Nigeria has been ranked as the eighth most industrialised country in Africa and the 98th globally, according to a new United Nations report. 

The ranking, released during the Nigeria Economic Summit in Abuja, highlights both the promise and the struggles of Africa’s largest economy.

Nigeria’s Position: Progress with Caveats

The United Nations Industrial Development Organisation (UNIDO) measures industrial growth through its Competitive Industrial Performance Index (CIP). 

In the latest report, Nigeria secured a spot among Africa’s top 10, but its ranking also reveals how much ground remains to be covered.

Despite being Africa’s largest economy by population and market size, Nigeria trails behind countries like South Africa, Egypt, and Morocco, which have developed more competitive manufacturing sectors. 

South Africa leads the continent, powered by its automobile industry, mining, and advanced manufacturing. Egypt follows closely with strength in textiles, construction, and energy.

Nigeria, on the other hand, owes much of its industrial score to oil exports, a sector critics argue has held back broader industrial development.

The oil dependence dilemma

Experts say Nigeria’s continued reliance on crude oil exports has slowed down industrial progress. While the country produces significant volumes of oil, it lacks strong refining capacity and value-added industries around the sector.

Industrial policy analyst Kelvin Emmanuel noted that Nigeria’s manufacturing value per person is just $216, compared to South Africa’s $645 and Egypt’s $524. 

He stressed that instead of exporting raw resources, Nigeria should be refining its oil and building manufacturing industries that can compete globally.

He further called for the urgent implementation of the Petroleum Industry Act (PIA) and alignment with the African Union’s Agenda 2063, which sets out a roadmap for industrial growth across the continent.

Calls for diversification beyond oil

At the Summit, several speakers urged Nigeria to diversify its economy if it hopes to rise in future rankings. 

Laura Ani, a legal expert and co-lead on Mining at the NESG Industrial Policy Commission, warned that Nigeria’s over-reliance on oil was unsustainable.

According to her, the country’s future lies in investing in agriculture, solid minerals, and technology. “Oil cannot remain our only driver. We must spread our risks into sectors that can deliver long-term growth,” she said.

This call echoes findings from the Africa Policy Institute, which has repeatedly warned that Nigeria’s industrial progress will remain limited unless the country deliberately invests in non-oil sectors.

Global ranking as a wake-up call

While Nigeria’s global position at 98th might appear modest, analysts say it is an important reminder of both the opportunities and risks facing the country. 

Being recognised as part of the global industrialisation league signals progress, but the low ranking shows how far Nigeria must go to catch up with peers on the continent and beyond.

The United Nations’ index points to areas where reforms are critical electricity, infrastructure, policy stability, and investment in innovation. Without addressing these, Nigeria risks being left behind, despite its market size and population advantage.

Top 10 Most Industrialised African Countries

According to the UN report, Africa’s leading industrialised nations are:

• South Africa
• Egypt
• Morocco
• Tunisia
• Kenya
• Ethiopia
• Ghana
• Nigeria
• Tanzania
• Senegal

Nigeria’s placement within this list is significant, but it also shows that countries with smaller economies like Tunisia and Senegal are pulling ahead through targeted industrial policies.

The road ahead for Nigeria

For Nigeria, the report is less a celebration and more a call to action. Experts believe that with consistent reforms, heavy investment in power and infrastructure, and support for local industries, the country can climb higher both in Africa and globally.

President Bola Tinubu’s administration has been urged to prioritise diversification and adopt policies that encourage homegrown manufacturing and innovation. 

The message from stakeholders is clear: Nigeria must move beyond oil if it hopes to secure a stronger position in the global industrial race.