Nigeria's Manufacturing Goal for 2030 Needs Local Engineering Support

Nigeria wants to increase manufacturing's share of the economy, but it needs to build more local engineering capacity. Industry leaders made this clear at the Manufacturers Association of Nigeria's 54th Annual General Meeting in Lagos last week. The Federal Government aims to raise manufacturing's contribution to GDP to between 20 and 25 percent by 2030. However, the sector's share dropped from 8.42 percent in 2023 to 8.05 percent in 2025.

Dorman Long Engineering Limited has been fabricating industrial structures and equipment in Nigeria since 1949. They say that achieving this target relies on having enough fabrication yards in addition to factories.

Chris Ijeli, Managing Director and CEO of Dorman Long Engineering, said, "We have had local content targets in this country for over two decades, and they work best where there is real capacity on the ground to meet them. If we want manufacturing at 25 percent of GDP, we need to invest in building the engineering base first, not after."

A report called the Nigerian Manufacturing Opportunity Report 2026 was launched at the AGM. Published by market intelligence firm SEID, it shows that there are over ₦40 trillion in untapped manufacturing opportunities. In 2025, imports met 64 percent of local demand for manufactured goods. This created a $29.4 billion market that domestic producers missed out on.

The problem goes beyond finished goods. Data from the National Bureau of Statistics shows that raw material imports reached ₦3.53 trillion in the first half of 2025. This is a 19.7 percent increase from the previous year. SEID’s report links this shortfall to weak value chains. It calls for better energy, logistics, infrastructure, and technical skills to help local producers compete.

Factories depend on steel structures, process equipment, storage tanks, and corrosion-protected components. Most of these items are still imported. Local engineering firms that can supply these materials can help shorten project timelines and reduce the risk of foreign exchange fluctuations.

Dorman Long operates three facilities in Lagos: a fabrication yard at Idi-Oro, a hot-dip galvanizing plant at Agege, and a waterfront yard at the Nigerian Naval Dockyard for heavy assembly moved by sea. The company says the Agege plant is the only large-scale, engineering-quality galvanizing facility in Nigeria. Galvanizing protects steel from corrosion. It is used for transmission towers, telecom masts, and energy infrastructure.

Ijeli mentioned, "The Madu platform is a good example. It was fabricated completely by Nigerians at our Naval Dockyard yard in Lagos and loaded out by sea for First E&P and NNPC’s joint venture. Work like that has often gone overseas. When it is done here, the jobs, the skills and the spend stay in Nigeria."

The Manufacturers Association of Nigeria has made implementing the Nigeria Industrial Policy its main focus. Members say that high energy costs, expensive credit, foreign exchange risks, and logistics problems are the main barriers to growth. Francis Meshioye, President of the Manufacturers Association of Nigeria, mentioned in a media briefing that Nigeria can become Africa's industrial hub only if it moves from making policy to actually putting it into action.

He added that the growth of the sector cannot rely solely on the resilience of manufacturers. Ijeli stated, "Engineering firms are ready to grow with the sector, but three things would make the biggest difference: long-term finance for equipment at rates manufacturers can carry, consistent enforcement of local content rules, and serious investment in technical skills. Skills are where we have chosen to act. Through our partnership with the Nigerian Society of Engineers, young engineers gain hands-on industry experience, and we have recognised the best graduating engineering students at Afe Babalola University for several years. The 2030 target is reachable if capacity is built alongside policy."

With the 2030 deadline just four years away, how much of the ₦40 trillion opportunity Nigeria captures may depend more on the existing yards, plants, and engineers than on new policies.