Nigeria Plans To Double Manufacturing By 2025 With Special Economic Zones
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.
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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.
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.