Nigeria has announced a target to double its manufacturing output to 20 percent of its Gross Domestic Product, GDP within six years and will set up production hubs across the country in partnership with regional aid banks.
The Ministry of Industry, Trade and Investment said in a statement that the project mine’s strategic objectives are to increase the manufacturing sector’s contribution to GDP to 20 percent … And generate over $30 billion annually by 2025.
The government has set up a Nigeria Special Economic Zone, SEZ Investment Company, which will finance industrial parks in special economic zones in the commercial capital of Lagos, South-eastern state of Abia and northern state of Katsina.
The ministry said 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, AfDB, Afrexim Bank, 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.
Nigeria is Africa’s biggest economy but it lacks a strong manufacturing base, which contributes less than 10 percent to its total GDP.
The country has maintained a strong currency to ensure it can keep imports pouring in, with a growing proportion coming from China.