Funmi Ogundare
BAT Nigeria (BATN) has identified poor implementation of industrial policies as the biggest obstacle to the growth of Nigeria’s manufacturing sector, urging government and industry stakeholders to focus on translating policy commitments into tangible outcomes that drive investment, productivity and economic growth.
Speaking at the BusinessDay Manufacturing Conference 2026 in Lagos, which brought together policymakers, investors, industry leaders and development partners, Director of Corporate and Regulatory Affairs at BAT Nigeria, Ruth Owojaiye, explained that the country’s manufacturing challenges stem not from a lack of policies but from weak execution of existing frameworks designed to support industrialisation.
Addressing participants during a panel session titled ‘Fixing the Structural Barriers Holding Nigerian Manufacturing Back’, Owojaiye noted that Nigeria has developed several policies aimed at promoting manufacturing and economic growth, including the recently launched Nigeria Industrial Policy.
“The challenge facing Nigeria today is not policy formulation; it is policy execution. We have numerous frameworks designed to support manufacturing, investment and industrial growth. The real question is how quickly and effectively we can translate these policies into tangible outcomes for businesses, investors and the wider economy,” she said.
She identified inadequate power supply as one of the most significant barriers to industrial productivity, stressing that unreliable electricity continues to increase operating costs and reduce the competitiveness of local manufacturers.
According to her, Nigeria requires an estimated 100,000 megawatts of electricity to effectively power its economy but currently generates only about 4,000 to 5,000 megawatts.
“Nigeria’s manufacturing ambitions cannot be realised without addressing the energy challenge. Businesses are increasingly forced to generate their own power to sustain operations. While some large organisations can make substantial investments in alternative energy solutions, many manufacturers, particularly small and medium-sized enterprises, simply do not have that capacity,” she said.
Drawing from BAT Nigeria’s experience, Owojaiye said the company had invested in alternative energy solutions, including a transition to 100 per cent Compressed Natural Gas (CNG) operations and the deployment of a 1.4-megawatt solar power system to strengthen operational resilience.
However, she noted that many manufacturers lack the financial capacity to make similar investments, stressing the need for broader reforms that will improve access to affordable and reliable energy.
Beyond energy concerns, Owojaiye emphasised the regulatory bottlenecks, including overlapping regulations, fragmented oversight and policy inconsistencies, which she said continue to increase compliance costs and create uncertainty for businesses.
She explained that poor coordination among government agencies often results in duplicated requirements that place additional burdens on manufacturers despite the positive intentions behind many regulations.
“Government agencies may pursue legitimate policy objectives independently, but without sufficient coordination, the cumulative impact can create unintended consequences for businesses. Effective stakeholder engagement and inter-agency collaboration are essential to ensuring that regulations achieve their intended goals without undermining industrial growth,” she stated.
The BAT executive also stressed the importance of maintaining a predictable regulatory environment, ensuring foreign exchange stability and enforcing policies consistently to attract long-term investments.
She further called for the speedy settlement of export expansion grant obligations through phased payments and redeemable promissory notes, arguing that such measures would improve liquidity for exporters and encourage greater participation of Nigerian manufacturers in regional and global markets.
“Export-led industrialisation remains one of the most effective pathways for sustainable economic growth. When manufacturers are supported to compete in regional and global markets, the benefits extend beyond individual businesses to job creation, foreign exchange generation and broader economic development,” she added.
Owojaiye stated that Nigeria has the talent, market size and entrepreneurial capacity to become a leading manufacturing hub in Africa, but achieving that ambition would require coordinated action by both government and industry to bridge the gap between policy ambition and implementation.
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