Outdated policy nearly crippled manufacturing sector – NIPSS

The Director-General of the National Institute for Policy and Strategic Studies, Prof Ayo Omotayo, has revealed that an outdated industrial policy nearly undermined Nigeria’s manufacturing sector before the Federal Government replaced it with a new framework.

Omotayo disclosed this on Monday while speaking as the Special Guest of Honour at the Manufacturers Association of Nigeria’s 54th Annual General Meeting and Made-in-Nigeria Exhibition in Lagos.

He said NIPSS reviewed the manufacturing sector in 2023 and discovered that Nigeria’s industrial policy had become obsolete and threatened the growth of local production.

According to him, NIPSS then engaged the leadership of the Manufacturers Association of Nigeria to address the challenges, leading the Ministry of Industry, Trade and Investment to develop and enact a new industrial policy.

Omotayo, however, warned that the new policy would only deliver results if the government and other stakeholders implemented its provisions consistently.

“Going forward, it is not policy that will make manufacturing work. Policy has its own role, but eventually, it is how we approach implementation of policy. It is how we try to ensure that the provisions of the policies are used for the benefit of manufacturing that will make the difference,” Omotayo said.

He stressed that manufacturing must play a bigger role in Nigeria’s economic expansion, especially if the country intends to achieve its $1tn economy ambition.

“Most importantly, one thing is very important: if Nigeria is going to work, economically, manufacturing must work. If Nigeria is going to reach a $1tn economy, manufacturing must contribute substantially to it. We have carried out studies, and I believe in our own study, we found manufacturing is capable of contributing far more to the GDP of Nigeria beyond what it is currently contributing,” he added.

Also speaking, the President of MAN, Francis Meshioye, urged the Federal Government and other public institutions to enforce a “Nigeria First” policy and prioritise locally produced goods.

Meshioye said the forthcoming national, state and local government elections provided an opportunity for government agencies and political parties to demonstrate their commitment to made-in-Nigeria products.

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“The approaching national, state and local government elections offer a great opportunity to demonstrate patronage of made-in-Nigeria. This national imperative must be adhered to by the Independent National Electoral Commission, the different political parties and other government agencies that are connected with the exercise. All should give priority to the patronage of made-in-Nigeria items at this electioneering period and at all times,” Meshioye said.

He also highlighted the rising cost of production, saying manufacturers spent about N1.35tn on alternative power in 2025, compared with N1.11tn in 2024. Meshioye added that manufacturers spent N3.53tn importing raw materials in the first six months of 2025, underscoring the pressure on local producers.

He said the success of the Made-in-Nigeria agenda should be measured by tangible improvements in the sector.

“The performance of the Made-in-Nigeria agenda should be assessed through measurable industrial outcomes. These include increased domestic value addition, lower production costs, higher capacity utilisation, stronger domestic supply chains, increased manufacturing investment and greater participation in regional and international markets,” Meshioye said.

The Director-General of MAN, Segun Ajayi-Kadir, said sustained implementation remained critical to transforming the new industrial policy into economic gains.

He said the Made-in-Nigeria Exhibition should serve not only as a platform for displaying locally produced goods but also as a link between manufacturers and commercial opportunities.

“The purpose of this exhibition is not only to display products. It is to create a platform where the productive capacity of Nigerian industry can be seen, understood and connected to commercial opportunities. From the engagements we have had today, it is clear that there is substantial capacity within the Nigerian manufacturing sector,” Ajayi-Kadir said.

He added that Nigeria could not industrialise through policy adoption alone, stressing the need for consistency and long-term commitment.

“The Nigeria Industrial Policy provides a shade and a clear roadmap, but nations do not industrialise by adopting policies alone. They industrialise by implementing them consistently,” the MAN DG said.