Nigeria not ready for industrial boom – Report

Nigeria has yet to meet the structural conditions required to sustain large-scale industrialisation, despite signs of progress, according to the 2025 RED Index of Industrial Development in Africa released by the Business Council for Africa.

In a statement by the Business Council for Africa, obtained by The PUNCH on Wednesday, it was disclosed that only four African economies, Morocco, Egypt, South Africa and Mauritius — were “structurally positioned to sustain high-growth industrialisation.”

It noted that while Nigeria and Rwanda had recorded “meaningful progress”, both countries remained incomplete in their industrialisation trajectory, with most African economies still categorised as either “Vulnerable” or “Stalled.”

The statement read, “Morocco, Egypt, South Africa, and Mauritius emerge as the only economies with the alignment required to sustain industrial growth. Rwanda and Nigeria show meaningful progress but remain incomplete in their trajectory, while the majority of African economies are classified as either Vulnerable or Stalled.”

The statement said industrialisation across Africa was being constrained more by weak structures than by lack of ambition.

It stated, “Industrialisation in Africa is not only constrained by ambition, but by structure. The RED Index identifies, with clarity and consistency, the conditions that determine whether economies can transform at scale — and finds that most African countries do not yet meet them.”

The RED Index evaluates economies using three dimensions, including “Engines of Industrialisation”, which measures foundational capabilities; “Accelerators”, which determine the speed of transformation; and “Decelerators”, described as structural constraints capable of stalling or reversing growth.

According to the report, corruption and security instability remain the continent’s biggest structural setbacks.

It stated, “Across the continent, corruption and security instability remain the most significant decelerators, undermining institutional effectiveness and limiting the execution of industrial policy.”

The report said the framework for the index was built from the historical development experiences of countries such as South Korea, Malaysia, Vietnam, Brazil, Morocco and Ethiopia.

It explained that the index isolated the structural factors that consistently supported industrialisation and was designed to guide long-term policy decisions across African economies.

President and Chief Executive of the Dangote Group, Aliko Dangote, in the foreword to the report, said Africa’s industrial future must be driven internally.

Dangote said, “Africa’s development cannot be imported or outsourced. It must be built, owned, and sustained from within. What is required now is clarity of structure and commitment to execution.”

Chairman of the Business Council for Africa, Arnold Ekpe, described the report as a wake-up call for policymakers and investors across the continent.

“This is not just an index. It is a call to action — for African policymakers, investors, and businesses to take ownership of Africa’s industrial future and commit to the structural changes required to deliver sustained growth,” Ekpe said.

The council added that as global investors increasingly search for scalable and resilient growth markets, the RED Index offers guidance on economies where industrialisation prospects are viable, where risks remain high, and where targeted reforms could unlock long-term value.

Established in 1956, the Business Council for Africa said it was created to provide reliable intelligence to investors interested in African economies and now operates as a not-for-profit organisation focused on promoting African enterprise and investment opportunities.