Before the ‘Make in India’ policy was introduced in 2014, India’s automobile sector had been grappling with high taxes and regulatory hurdles that were stifling its growth.
However, since the launch of the policy shift that integrates digital technologies with traditional manufacturing processes, India’s automobile industry has undergone a remarkable transformation.
Tata Motors, India’s largest automobile manufacturer, is a success story of the Make in India policy. The policy has been a game-changer for Tata Motors, enabling the company to tap into the growing demand for affordable and sustainable mobility solutions.
The surge in the automotive sector has not only expanded India’s position in the Original Equipment Manufacturer (OEM) suppliers’ market but has also attracted a remarkable 57% rise in Foreign Direct Investment (FDI) equity inflow within the manufacturing sector from 2014 to 2022.
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These investments have paved the way for technological advancements, setting the stage for a potentially remarkable $1 trillion manufacturing sector by 2025–2026 and firmly establishing India as a leader in the Industry.
“The Make in India policy has been a successful initiative,” Abhishek Singh, India’s high commissioner to Nigeria, said at the 5th Adeola Odutola Lecture, in a panel discussion.
“We have graduated to become an alternative manufacturing destination for the world,” Singh said.
“There has been a great revolution in the age of doing business and because of that, the capacity of Indian manufacturing firms has increased tremendously,” he added.
He urged Nigeria to learn from the Make in India policy and replicate it with the Nigeria First policy, noting that boosting local production is vital for a country’s self-reliance.
Similarly, the Made in Puerto Rico (Hecho en Puerto Rico), launched in 2005, is another clear example of how a country can boost its local manufacturing through deliberate policies.
The initiative has been a huge success, driving economic growth and promoting local entrepreneurship. It has transformed the country into the fifth-largest pharmaceutical manufacturing hub globally, with the industry generating over $3 billion in taxes and accounting for 50% of exports.
The Island is home to over 80 pharmaceutical plants and the third-largest biotechnology manufacturer and the seventh-largest medical device exporter.
Its manufacturing accounted for a staggering 45.6% of gross domestic product (GDP) in 2023, according to data from the World Bank.
From tax incentives to investment in infrastructure, Nigeria can learn from Puerto Rico and India’s manufacturing playbooks in its push for local manufacturing boost and import reduction.
Africa’s most populous nation launched the Nigeria First policy in May 2025 to prioritise local production and services, cut import dependence, stimulate economic growth, and create jobs.
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The Nigeria First policy
The Manufacturers Association of Nigeria (MAN) has stressed that effective legislation and implementation are crucial for the success of the ‘Nigeria First’ policy.
“The Nigeria First agenda is not about closing our doors to the world; it is about opening the right doors to Nigerian-made solutions, Nigerian jobs and Nigerian ingenuity,” Francis Meshioye, president of MAN, said at the 5th Adeola Odutola Lecture in Lagos.
“Every industrialised country began its journey by nurturing local content and leveraging public and private procurement as an avenue for galvanising scale production and economic development. Nigeria must not go the opposite direction,” Meshioye noted.
Critical issues such as FX volatility, high borrowing costs, inadequate infrastructure, policy inconsistency, and insecurity have left Nigeria’s manufacturing struggling for years and gasping for breath.
These problems have existed since the 80s and are remain many years later.
Puerto Rico and India’s industrial success have shown that building competitive manufacturing is the quickest way a country can climb the productivity ladder and raise living standards.
Successive governments in Nigeria have made several moves to boost local manufacturing without providing the enabling environment that drives industrialisation.
India and Puerto Rico’s industrial development is an example of how Nigeria can improve the economic lifestyle of its 200 million citizens, whose living standards have worsened in recent years by addressing critical issues stalling industrialisation.
Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), noted that growing the Nigerian manufacturing sector is a prerequisite for raising living standards and economic stability.
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Nigeria’s manufacturing performance
Nigeria’s manufacturing real growth has remained sluggish in the last five years, averaging a growth rate of 1.95%.
The rebasing confirms that Nigeria’s economy is bigger but less productive and industrialised, according to MAN.
In 2024, according to MAN, 18,000 jobs were lost, with the North-East region accounting for 60% of businesses that shut down operations during the period.
Manufacturing exports accounted for only 5.5% of total exports, a figure that reflects the sector’s marginal integration into global and regional value chains.
“The trend in the manufacturing sector is not the result of market failure. It is the outcome of an inclement macroeconomic environment, policy failure, regulatory tyranny, inconsistent implementation, weak enforcement and inadequate protection of the local industry,” Meshioye said.
