Nigeria urged to slash manufacturing costs to stay competitive in Africa
Executive Secretary of the National Sugar Development Council, Kamar Bakrin, warned that Nigeria must cut the high cost of production or risk losing its share of the African market under the AfCFTA. He presented a four‑point reform plan aimed at lowering electricity costs, financing rates and logistics inefficiencies. Bakrin said Nigerian factories pay between 15 and 30 cents per kilowatt‑hour, compared with about eight cents in Vietnam and ten cents in China, and that manufacturers spent roughly ₦1.34 trillion generating their own power last year. He noted that working‑capital interest rates range from 27 % to 35 %, versus around nine percent in Vietnam and three percent in China. Nigeria ranks 88th of 139 on the World Bank Logistics Performance Index, contributing to the sector’s low competitiveness. Manufacturing now accounts for only about eight percent of GDP and factory capacity utilization has dropped to 57.7 %. Despite a domestic market of about 230 million people and duty‑free access to 1.4 billion consumers across Africa, Bakrin argued the problem is not demand but production costs, which can be fixed through policy actions such as reducing industrial electricity tariffs and improving financing conditions.
Entities: African Continental Free Trade Area · Kamar Bakrin · National Sugar Development Council · Nigeria · World Bank
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 4 SOURCES] Factory capacity utilization in Nigeria has fallen to 57.7 %. (All articles)
- [● 4 SOURCES] Nigeria has a domestic market of about 230 million people and duty‑free access to 1.4 billion consumers under the African Continental Free Trade Area. (All articles)
- [● 4 SOURCES] Nigerian manufacturers spent about ₦1.34 trillion generating their own electricity last year. (All articles)
- [● 4 SOURCES] Nigerian manufacturers pay between 15 and 30 cents per kilowatt‑hour for electricity, compared with 8 cents in Vietnam and 10 cents in China. (All articles)
- [● 4 SOURCES] Nigeria ranks 88th out of 139 countries on the World Bank Logistics Performance Index. (All articles)
- [● 4 SOURCES] Manufacturing contributes about 8 % of Nigeria’s Gross Domestic Product. (All articles)
- [● 4 SOURCES] Nigerian manufacturers face interest rates of 27 % to 35 % on working‑capital loans, versus about 9 % in Vietnam and 3 % in China. (All articles)
- [● 4 SOURCES] Bakrin presented a four‑point plan to reduce production costs in Nigeria’s manufacturing sector. (All articles)