Nigeria’s factories face up to ten‑fold higher production costs than Asian rivals

Nigerian manufacturers are paying between two and ten times more than counterparts in Vietnam and China for electricity, credit and logistics, according to Kamar Bakrin, executive secretary of the National Sugar Development Council (NSDC). Industrial electricity costs about 15 cents per kilowatt‑hour on the national grid and can rise to nearly 30 cents when factories rely on diesel generators, compared with roughly 8 cents in Vietnam and 10 cents in China. Nigerian factories spent an estimated ₦1.34 trillion last year generating their own power.

Working‑capital costs in Nigeria range from 27 % to 35 % of production, versus about 9 % in Vietnam and 3 % in China. On the World Bank’s Logistics Performance Index, Nigeria ranks 88th of 139, well behind Vietnam (43rd) and China (19th). Manufacturing contributes roughly 8 % of Nigeria’s GDP and capacity utilisation has slipped to 57.7 %. Bakrin noted that recent macro‑economic reforms have halved inflation and raised foreign‑exchange reserves to $51 billion, giving factories a rare window to plan and invest as global supply chains shift and the African Continental Free Trade Area expands market access.