The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to place manufacturing and industrialisation at the centre of its economic agenda, stressing that the country’s newly rebased Gross Domestic Product (GDP) should reflect real, not just nominal, economic gains.
MAN’s Director General, Mr. Segun Ajayi-Kadri, made this call on Tuesday in Lagos while responding to the latest GDP figures, which show Nigeria’s economy grew by 3.13 per cent in the first quarter of 2025—an improvement from 2.27 per cent recorded during the same period in 2024.
Ajayi-Kadri described the GDP uptick as a positive sign of economic recovery but warned against interpreting the growth as a sign of structural transformation. He explained that the GDP rebasing, which resulted in a revised nominal GDP of $243 billion, primarily reflects improved data coverage—especially in agriculture, services, and the informal sector—rather than substantial productivity gains.
“The rebased GDP may present a statistically larger economy, but it doesn’t imply that Nigeria has become more productive or industrialised,” he said.
According to him, real GDP growth between 2020 and 2024 averaged just 1.95 per cent, underscoring the fragility of Nigeria’s productive base and its limited capacity to deliver sustainable, inclusive development.
He also highlighted a structural decline in industrial contribution, noting that the industry’s share of GDP fell from 27.65 per cent in the 2010 base year to 21.08 per cent under the 2019 rebased structure. This, he said, reflects a shift from production to low-productivity services.
“While the rebasing exercise shows a more diversified economy, it also reveals the underperformance of the industrial sector, particularly manufacturing—which should be the backbone of economic transformation,” Ajayi-Kadri added.
He urged the government to treat the rebased GDP not as a milestone for celebration but as a wake-up call for deep structural reforms. Reindustrialisation, he stressed, is critical for inclusive growth, increased export capacity, and reduced reliance on primary commodities and informal activities.
Ajayi-Kadri called for deliberate efforts to prioritise manufacturing through focused policies, improved infrastructure, and better access to long-term financing.
“Without a robust industrial base, GDP expansion risks becoming a hollow statistic,” he warned. “While a higher GDP figure might boost investor confidence and improve debt-to-GDP ratios, true economic confidence depends on structural resilience, industrial depth, and productivity growth.”
He further advocated for sustained industrial policy interventions, building on initiatives like the Industrial Revolution Working Group, to revitalise key sectors.
“This must include sector-specific strategies—ensuring reliable energy supply for manufacturers, incentivising local content, streamlining regulatory frameworks, and improving trade facilitation to enhance competitiveness,” he said.
Ajayi-Kadri also called for targeted support for struggling sub-sectors such as textiles and vehicle assembly, adding that a manufacturing-led growth strategy is essential to create jobs, reduce poverty, and ensure macroeconomic stability.
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