FG targets 20% manufacturing contribution to GDP by 2030

The Minister of State for Industry, John Enoh, has said the Federal Government is working to increase the manufacturing sector’s contribution to Nigeria’s economy to 20 per cent by 2030 and 25 per cent by 2035.

Enoh disclosed this during a visit to the 700,000 barrels-per-day Dangote Petroleum Refinery, Dangote Petrochemicals complex and Dangote Fertiliser Limited in Lagos.

He led a delegation that included the Special Assistant to the President on Industrial Training and Manpower, the Director-General of the Industrial Training Fund and the Director-General of the Manufacturers Association of Nigeria (MAN).

The minister also described Aliko Dangote, founder and President/Chief Executive of Dangote Industries Limited, as Nigeria’s foremost industrialist and a key figure in the implementation of the Nigeria Industrial Policy (NIP).

“He is Nigeria’s champion. I mean, it’s even understated when they call him Africa’s wealthiest man,” Enoh said.

He added that Dangote’s participation in the launch of the NIP in February helped to raise the profile of the policy.

According to Enoh, the ministry has already achieved its first 90-day target under the industrial policy, while the government’s plans to increase manufacturing’s contribution to the economy would depend partly on continued investment by major local industrialists such as Dangote.

The minister also confirmed that discussions were continuing with relevant authorities on a naira-for-crude arrangement for the Dangote refinery.

He expressed hope that the discussions would end positively, saying the arrangement could further support the refinery’s operations and Nigeria’s industrial development.

Enoh said the visit would lead to closer cooperation between the government and Dangote Industries in three major areas.

These include training and developing workers, supporting the refinery’s next stage of expansion, and developing businesses around the petrochemicals plant.

He said the refinery’s expansion could require about 65,000 additional trained workers, making skills development a major area of collaboration.

The minister also mentioned greater cooperation on free trade zone projects, including the recently commissioned project in Ondo State.

Enoh expressed satisfaction with the high level of automation at the refinery, noting that technology had reduced the number of people required to operate the facility, with human presence largely limited to security and other essential functions.

Responding, Dangote commended President Bola Tinubu for appointing Enoh to oversee the industry portfolio, describing the minister’s commitment to the sector as exceptional.

“I must also thank His Excellency, Mr President, for appointing people like Senator Enoh. We’ve had a lot of ministers of industry, but the commitment that we have from him, I can tell you, is none compared to the rest. His commitment is absolute,” Dangote said.

The industrialist also backed Tinubu’s plan to grow Nigeria into a $1 trillion economy, saying his business group had set its own target of generating $100 billion by 2030.

“The vision of Mr President Bola Ahmed Tinubu, a $1 trillion economy, I think is more than achievable. That’s why we took out from that vision of $1 trillion to carve our own vision, we have seen that, yes, we can do $100 billion out of that $1 trillion,” he said.

Dangote said the refinery had reached a scale that was significant not only for Nigeria but also for the global oil market.

He said the refinery’s capacity was equivalent to about 10 per cent of America’s total refining capacity and that it accounted for about 2.5 per cent of crude traded globally.

He linked the growth of local industries to the stability of the naira, predicting that continued industrial expansion could help bring the exchange rate to about N1,000 to the dollar by the middle of 2028.

Dangote recalled that the refinery was conceived when the naira traded at about N156 to the dollar and was completed despite several rounds of currency devaluation.

He also appealed to the Federal Government to help the Bank of Industry provide cheaper loans to manufacturers.

Dangote recalled that he once borrowed money at an interest rate of 44 per cent to build the Obajana cement plant in Kogi State, stressing that high borrowing costs remain a major obstacle to industrial growth.

He disclosed that Dangote Cement paid about N1 trillion in taxes last financial year and projected that the figure could rise to N1.5 trillion this year based on its half-year performance.

He also put combined investment in the group’s petrochemical and fertiliser businesses at nearly $9 billion.

Dangote urged the government to focus more on maintaining stable policies rather than introducing additional tax incentives, arguing that local manufacturers needed consistency and stronger engagement with government more than new tax breaks.

He said greater support for existing Nigerian investors would also help attract foreign investors into the country.

The Dangote refinery, petrochemicals complex and fertiliser plant form the major part of Dangote Group’s expansion beyond cement and sugar and are central to the Federal Government’s drive to increase local production, reduce imports and strengthen Nigeria’s industrial base.