Industry & Mining
From The Report: Nigeria 2017
View in Online Reader

Comprising major food and consumer staples producers, Africa’s largest cement manufacturers, and a handful of heavy industries and light manufacturing, Nigeria has a diversified industrial sector. According to data from the Nigerian Investment Promotion Commission (NIPC), the country is home to the largest manufacturing sector on the continent and, along with Egypt, South Africa and Morocco, it accounts for two-thirds of the continent’s manufacturing in nominal US dollar terms. Given the potential of the industrial sector for both employment and revenues, the government is hoping to stoke further growth. The potential Nigeria offers as an industrial producer is not in any doubt, and the long-term advantages are sizeable, but so too are the challenges. As a result, the stabilisation of the macroeconomic situation offers some short-term hope. The long-term promise, however, is significant given the country’s vast array of inputs, such as natural gas, metals and agricultural commodities, as well as a domestic market of 189m people and duty-free access to another 120m consumers within ECOWAS.

This chapter contains interviews with Okechukwu E Enelamah, Minister of Industry, Trade and Investment; and Kayode Fayemi, Minister of Solid Minerals Development; and a roundtable interview with Chidi Okoro, Managing Director, UAC Foods; Theo Williams, Country Manager, AJE; and George Plymenakos, Managing Director, Nigerian Bottling Company (NBC).

Articles from this Chapter

Overview

Back on track: Effective government responses to recent economic troubles mean the sector is ready for investment and growth
OBG
plus

Comprising major food and consumer staples producers, Africa’s largest cement manufacturers, and a handful of heavy industries and light manufacturing, Nigeria has a diversified industrial sector. According to data from the Nigerian Investment Promotion Commission (NIPC), the country is home to the largest manufacturing sector on the continent and, along with Egypt, South Africa and Morocco, it accounts for two-thirds of the continent’s manufacturing in nominal US dollar terms. Given…

Analysis

Healthy prospects: Pharmaceuticals production looks to meet domestic demand
OBG
plus

With a variety of both local and foreign firms, Nigeria’s pharmaceutical market comprised more than 130 active companies in 2017, including global giants such as GlaxoSmithKline and Procter & Gamble, as well as smaller domestic start-ups. Although there is a heavy presence of drugs producers, the country still faces a significant shortfall in terms of domestic supply, which meets just 45% of demand. With the rollout of wider health care coverage by both federal and state governments…

Interview

Steady improvements: Okechukwu E Enelamah, Minister of Industry, Trade and Investment, on creating an ideal business environment
OBG
plus

Interview: Okechukwu E Enelamah What obstacles do manufacturers face in Nigeria? OKECHUKWU E ENELAMAH: The biggest challenge is definitely infrastructure, in one form or another. In addition, manufacturers need more access to sustainable, affordable and reliable power – that’s our first priority as a government and as a ministry. Most manufacturers determine what they buy in Nigeria and what they buy abroad, so we need to integrate the country in the global value chain. Clearly there is an…

Analysis

The fabric of society: Textiles look to make a comeback thanks to an abundance of raw materials
OBG
plus

Nigeria once had a thriving textiles industry, but as with so many of its peers across the continent, the sector has suffered under intense competition following the end of the Multi-Fibre Arrangement (MFA), which set rules for the international trade of textiles and garments until 2004. Given the role the MFA played in relation to employment, the development of a local supply chain and the fulfilment of the government’s import substitution policies, revitalising the sector is a priority. The…

Overview

Satisfying the market: Chidi Okoro, Managing Director, UAC Foods; Theo Williams, Country Manager, AJEAST Nigeria; and George Polymenakos, Managing Director, NBC, on consumer goods
OBG
plus

Interview:CHIDI OKORO, THEO WILLIAMS AND GEORGE POLYMENAKOS What is the biggest bottleneck facing fast-moving consumer goods (FMCG) production in Nigeria? CHIDI OKORO: The biggest by far is access to shoppers. With a fragmented traditional trading channel structure, the cost of reaching retail outlets is high. This is exacerbated by the inadequate transportation system across roads and rivers. There is also the issue of electric power availability for controlled temperatures in transit, which…

Overview

Uncovering potential: A new roadmap aims to help the industry capitalise on its substantial and diversified reserves
OBG
plus

Mining is big business in Africa and a cornerstone of many national economies. It accounts for a quarter of GDP in the Democratic Republic of the Congo, and in Botswana the figure has been as high as 40%. Yet despite the huge potential for deposits of precious metals, base metals, coal and iron ore, the Nigerian mining sector contributed only 0.3% to GDP in 2015. Over the last 10 years, attempts to boost private investment in exploration and mining through regulatory changes have fallen flat,…

Interview

Informed decisions: Kayode Fayemi, Minister of Solid Minerals Development, on the way forward for the sector
OBG
plus

Interview: KAYODE FAYEMI What is Nigeria doing to improve the investment attractiveness of its mining sector? KAYODE FAYEMI: We are enhancing activities as outlined in the road map in terms of regulatory certainty, incentives for investment, infrastructural development and geological data generation, while reorganising and formalising small-scale mining. We are also solving legacy litigation around assets like steel and aluminium plants. The government has increased funding to the sector, and…