The National Sugar Development Council (NSDC) has urged Nigeria to cut production costs or risk losing the African market to more competitive economies under the African Continental Free Trade Area (AfCFTA).

The Executive Secretary of NSDC, Kamar Bakrin, made the call in a statement on Sunday in Abuja.

Mr Bakrin spoke while presenting a paper at the technical session of the 17th National Council on Industry, Trade and Investment (NCITI). 

He said Nigeria faced a defining choice: compete for Africa’s 1.4 billion consumers or concede the market to countries with lower production costs. 

He identified high electricity tariffs, expensive credit and poor logistics as major factors eroding the competitiveness of Nigerian manufacturers. 

He said Nigerian factories paid between 15 cents and 30 cents per kilowatt-hour, compared with eight cents in Vietnam and 10 cents in China. 

According to him, manufacturers spent about N1.34 trillion generating electricity last year due to unreliable public power supply. 

“Every factory in Nigeria is running a second, unwanted business as a private power station,” he said.

 Mr Bakrin said manufacturers also borrowed at interest rates between 27 per cent and 35 per cent, compared with nine per cent in Vietnam and three per cent in China. 

He said that the country ranked 88th out of 139 countries on the World Bank Logistics Performance Index, trailing key manufacturing competitors. 

He said manufacturing contributed only eight per cent to Nigeria’s gross domestic product (GDP), while capacity utilisation declined to 57.7 per cent.

 “None of this is a demand problem. We have a cost-of-production problem, and costs are within our power to fix,” he said. 

Mr Bakrin said recent macroeconomic reforms had improved stability, with inflation easing and foreign reserves reaching $51 billion. 

He, however, warned that global manufacturers relocating supply chains would not wait indefinitely for Nigeria to improve its competitiveness.

“Either our goods are crossing borders going out, or everyone else’s goods are crossing ours coming in,” he said.

Mr Bakrin cited Nigeria’s urea industry as proof that deliberate industrial policies could transform manufacturing and expand exports.

He said urea production rose from 500,000 tonnes in 2005 to 6.5 million tonnes after the government adopted supportive gas pricing.

“When a country prices inputs as if it wants industry to live, industry lives,” he said.

 He proposed reducing industrial electricity costs to between eight cents and 10 cents per kilowatt-hour.

 He also recommended single-digit lending rates, port clearance below seven days and doubling worker productivity by 2030.

 The NSDC boss urged every state to establish at least one industrial cluster with dedicated electricity within 12 months.

He proposed harmonising levies, introducing a State Industrial Competitiveness Index and enforcing Nigeria First procurement across governments.

Mr Bakrin said tax incentives, subsidised power and other government support should remain tied to measurable and independently verified performance.

He urged states to improve electricity markets, secure industrial land, simplify levies and align technical education with industrial needs.

According to him, stronger manufacturing will create jobs, reduce imports, strengthen the Naira and discourage youth emigration.

“The industrial half of Nigeria’s story will be written in kilowatt-hours, lending rates and port days. The window is open. No window stays open forever,” he said.

 (NAN)