The Federal Government of Nigeria is contemplating new measures to stimulate the economy and one of such is the setting of a benchmark to double manufacturing output to 20 percent of GDP.
The government plans to achieve its target in six years by establishing production hubs across the country in partnership with regional aid banks among others.
Nigeria, Africa’s biggest economy lacks a strong manufacturing base which contributes less than 10 percent to its total gross domestic product (GDP).
The country has maintained a strong currency to ensure it can keep imports pouring in, with a growing proportion coming from China.
“Project MINE’s (Made in Nigeria for Export) strategic objectives are to increase (the) manufacturing sector’s contribution to GDP to 20 percent … and generate over $30 billion annually by 2025,” the ministry of industry, trade and investment said in a statement.
The government has set up Nigeria SEZ Investment Company, which will finance industrial parks in special economic zones in the commercial capital of Lagos, Abia and Katsina.
The government is currently raising capital of $250 million for Nigeria SEZ Investment Company. It plans to double its equity to $500 million over four years, the ministry said.
Lenders such as African Development Bank, Afreximbank, African Finance Corporation and Nigerian Sovereign Investment Authority have shown interest in co-investing with the Nigerian government, which would own a 25 percent stake. Two Chinese groups have also shown interest, the ministry said.
Reuters
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