Industrial Sector’s GDP Contribution in Nigeria Hits Historic Low Amid Tinubu Administration’s Policy Failures

Amid the Tinubu administration’s policy failures, Nigeria’s industrial sector has experienced a historic low in its contribution to the nation’s GDP.

According to data released by the National Bureau of Statistics (NBS), Nigeria’s industrial sector has recorded its lowest contribution to the nation’s Gross Domestic Product (GDP) in 12 years under President Bola Tinubu’s administration.

The sector, which comprises industries such as manufacturing, construction, and mining, witnessed a significant decline.

Recent data analysis reveals that the industrial sector’s contribution to the nation’s GDP has decreased from 19.02% in 2022 to 18.65% in 2023. This drop marks the most significant decline since 2012, as indicated by National Bureau of Statistics (NBS) records.

In 2021, the sector contributed 20.56% to the GDP, which has now fallen to 18.65% in 2023, marking the most significant decrease since 2012.

This downturn comes amid growing concerns about Nigeria’s business environment, as companies are increasingly exiting the country due to high operating costs and an unsustainable business climate.

The decline in the industrial sector’s GDP contribution may be attributed to Nigeria’s ongoing dollar-to-naira crisis and the sharp increase in petroleum prices under the Tinubu administration. These factors have escalated production and sales costs for numerous businesses, resulting in higher cost-to-revenue ratios. Consequently, the profitability and sustainability of these businesses have been adversely affected, leading to concerns about the overall health of the industrial sector and the broader economy.

It is also important to note that the trend in the industrial sector’s GDP contribution raises questions about Nigeria’s long-term economic growth prospects, emphasizing the need for policymakers to address the challenges faced by the sector and implement effective strategies to promote growth and ensure economic stability for the nation and its citizens.

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