The Manufacturers Association of Nigeria (MAN) has called on the Federal Government to place manufacturing and industrial development at the heart of its economic agenda, warning that the latest rebased Gross Domestic Product (GDP) figures, while appearing positive, do not reflect the true health of the economy.
Speaking in Lagos on Tuesday, MAN Director General, Mr. Segun Ajayi-Kadri, said the country’s 3.13 percent GDP growth in the first quarter of 2025—up from 2.27 percent during the same period in 2024—shows potential for recovery but must be viewed in context.
He explained that the apparent expansion in GDP was largely due to enhanced data collection, particularly in agriculture, services, and the informal economy, rather than a genuine improvement in industrial productivity.
Ajayi-Kadri warned against mistaking this statistical growth for substantial economic development, noting that real GDP growth remained weak over the last four years, averaging just 1.95 percent.
“This reveals the deep-rooted vulnerability of Nigeria’s production structure and the limited capacity of the economy to support long-term, inclusive growth,” he stated.
He lamented that the contribution of the industrial sector to GDP dropped significantly—from 27.65 percent in the 2010 base year to just 21.08 percent under the updated 2019 GDP base—indicating a shift away from productive sectors towards low-output service-based activities.
“The rebasing confirms that Nigeria’s economy may be statistically larger, but it is not more productive, nor more industrialised,” he said.
Ajayi-Kadri added that while the rebased data does reflect greater sectoral diversity, it also highlights the lagging performance of the industrial and manufacturing sectors, which he described as critical to any meaningful economic transformation.
He urged the government to treat the revised GDP figures not as a cause for celebration, but as a wake-up call for urgent industrial policy reforms. He argued that re-industrialising Nigeria is essential for creating inclusive prosperity, strengthening export potential, and weaning the country off overreliance on primary commodities and informal trade.
He called for deliberate support for manufacturing through favorable policies, access to affordable finance, and significant investment in infrastructure.
“Without a strong industrial base, GDP expansion may just become a hollow statistic,” he warned.
Ajayi-Kadri acknowledged that the GDP adjustment to $243 billion might enhance investor sentiment and improve debt-to-GDP ratios. However, he maintained that genuine economic confidence stems from structural strength, industrial capacity, and productivity improvements.
“In this regard, we need to refocus on the development of the real and high-impact driven sector,” he said.
The MAN boss called for the consolidation of industry-led initiatives, including the work of the Industrial Revolution Working Group, and emphasized the importance of long-term financing to support manufacturing growth.
He maintained that a robust industrial sector is essential for meaningful poverty reduction, job creation, and economic stability.
“This must include sector-specific interventions such as energy reliability for manufacturers, incentivised local content policies, streamlined regulatory frameworks, and strategic trade facilitation to boost competitiveness,” he said.
Ajayi-Kadri concluded by urging the government to implement targeted policies to revive key industries, especially struggling sub-sectors like textiles and vehicle assembly.
