Nigeria - Industry
Manufacturing accounted for less than 5% of GDP in 1999, but experienced 4.9% growth in 2000. Due to the high costs of production that result from inadequate infrastructure, Nigeria's manufacturing capacity utilization remains low. Industry as a whole contributed 33% of GDP in 2000, mostly in the oil sector.
Nigeria is the 10th largest producer of oil in the world, and third in Africa. The oil sector supplies 95% of foreign exchange earnings and over 90% of total exports. Nigeria has proven oil reserves of 22.5 billion barrels. Nigeria's crude oil refining capacity was 439,000 barrels per day in 2002. There are four refineries in Nigeria, and hydrocarbon production is centered around Eleme, Warri, and Kaduna. Sabotage, fires, extended maintenance, and management problems plague the oil industry, however. As well, there has been political unrest raised over the issue of the equitable sharing of Nigeria's oil profits with the population. Nigeria has an estimated 124 trillion cubic feet (Tcf) of natural gas reserves, and the natural gas industry is seen to have great potential.
In October 2002, the International Court of Justice ruled in favor of Cameroon in its border dispute with Nigeria over the oil-rich Bakassi peninsula.
The textile industry is still in early stages of development. Between 60% and 70% of all raw materials used in textile production come from local sources. Foreign investment in the textile industry is led by Chinese and Indian investors. Other areas of expansion include cement production, tire production, and furniture assembly. The Delta Steel Plant at Aladja, built by a German-Austrian consortium, began production in 1982 and supplies three steel rolling mills at Oshogbo, Katsina and Jos. The steel complex at Abeokuta began producing in 1983 and was renovated in 1995. In 1999 most of these steel mills were inoperative, and the ones that did work had very small production rates.
Other important industries included sawmills, cigarette factories, breweries, sugar refining, rubber, paper, soap and detergent factories, footwear factories, pharmaceutical plants, tire factories, paint factories, and assembly plants for radios, record players, and television sets. Nigeria had five state-owned motor-vehicle assembly plants for Volkswagen, Peugeot, and Mercedes products. Nigeria's motor vehicle production rate increased by 10% in 2000–01.