Nigeria's Sugar Council Seeks Cheaper Power, Loans to Boost Manufacturing Competitiveness

The National Sugar Development Council (NSDC) in Nigeria is urging immediate reforms to tackle the high cost of production, a critical barrier hindering local manufacturers' ability to compete effectively. Executive Secretary Kamar Bakrin stressed the need for government prioritization of cheaper electricity, single-digit industrial lending rates, and more efficient port operations to level the playing field within the African Continental Free Trade Area (AfCFTA).

Bakrin warned that without addressing these persistent structural challenges, Nigeria risks ceding its potential share of the African market to more competitive economies. He highlighted that the country is at a pivotal moment in its industrialization journey, and the primary obstacle is no longer demand for domestic goods but the prohibitive cost associated with producing them.

"Nigeria must now choose between competing for the African market and conceding it to others," Bakrin declared. He pointed out that Nigerian manufacturers incur costs two to ten times higher than their counterparts in countries like Vietnam and China for essential inputs such as electricity, credit, and logistics. This disparity significantly undermines the competitiveness of locally produced goods.

Illustrating the scale of the problem, Bakrin revealed that Nigerian manufacturers collectively spent an estimated 1.34 trillion naira (approximately $850 million USD) solely on generating their own electricity in the past year. This reliance on self-generated power underscores the inadequacy and unreliability of the national electricity supply, adding a substantial burden to production costs.

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Nigeria must now choose between competing for the African market and conceding it to others.