Nigeria Plans To Double Manufacturing By 2025 With Special Economic Zones

Avatar
Written by Peter Pedroncelli

Nigeria, which has the largest economy in Africa, wants to double its manufacturing to 20 percent of gross domestic product and generate more than $30 billion annually within the next six years.

The West African country has identified manufacturing as having great growth potential. It contributes less than 10 percent to the country’s total GDP, according to Reuters.

Listen to GHOGH with Jamarlin Martin | Episode 2: Rodney Williams

Jamarlin talks to Rodney Williams, founder and CEO of Lisnr, about raising $10 million in venture capital, HBCU endowments that invest in black tech, and how to fire loyal employees you like.

The government initiative is called Project Made in Nigeria for Export.

Nigerian manufacturing is dominated by food, beverages and tobacco, according to HowWeMadeItInAfrica. Sugar and bread products generate the greatest value of output.

Special economic zones to boost manufacturing

Establishing special economic zones will be an important part of the project to increase manufacturing output.

These will be in the commercial capital of Lagos, southeastern state of Abia and northern state of Katsina, according to Gulftoday.

special economic zones
Nigeria is aiming to double manufacturing’s contribution to GDP by 2025. AP Photo – Sunday Alamba

The government is in the process of raising $250 million in capital for the Nigeria SEZ Investment Company, which will finance industrial parks in the economic zones, the SABC reports.

The state plans to double its equity to $500 million over four years.

Regional aid banks and lenders have shown interest in investing in the project alongside the Nigerian government, which would own a 25 percent stake, according to Reuters.

Potential lenders include the African Development Bank, Afreximbank, African Finance Corporation and Nigerian Sovereign Investment Authority.

Two unnamed Chinese groups are also being considered as investors after showing interest, the Nigerian industry, trade and investment ministry said in a statement.