LAGOS, Nigeria – British American Tobacco Nigeria (BATN) has called for urgent improvements in the implementation of industrial policies to address the structural challenges hindering the growth of Nigeria’s manufacturing sector.
The company stressed that Nigeria’s industrial slowdown is not due to a lack of policy frameworks, but rather weak execution and poor coordination among government institutions.
Policy Execution Identified as Key Challenge
Speaking at the BusinessDay Manufacturing Conference 2026 in Lagos, BAT Nigeria’s Director of Corporate and Regulatory Affairs, Ruth Owojaiye, said the country already has multiple industrial policies in place, including the recently introduced Nigeria Industrial Policy.
However, she noted that the key issue remains translating these policies into measurable outcomes that support investment, productivity and long-term industrial growth.
According to her, inconsistent implementation continues to limit investor confidence and slows the pace of manufacturing expansion in the country.
Power Supply Remains Major Constraint
A major concern highlighted by BAT Nigeria is Nigeria’s persistent electricity deficit, which continues to drive up production costs and reduce industrial competitiveness.
The country currently generates an estimated 4,000 to 5,000 megawatts of electricity, far below the estimated 100,000 megawatts required to fully support its economic potential.
Manufacturers have increasingly resorted to self-generation of power through alternative energy sources, significantly raising operating costs and reducing margins, particularly for small and medium-sized enterprises.
BAT Nigeria itself has invested in alternative energy solutions, including a 1.4-megawatt solar power installation and a transition to Compressed Natural Gas (CNG)-powered operations.
Regulatory Bottlenecks Slowing Industry Growth
The company also pointed to overlapping regulations, fragmented oversight and policy inconsistencies as major barriers to manufacturing growth.
Industry stakeholders say businesses often face multiple compliance requirements from different government agencies, leading to duplication, higher costs and uncertainty.
BAT Nigeria emphasised the need for stronger inter-agency coordination to ensure that regulations support industrial development rather than hinder it.
Call for Stable Business Environment
The company further highlighted the importance of maintaining a stable regulatory environment, predictable foreign exchange policies and consistent enforcement of industrial frameworks to attract long-term investment.
It also urged the government to accelerate the settlement of export expansion grant obligations, proposing phased payments and redeemable promissory notes to improve liquidity for exporters.
Such measures, it argued, would strengthen Nigeria’s manufacturing base and enhance participation in regional and global trade.
Manufacturing Key to Economic Growth
BAT Nigeria reaffirmed that export-led industrialisation remains one of the most effective strategies for sustainable economic growth.
The company noted that strengthening manufacturing would create jobs, boost foreign exchange earnings and improve Nigeria’s competitiveness in global markets.
Despite ongoing challenges, Nigeria retains strong fundamentals, including a large domestic market, a youthful workforce and significant entrepreneurial capacity.
Outlook for Nigeria’s Industrial Sector
Analysts believe that improving policy execution, strengthening infrastructure and ensuring regulatory coherence will be critical to unlocking Nigeria’s manufacturing potential.
As Africa’s largest economy continues to pursue industrialisation goals, stakeholders argue that bridging the gap between policy design and implementation will determine the sector’s future trajectory.