A new report has found that Nigeria is not prepared for large-scale industrial expansion, pointing to deep structural weaknesses and ongoing security challenges across the country.
The findings suggest that despite calls from policymakers and investors for Nigeria to industrialise rapidly, the country's current state of readiness falls short of what such an ambitious economic shift would require. The report does not name a specific author or organisation, but its conclusions centre on two critical barriers: the physical and institutional infrastructure needed to support factories and manufacturing, and the security environment that investors would need to feel confident enough to commit capital.
Structural weaknesses remain the first major obstacle. Nigeria's power supply remains erratic in most regions, with many businesses still relying on diesel generators to run operations. Roads connecting industrial hubs to ports are poorly maintained, making the movement of goods expensive and unreliable. The country's ports themselves operate below international efficiency standards, adding days and costs to import and export cycles. Water supply, waste management systems, and digital infrastructure in potential industrial zones all lag behind what modern manufacturing demands.
Security instability compounds these challenges. Kidnapping, banditry, and insurgency in the north have made investment there risky. Even in the southwest and southeast, where industrial activity is more concentrated, armed robbery and pipeline vandalism create unpredictable costs for businesses. Foreign investors, in particular, remain wary of committing long-term capital in environments where safety cannot be guaranteed.
The report's timing coincides with renewed government talk of boosting local manufacturing to reduce import dependence and create jobs. Officials have repeatedly said Nigeria must move away from an economy built on oil and consumption toward one driven by production. Yet the gap between ambition and current capacity remains wide. Without reliable electricity, functioning logistics networks, and secure operating conditions, factories will struggle to compete with manufacturers in neighbouring countries or abroad.
Experts suggest the government must prioritise fixing these fundamentals before expecting a manufacturing boom. This means sustained investment in power generation and distribution, roads, and ports, alongside serious security operations in troubled regions. Until those pieces are in place, large-scale industrial investment will likely remain limited to a handful of well-connected operators in the most stable areas.
