Former Director‑General of the [United Nations Industrial Development Organisation](https://www.unido.org), Dr Kandeh Yumkella, asserted in Lagos that Nigeria has the fundamental ingredients to become Africa’s leading industrial power, provided it converts its vast market, natural resources and entrepreneurial vigor into competitive production and export performance.
Yumkella highlighted Nigeria’s deep financial markets, its strategic location within the Economic Community of West African States and the [African Continental Free Trade Area](https://en.wikipedia.org/wiki/African_Continental_Free_Trade_Area), and the presence of 41 million micro, small and medium enterprises as key strengths. He warned, however, that the nation’s industrial output remains far below its potential, with manufacturing accounting for only about 7‑8 % of gross domestic product (GDP) and manufactured goods contributing roughly 3 % of total export earnings.
**What did the lecture emphasize?**
Speaking at the 6th Adeola Odutola lecture organised by the [Manufacturers Association of Nigeria](https://www.man.org.ng), Yumkella said, “Countries industrialise when policy translates into productive capacity, investment, technology, competitiveness and value addition to create jobs.” He stressed that Nigeria’s export of goods and services represents just 10.7 % of GDP, underscoring the urgency of boosting domestic production and accessing wider international markets.
**Which challenges hinder industrial growth?**
The former UNIDO chief identified unreliable electricity as a primary obstacle. The national grid supplies only about 5,000‑6,000 megawatts against an estimated demand exceeding 20,000 megawatts. Manufacturers reportedly spent N1.34 trillion on self‑generated power in 2025, up from N781.68 billion in 2023, with energy costs making up 35‑40 % of total production expenses.
**What solutions were proposed?**
Yumkella urged the government to tap Nigeria’s abundant natural gas, hydropower and solar potential to deliver stable, affordable electricity for factories, and to promote a regional energy market across West Africa. He concluded that while the private sector’s resilience is evident, “potential is not performance.”