A trade expert and Treasurer of the Oyo State Shippers Association, Aminat Animashaun, has identified high interest rates on loans and poor infrastructure as major obstacles preventing Nigerian-made goods from competing globally.
Speaking in Ibadan, Animashaun said entrepreneurs seeking to export locally produced goods are struggling with expensive credit facilities. She urged the government to introduce single-digit interest-rate loans to support local manufacturers and enhance export competitiveness.
“If the government can reduce the high interest rates, it will lower the overall cost of locally made goods. This will make Nigerian products competitive in terms of pricing while maintaining or even exceeding their quality,” she said.
Beyond financial constraints, Animashaun, who is also the CEO of De’rayo Vocational Limited, pointed to unreliable electricity, poor road networks, and high logistics costs as additional barriers to export growth. She called for greater investment in infrastructure and lower trade certification and logistics fees to support exporters.
To expand Nigeria’s global trade presence, she proposed the establishment of trade houses in various countries to attract foreign buyers. “By addressing these challenges, the government can create a more conducive environment for exporters, enabling us to compete globally and contribute to Nigeria’s economic growth,” she added.
Nigeria’s manufacturing sector continues to lag behind, contributing minimally to exports and GDP. While the gross value of manufactured exports rose by 66% from N778.44 billion in 2023 to N2.28 trillion in 2024, experts argue that the figure remains inadequate.
In Q4 2024, the sector’s contribution to Nigeria’s real GDP fell to 8.07% from 8.23% in Q4 2023, despite a slight improvement in real GDP growth from 1.38% to 1.79%. The Manufacturers Association of Nigeria notes that growth remains concentrated in a few sub-sectors, while economic instability and currency volatility continue to erode profit margins and export revenues.
Amid concerns over the sector’s weak performance, the Lagos Chamber of Commerce and Industry (LCCI) has urged the federal government to implement a comprehensive industrialization strategy to strengthen local manufacturing. LCCI’s Director General, Chinyere Almona, stressed the need for urgent reforms to boost production capacity.
Similarly, the African Export-Import Bank (Afreximbank) has called on Nigeria and other African nations to prioritize investments in manufacturing and infrastructure to unlock the continent’s economic potential.
