Nigeria plans special economic zones to double manufacturing by 2025

LAGOS: Nigeria announced a target to double its manufacturing output to 20 per cent of GDP within six years and will set up production hubs across the country in partnership with regional aid banks.

NigeriaisAfrica’sbiggesteconomy but it lacks a strong manufacturing base, which contributes less than 10 per cent to its total gross domestic product (GDP).

The country has maintained a strong currency to ensure it can keep imports pouring in, with a growing proportion coming from China.

“Project MINE’s (Made in Nigeria for Export) strategic objectives are to increase (the) manufacturing sector’s contribution to GDP to 20 per cent ... and generate over US$30 billion annually by 2025,” the ministry of industry, trade and investment said in a statement.

The government has set up Nigeria SEZ Investment Company, which will finance industrial parks in special economic zones in the commercial capital of Lagos, southeastern state of Abia and northern state of Katsina.

The government is currently raising capital of US$250 million for Nigeria SEZ Investment Company. It plans to double its equity to US$500 million over four years, the ministry said.

Lenders such as African Development Bank, Afreximbank, African Finance Corporation and Nigerian Sovereign Investment Authority have shown interest in co-investing with the Nigerian government, which would own a 25 per cent stake. Two Chinese groups have also shown interest, the ministry said. — Reuters