facility, designed to enhance trade and investment,” he said.
He commended the Governor Abiodun’s administration for its dedication to industrial development, including initiatives that support businesses, improve road networks, and enhance security, making Ogun State an attractive destination for investors.
He added that, “Stronger collaboration between the Federal Government, state governments, and the private sector is essential to achieving sustainable economic growth, reducing import dependency, and creating more jobs for Nigerians.”
He announced the Ministry’s commitment to working with state governments to foster an industrial-friendly ecosystem that positions Nigeria as a competitive global manufacturing hub.
“I look forward to further engagements that will unlock new opportunities and accelerate industrial growth in Ogun State and beyond,” he stated.
Detailing his working experience in the state, the Minister said, “I visited key manufacturing companies in Ogun State, a leading hub for industrialization and economic development. These industries are not only creating jobs but also driving local production, reducing import dependency, and strengthening Nigeria’s manufacturing sector.
“My first stop was at Tropical General Investments (TGI) Group – West African Soy Industries Limited (WASIL), a company leveraging local raw materials and world-class manufacturing to produce top-quality FMCG, agricultural inputs, industrial chemicals, homecare products, and pharmaceuticals. Their commitment to value addition and exports showcases the potential of Nigerian industries on a global scale.
“Next, I engaged with Veenocks Ltd, a manufacturer of high-quality porcelain tiles.
Their focus on innovation, sustainability, and cutting-edge technology is positioning them as a leading producer of wall and floor tiles in Sub-Saharan Africa. Strengthening the local tile industry will boost employment, reduce imports, and enhance Nigeria’s construction sector.
“At Coleman Wires & Cables Ltd, I witnessed firsthand the resilience of a generational business that has grown into West Africa’s largest cable manufacturer. Coleman’s expansion and investment in high-quality electrical cables for oil, commercial, and residential industries highlight Nigeria’s ability to produce world-class industrial products. Their success story underscores the importance of long-term investment, innovation, and industrial capacity building.
“I also visited Equipment and Protective Application International Limited (EPAIL), an indigenous company specializing in bulletproof vests, ballistic helmets, and defense-related equipment. Their commitment to local research and development in security solutions strengthens Nigeria’s defense sector while creating high-value jobs and fostering self-reliance in critical industries.
“Finally, at Mikano International Limited, I explored their ultra-modern Karameh Industrial City, home to Mikano Motors, Generator and Marine assemblies, as well as food, medical, and brake pad factories. Mikano’s diverse industrial investments demonstrate the potential for multi-sectoral growth within Nigeria’s industrial ecosystem.”
He called for collaboration between governments and the private sector in the effort to position the country as a competitive global manufacturing hub.
“Together, we will drive industrialization, create jobs, and build a stronger economy for all Nigerians,” he emphasized.
Manufacturers express contrary views on government policies
Meanwhile, stakeholders in Nigeria’s industrial sector remain sceptical as to the determination of the government to work the talk. They noted that while, the Ministry of Trades, Industry and Investment is keen about expanding the industrial space, recent government policies from other arms of government appear inimical to achieving the desired objectives.
Citing the government’s drive towards revenue increase in recent times, stakeholders and experts say the additional burden placed on the economy does not encourage the quest for industrialization.
According to the Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, the current economic realities are at variance with the proposed dreams pursued by the Ministry of Trade, Industry and Investment.
He noted that while the ministry means well for the sector, the economic realities on ground present no relief for manufacturers. He wondered how the government expects industrialists to continue investment when they cannot sell the goods they have in stock.
“The purchasing capacity of Nigerians have declined so our warehouses are filled with unsold goods, meanwhile, the cost of production continues to increase everyday with the cost of energy, transportation, manpower and now telecommunication consistently rising.
“Only recently, the government through the Nigerian Customs Service introduced a 4 percent free-on-board valuation on import, don’t forget, manufacturers equally import raw materials, if the policy had not been reversed the implication would have been further hike on production cost,” he said.
