Nigeria’s Manufacturing Sector in Free Fall Years After Obasanjo’s Saturday Meetings Ended

When former President Olusegun Obasanjo held mandatory Saturday meetings with manufacturers at Aso Rock, the sessions served as a direct pipeline for industry concerns to reach the highest office. Industry leaders, including Femi Otedola, Tony Elumelu, and Aliko Dangote, received presidential support during that era. But since those meetings stopped, Nigeria’s manufacturing sector has faced a steady and alarming decline that industry watchers say is no coincidence.

Dr. Stella Okoli, founder of Emzor Pharmaceuticals, recently recalled the Obasanjo-era practice in a post on X, noting that no such engagement exists today. Her observation has reignited debate about the disconnect between the presidency and the productive sector.

Stella Okoli, the founder of Emzor Pharmaceuticals, how Obasanjo always engaged all the manufacturers in Nigeria.

During Obasanjo 's regime, all manufacturers in Nigeria used to have a meeting with the president in Aso Rock every Saturday.

The meeting was to discuss about… pic.twitter.com/PHyAjy5JG1

— Tuchel (@Officially_Kriz) June 27, 2026

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Data from the Nigerian Economic Summit Group paints a grim picture. Manufacturing’s contribution to GDP has fallen from 9.2% in 2018 to just 8.6% in 2024. The sector shed nearly 19,000 jobs in the first half of 2025 alone, more than double the losses recorded in the same period the previous year. Manufacturing Value Added plummeted from $55.9 billion in 2023 to $25.36 billion, while unsold inventory has surged past N1 trillion, signalling a collapse in consumer demand.

Manufacturers now operate at roughly 50% capacity, and the sector accounts for a meagre 3% of Nigeria’s total exports. High borrowing costs reaching up to 36.5%, unreliable power supply, forex scarcity, and crumbling infrastructure have created a hostile operating environment. Despite commercial banks posting record revenues, credit to the manufacturing sector contracted by N1.92 trillion in 2025, representing a 22.5% decline, as lenders prefer the more profitable oil, gas, and finance sectors.

Successive administrations have failed to reverse the decline. Executive Orders aimed at boosting local production have had little impact, and major industrial projects like the Ajaokuta Steel plant remain incomplete. Even the bold reforms introduced by President Bola Tinubu, including the removal of the fuel subsidy and the floating of the naira, have brought short-term pain without delivering the anticipated industrial revival.

The end of the Saturday meetings also marked a broader breakdown in direct presidential engagement with the productive sector. Political culture shifted toward godfatherism and fierce rivalries, moving away from the consensus-driven approach that characterised Obasanjo’s early years. Power has since shifted from the Peoples Democratic Party to the All Progressives Congress, which now dominates the political landscape.

Obasanjo himself has recently described Nigeria as a “trading outpost” for foreign manufactured goods, a verdict that many see as a self-fulfilling prophecy. The structural decline of manufacturing, weak policy implementation, and the absence of consistent high-level engagement have left the economy dangerously exposed.

For Dr. Okoli and her fellow manufacturers, the question remains whether any future administration will revive the kind of direct engagement that once gave the sector a voice at the highest level of government

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