The Manufacturers Association of Nigeria (MAN) has issued a stark warning to the federal government, declaring that the manufacturing sector "is on its last breath" and cautioning that "the future of the country will continue to hang in balance unless the plights of manufacturers are adequately addressed with appropriate interventions."
In its Fourth Quarter of 2024 Manufacturers CEOs Confidence Index report, signed by MAN Director General Segun Ajayi-Kadir, the association emphasized that 2025 represents a critical period during which the government must take intentional action to boost domestic industrial production and promote Made-in-Nigeria products to alleviate foreign exchange demand pressures.
The report details numerous challenges currently facing manufacturing companies across Nigeria, including exorbitant electricity tariff hikes, volatile exchange rates, rising interest rates, and limited access to credit. These persistent issues have led manufacturers to downwardly revise their expectations for the first quarter of 2025, citing the prolonged harsh macroeconomic environment and predicted slowdown in business activity.
"In specific terms, the manufacturers' outlook for 2025 stands at the crossroads of optimism and reality checks," the report states. "2025 is a pivotal year and the outcome will be crucial for this most significant sector."
MAN has called on the government to pursue President's ambitious goals of reducing inflation to 15 percent and stabilizing the naira at ₦1,500/$ through clearly defined and easily assessable actions with appropriate timelines. The association also emphasized that government Ministries, Departments, and Agencies (MDAs) must lead by example in prioritizing Nigerian-made products.
To address these concerns, MAN has proposed a comprehensive 15-point action plan for the federal government, which includes:
1. Suspending the 15% hike in port charges and the 4% FOB levy pending wider consultation with the Organized Private Sector
2. Implementing the National Single Window (NSW) project to facilitate trade, reduce business costs, and boost Nigeria Customs Service revenue without further import duty increases
3. Pausing interest rate hikes
4. Increasing the capital base of the Bank of Industry to meet industrial credit demands
5. Honoring the unsettled $2.4 billion Forex forward contract to restore manufacturers' confidence in the market
The urgent tone of MAN's message underscores the critical state of Nigeria's manufacturing sector as it navigates multiple economic challenges in 2025.
