Nigeria could lose its competitive position in Africa’s emerging single market unless authorities address the structural challenges driving up production costs for local manufacturers, the National Sugar Development Council (NSDC) has said.
The warning was delivered by the Executive Secretary of the NSDC, Kamar Bakrin, during the technical session of the 17th National Council on Industry, Trade and Investment held in Enugu.
Bakrin said the African Continental Free Trade Area (AfCFTA) presents both an opportunity and a threat, noting that countries with lower production costs will naturally capture larger shares of regional trade while less competitive economies risk becoming destinations for imported goods.
According to him, the cost of doing business in Nigeria continues to place domestic manufacturers at a disadvantage against competitors in countries with cheaper electricity, lower borrowing costs and more efficient logistics systems.
He noted that many Nigerian factories still rely heavily on self-generated power because of inadequate electricity supply, significantly increasing operating expenses and reducing their ability to compete on price.
Bakrin also pointed to the country’s high lending rates, arguing that manufacturers face financing costs that are several times higher than those available in leading industrial economies. The expensive cost of capital, he said, limits expansion, investment and productivity across the sector.
Beyond financing and energy, he identified lengthy port procedures, multiple levies and inefficient transport corridors as additional obstacles preventing manufacturers from taking full advantage of opportunities created by AfCFTA.
To improve competitiveness, Bakrin called for coordinated action by federal and state governments, including the development of dedicated industrial power clusters, harmonisation of taxes and levies, and the removal of bottlenecks affecting the movement of goods.
He also proposed a performance-based ranking system for states to measure competitiveness in areas such as infrastructure, logistics, access to land and the ease of establishing manufacturing operations.
According to him, Nigeria should work towards lower industrial electricity tariffs, affordable long-term financing and faster cargo clearance at ports to enable local businesses compete more effectively with manufacturers across Africa.
Bakrin cited the rapid expansion of Nigeria’s urea industry as evidence that industries can achieve significant growth when supported by policies that reduce input costs and encourage investment.
His remarks add to growing calls from manufacturers for reforms aimed at lowering production costs, improving infrastructure and strengthening Nigeria’s position under the continental free trade agreement.
Industry stakeholders argue that without decisive action, local manufacturers may continue to lose market share to producers operating in more competitive business environments.