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China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
Image from How We Made it in Africa
According to the National Bureau of Statistics (NBS), Nigeria's manufacturing sector is dominated by food, beverage and tobacco production, with the largest production of sugar and bread.
Most recently, the Central Bank of Nigeria (CBN) announced plans to facilitate the issuance of single-digit interest rate loans to firms operating in the agriculture and manufacturing sectors. Port reforms and other ease of doing business initiatives by the government are also helping to make the manufacture of goods easier in the country; relatively, at least. Owing to reforms, Nigeria's ease of doing business ranking moved to 145th place in 2017 from 169th in 2016, for instance.
The Nigerian manufacturing sector has been performing well in recent years. While year-on-year growth for each of the quarters in 2015-16 was negative, there was only one such instance in 2017; in the third quarter. Incentives by the government are also beginning to encourage greater interest. According to official data, at 9.3% of GDP, the Nigerian manufacturing sector grew by 3.4% year-on-year in the first quarter of 2018, an improvement from 0.1% y/y in Q4 2017 and -2.9% y/y in Q3 2017.
The government's industrialisation focus is on small and medium scale enterprises and is one of the five key execution priorities of its four-year Economic Recovery and Growth Plan (ERGP).
Nigeria: Manufactures in import prohibition list
Refined vegetable oils and fats
Cocoa butter, powder and cakes
Spaghetti/Noodles
Fruit juice in retail packs
Waters, mineral waters, aerated waters
Bagged cement
Medicaments (e.g. Paracetamol, Multivitamins, etc)
Waste pharmaceuticals
Soaps and detergents
Mosquito repellant coils
Rethreaded and used pneumatic tyres
Corrugated paper and paper boards
Telephone recharge cards and vouchers
Carpets and other textile floor coverings
All types of footwears, bags and suitcases
Hollow glass bottles of a capacity exceeding 150mls
Ball point pens and parts including refills
Tomato paste or concentrate
Source: Nigeria Customs Service
According to Nairametrics, a business intelligence firm, five local vegetable oil brands currently dominate the Nigerian market due to the government's import ban. They are Sunola Oil, Grand Oil, Power Oil, Mamador and Devon King's.
