The Manufacturers Association of Nigeria (MAN) has raised alarm over the deteriorating state of the country’s manufacturing sector, warning that it is “on its last breath” due to severe macroeconomic challenges.
In its Fourth Quarter 2024 Manufacturers CEOs Confidence Index, MAN highlighted 2025 as a critical year for the sector’s survival, urging the federal government to boost domestic industrial production and prioritize Made-in-Nigeria products to ease forex demand pressure.
The report, signed by MAN’s Director General, Segun Ajayi-Kadir, outlined key obstacles crippling manufacturers, including soaring electricity tariffs, exchange rate volatility, interest rate hikes, multiple taxation, and insecurity.
It also revealed dwindling business confidence, with manufacturers lowering expectations for Q1 2025 due to persistent economic difficulties and an anticipated slowdown in business activity.
“2025 stands at the crossroads of optimism and reality checks. If urgent steps are not taken, the future of the country will continue to hang in the balance,” the report stated.
To revive the sector, MAN proposed a 15-point action plan, including:
- Suspension of the 15% hike in port charges and 4% FOB levy pending wider consultation with the Organised Private Sector.
- Implementation of the National Single Window (NSW) project to ease trade, reduce costs, and boost customs revenue without raising import duties.
- Pausing interest rate hikes and increasing the Bank of Industry’s capital base to meet industries’ credit needs.
- Honoring the $2.4 billion Forex forward contract to restore manufacturers’ confidence in the market.
MAN also urged government agencies to prioritize Nigerian-made products, emphasizing that restoring confidence in local manufacturing is key to economic stability.
