According to reports by Vanguard News, a former Director-General of the United Nations Industrial Development Organisation (UNIDO), Dr Kandeh Yumkella, has stated that Nigeria holds the essential foundations to emerge as Africa’s industrial powerhouse. However, he emphasized that the nation must successfully translate its vast market, natural resources, and entrepreneurial capacity into competitive production and global exports.
Speaking in Lagos while delivering the 6th Adeola Odutola lecture titled “Leveraging National Industrial Policy to Position Nigeria as Africa’s Industrial Hub”—organized by the Manufacturers Association of Nigeria (MAN)—Yumkella highlighted the country’s strategic positioning within the Economic Community of West African States (ECOWAS) and the African Continental Free Trade Area (AfCFTA) as key advantages.
Potential Versus Performance
Yumkella pointed out that Nigeria’s primary industrial challenge stems not from a lack of ambition or enterprise, but from a failure to convert raw potential into measurable economic performance. He noted that manufacturing currently accounts for roughly seven to eight per cent of the Gross Domestic Product (GDP), while manufactured exports contribute only about three per cent of total export revenue. Furthermore, goods and services exports account for just 10.7 per cent of GDP.
“Nigeria’s 41 million micro, small and medium enterprises (MSMEs) testify to the energy and resilience of the private sector. But potential is not performance,” Yumkella remarked.
The Energy Crisis Hurdle
A major obstacle highlighted during the lecture is the country’s unreliable electricity supply. Yumkella noted that the national grid delivers between 5,000 and 6,000 megawatts against an estimated demand that exceeds 20,000 megawatts.
This deficit forces manufacturers to rely heavily on self-generation. According to the data cited, manufacturers spent an estimated N1.34 trillion on self-generated electricity in 2025, a significant rise from N781.68 billion in 2023. Energy currently accounts for between 35 and 40 per cent of total production costs.
To reverse these trends, Yumkella urged the government to leverage Nigeria’s abundant natural gas, hydropower, and solar resources to ensure reliable and affordable electricity for industries, alongside promoting broader regional energy markets across West Africa.