Nigeria may lose its position in the African market if it fails to address the steep costs of energy, financing, and logistics that stifle local production. Kamar Bakrin, Executive Secretary of the National Sugar Development Council, highlighted these concerns at the 17th National Council on Industry, Trade and Investment in Enugu.
Bakrin emphasized the urgency of the situation under the African Continental Free Trade Area, noting that Nigeria must choose between becoming a competitive exporter or seeing its domestic market overtaken by foreign goods. The disparity in electricity costs is a primary concern; while Vietnam and China offer significantly lower rates, Nigerian manufacturers often pay double or triple that amount by relying on diesel generators. Last year alone, firms spent approximately N1.34 trillion on self-generated power.
High interest rates, ranging from 27 to 35 percent, further burden the sector compared to single-digit rates in competitive economies like China and Vietnam. To rectify this, Bakrin proposed establishing state-specific industrial clusters, harmonizing taxes, and eliminating transport bottlenecks. He specifically recommended lowering power costs to 10 cents per kilowatt-hour, providing cheaper credit, and accelerating port clearing times. Using the successful growth of the local urea industry as a model, he asserted that favorable input costs are essential for industrial survival.
