MAN to FG: Manufacturing Sector on Its Last Breath

• The Manufacturers Association of Nigeria warns that the manufacturing sector faces significant challenges, urging government intervention to ensure economic stability in 2025

• MAN calls for increased domestic production and support for Made-in-Nigeria goods to alleviate foreign exchange pressures and boost the economy

The Manufacturers Association of Nigeria (MAN) has warned the federal government that the country’s manufacturing sector is struggling to survive. It emphasized that without immediate interventions, the nation’s economic future remains uncertain.

MAN stressed that 2025 is a crucial year where the government must lead by example. It called for increased domestic production and patronage of Made-in-Nigeria goods to ease forex demand pressure.

This statement was part of the Fourth Quarter of 2024 Manufacturers CEOs Confidence Index, signed by MAN’s Director General, Segun Ajayi-Kadir.

The report outlined several challenges facing manufacturers, including high electricity tariffs, fluctuating exchange rates, rising interest rates, and excessive taxation.

The report also highlighted a reduced confidence level among manufacturers for early 2025, citing a harsh macroeconomic climate and an expected business slowdown.

According to the report, 2025 is a defining moment for the manufacturing sector. Rising electricity costs, unstable exchange rates, multiple taxes, high interest rates, restricted credit access, and security concerns remain major hurdles.

MAN insisted that the government must take clear and actionable steps to meet its goal of reducing inflation to 15% and stabilizing the naira at N1,500/$.

To restore trust in locally made products, MAN urged government agencies to lead by example by prioritizing Nigerian-made goods.

As part of a 15-point recommendation, MAN called for the suspension of the 15% increase in port charges and the 4% FOB levy until wider consultations with the Organised Private Sector take place.

It also recommended implementing the National Single Window (NSW) project to enhance trade efficiency, lower business costs, and boost customs revenue without further raising import duties.

Additionally, MAN urged the government to halt interest rate hikes, strengthen the Bank of Industry to meet industrial credit demands, and resolve the outstanding $2.4 billion forex forward contract to restore market confidence.