Energy Policy as Ultimate Driver of Competitive Manufacturing
Following the launch of Nigeria Industrial Policy February this year, a former Director General of UNIDO, has made a case for an energy policy if Nigeria is to achieve its
Dr. Kandeh Kolleh Yamkella, former Director General of UNIDO, addressed the Manufacturers Association of Nigeria (MAN) at the 6th Adeola Odutola Lecture on October 6, 2026. The lecture, held during MAN's 54th Annual General Meeting, focused on "Leveraging National Industrial Policy to Position Nigeria as Africa's Industrial Hub".
Yamkella emphasized the critical need for a proper energy policy as part of an effective industrial policy in Nigeria. He highlighted that energy costs, which can range from 30 to 60 percent of manufacturers' production costs, are hindering industrial growth in the country. In contrast, countries like India, Vietnam, Indonesia, Turkey, Mexico, and South Africa subsidize energy costs for their manufacturers.
He stressed that industrial policy alone does not lead to industrialization; it must translate into productive capacity, investment, technology, competitiveness, value addition, and job creation. Yamkella urged the government to take practical, deliberate measures in implementing industrial policy, rather than merely producing policy documents.
He pointed out that while Nigeria has the potential foundations for an industrial powerhouse, the current manufacturing contributions to GDP and exports are unimpressive. Yamkella argued that Nigeria's economic paradox lies in its large market and abundant resources, yet the country continues to import most of its consumption.
The former UNIDO chief suggested that the government should ensure its newly launched industrial policy translates into industrial action, focusing on monitoring key parameters such as new factory establishments, factory expansions, domestic value creation, and investment mobilization. Yamkella urged Nigerian governments to actively measure and support MAN and manufacturers in growing their industries, moving beyond mere paper policies to actual, productive outcomes.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