On his part, Ogun state chapter chairman of MAN, George Onafowokan, noted that while the government has managed to stabilise the economy to some extent, the manufacturing sector still has lots of challenges, especially as new taxes and tariff hikes are introduced.
He noted that the new introduction further weakens consumers’ purchasing power thus affecting manufacturers negatively.
“It is easy to slam tariffs but note that your population will suffer from it if it is on essential goods or services. Hence, manufacturers are crying out of declining sales”
Speaking on the relationship between rising cost and purchasing potentials, an Abuja based economist, Dr. Paul Alaje noted that, the continuous hike of prices of essential services will be ubiquitous in the economy.
“From electricity to telecom, to port duties, inflation is surely a value ‘eroder’. Money illusion is one of the most confusing concepts to government globally.
“It is easy to slam tariffs but note that your population will suffer from it if it is on essential goods or services. Hence, manufacturers are crying out of declining sales.”
Meanwhile, an analysis of a selected companies listed on the Nigerian Exchange Limited confirm an increasing case of rise in cost of sales by manufacturing companies in the country, a situation that financial experts have attributed to the mounting pressure due to inflation, foreign exchange volatility, and escalating production costs in the sector.
Companies analysed include BUA Foods Plc, Guinness Nigeria Plc, UAC of Nigeria Plc, Fidson Healthcare Plc, Berger Paints Nigeria Plc, SCOA Nigeria Plc, Learn Africa Plc, Neimeth International Pharmaceuticals Plc, FTN Cocoa Processors Plc, and Honeywell Flour Mills Plc.
The analysis revealed that the cost of sales for the 10 manufacturing and consumer goods companies in Nigeria for the financial year ended December 31, 2024 showed a 72.47 percent surge to N665.95 billion, from N386.16 billion recorded in 2023.
The cost of sales represents the direct expenses incurred in producing goods and services sold by a company. It includes costs such as raw materials, manufacturing expenses, and logistics.
BUA Foods Plc recorded the highest cost of sales as its cost of sales soared to N248.15bn in 2024, marking a 76 per cent increase from N140.96bn in 2023.
Guinness Nigeria Plc followed closely, jumping to N200.60 billion in 2024 from N96.66 billion in 2023. The 107 percent surge in production costs signals the pressure of inflation on raw material sourcing, packaging, and energy costs.
UAC of Nigeria Plc recorded an increase in its cost of sales, rising to N151.32 billion in 2024 from N99.21 billion in the previous year, representing a 52.5 percent jump.
Fidson Healthcare Plc, a player in the pharmaceutical sector, reported N49.28 billion in 2024, up from N31.98 billion in 2023, reflecting a 54 percent increase.
Berger Paints Nigeria Plc saw its cost of sales rise to N6.87bn in 2024 from N5.26 billion in 2023, representing a 30.6 percent increase.
SCOA Nigeria Plc recorded a decline, dropping to N4.38 billion in 2024 from N9.20 billion in 2023, reflecting a 52 percent decrease.
Learn Africa Plc reported N2.18 billion in 2024, up from N1.33 billion in 2023, representing a 63.9 percent increase.
Neimeth International Pharmaceuticals Plc recorded N2.48 billion in 2024, compared to N1.48 billion in 2023, reflecting a 67.5 percent rise.
Similar to Fidson Healthcare, the company has been affected by the escalating costs of pharmaceutical ingredients, making drug production more expensive.
FTN Cocoa Processors Plc recorded N536.59 million in 2024. However, there was no available figure for 2023 for comparison.
Honeywell Flour Mills Plc reported N248.58 million in 2024, a rise from N100.51 million in 2023, representing a 147 percent increase.
Industry analysts warn that if manufacturers cannot offset rising costs with increased revenue, profit margins will continue to shrink, potentially leading to higher product prices, reduced dividend payouts, and operational downsizing.
