Nigeria’s push to triple manufacturing’s share of the economy will stall unless the country builds more of the engineering capacity factories depend on, industry operators have said. At the Manufacturers Association of Nigeria’s 54th Annual General Meeting in Lagos last week, the Federal Government set a target of raising manufacturing’s contribution to GDP to between 20 and 25 per cent by 2030. The sector’s share fell from 8.42 percent in 2023 to 8.05 percent in 2025.
Dorman Long Engineering Limited, which has fabricated industrial structures and equipment in Nigeria since 1949, says the target depends as much on fabrication yards as on factories.
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“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,” said Chris Ijeli, Managing Director/CEO of Dorman Long Engineering.
A market served from abroad
The Nigerian Manufacturing Opportunity Report 2026, published by market intelligence firm SEID and launched at the AGM, puts untapped manufacturing opportunities at more than ₦40 trillion. Imports met 64 percent of local demand for manufactured goods in 2025; a $29.4 billion market domestic producers did not serve.
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The dependence reaches below finished goods. National Bureau of Statistics data shows raw material imports reached ₦3.53 trillion in the first half of 2025, up 19.7 per cent year on year. SEID’s report links the shortfall to weak value chains and calls for stronger energy, logistics, infrastructure and technical skills to help local producers compete.
What sits behind a production line
Factories rely on steel structures, process equipment, storage tanks and corrosion-protected components, much of which is still imported. Engineering firms that can supply these locally shorten project timelines and reduce foreign exchange exposure.
Dorman Long runs 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 describes the Agege plant as the only large-scale, engineering-quality galvanizing facility in Nigeria. Galvanizing protects steel from corrosion and is used on transmission towers, telecom masts and energy infrastructure.
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“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,” said Ijeli.
Policy and capacity
MAN has made implementation of the Nigeria Industrial Policy its priority, with members citing energy costs, expensive credit, foreign exchange exposure and logistics as the main barriers to expansion. Francis Meshioye, President of the Manufacturers Association of Nigeria, said at a media briefing ahead of the association’s 54th AGM that Nigeria can become Africa’s industrial hub only if it moves from drafting policy to disciplined execution. He added that the sector’s growth cannot depend on the resilience of manufacturers alone.
“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,” said Ijeli.
With the 2030 deadline four years away, how much of the ₦40 trillion opportunity Nigeria captures may depend less on new policy than on the yards, plants and engineers already in place to deliver it.
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