Yumkalla: Energy Policy Must Be Part of Effective Industrial Policy

Dike Onwuamaeze

A former Director General of the United Nations Industrial Development Organisation (UNIDO), Dr. Kandeh Kolleh Yumkalla, has called on the federal government to produce a clear energy policy that would make the implementation of the Nigeria Industrial Policy more effective.

Yumkalla made this call when he delivered “The 6th Adeola Odutola Lecture,” at the Manufacturers Association of Nigeria (MAN) 54th Annual General Meeting (AGM), which was titled “Leveraging National Industrial Policy to Position Nigeria as Africa’s Industrial Hub   policy must be part of an effective industrial policy.

He said: “Energy policy is industrial strategy. If we do not fix that, industry will die because no industrial strategy can succeed without reliable electricity.”

“You know the story. It (energy) is killing your industry. Manufacturers spent an estimated N1.3 trillion on self-generated power in 2025, up from N781 billion in 2023, with energy now accounting for as much as 35 to 40 percent of production costs. Here, some people even say 60 per cent of their operating costs.

“Whereas energy makes up roughly between 5.0 and 15 per cent manufacturing costs in countries such as India, Vietnam, Indonesia, Turkey, Mexico and South Africa.”

He said that industrial policy should not be seen as a piece of paper but a document that truly drive productive capacity, investment, technology, competitiveness, pushes value addition and creates jobs.

He said: “It is about practical and deliberate implementation of industrial policy. It is government deciding that yes, we will drive certain sectors. That is how the Asians have done it because the risks are many.”

Yumkalla said that Nigeria has all the essential foundations needed to become Africa’s industrial powerhouse but emphasised that Nigeria’s industrial challenge is the need to convert scale into productivity, competitiveness, and exports.

He said: “Ladies and gentlemen, for years, one of Nigeria’s biggest economic paradox has been that the country has a large market and abundant resources, yet imports dominate everyday consumption. I am aware of the government’s effort to change this narrative through the NIP.”