Nigeria plans to more than double the contribution of manufacturing to its economy in the next three years through policy stimulus and investments, Trade and Investment Minister Olusegun Aganga said.
“We will increase manufacturing from an abysmal 4 percent of the gross domestic product to over 10 percent by 2017,” Aganga said today at the Standard Bank West Africa Investors’ Conference in the commercial capital, Lagos. This would add 3.5 trillion naira to the economy and annual revenue of 5 trillion naira to manufacturing, the minister said.
Nigeria, Africa’s second-largest economy, depends on oil exports for about 80 percent of government revenue and more than 95 percent of foreign income. Most of its industrial goods as well as refined petroleum are imported, making the country vulnerable to downward swings in prices of crude.
With about $12 billion of investments planned for the petrochemical industry, “the expectation is that by 2017 our country will no longer need to import petroleum products.”
A new policy that comes into effect at the end of February will double duties on imported vehicles to encourage local production. Nissan Motor Co. will start producing cars in Nigeria in April and talks are in progress with Japan’s Toyota Motor Corp., Seoul-based Hyundai Motor Corp., India’s Tata Motors Ltd. and German automaker Volkswagen AG to follow suit, he said.
“This is what policy can do,” he said. “We want to move from a country that sells raw materials to a country that sells processed and finished goods.”