The Manufacturers Association of Nigeria (MAN) yesterday told the federal government that the sector “is on its last breath” as “the future of the country will continue to hang in balance unless the plights of manufactures are adequately addressed with appropriate interventions.”
MAN also declared that year 2025 is a critical period where the government must lead by example “By intentionally ramping up domestic industrial production and patronizing Made-in-Nigeria to further reduce the Forex demand pressure.”
This was contained in the Fourth Quarter of 2024 Manufacturers CEOs Confidence Index signed by the Director General of MAN, Segun Ajayi-Kadir.
The report detailed the prevailing macroeconomic and operational challenges endured by manufacturing companies in Nigeria including electricity tariff, exchange rate, interest rate hikes among others.
The report also confirmed a downward review of manufacturers’ expectations for the first quarter of 2025 due to the prolonged harsh macroeconomic environment and the predicted slowdown of business activity in the first month of 2025.
According to the report: “In specific terms, the manufacturers’ outlook for 2025 stands at the crossroads of optimism and reality checks.
“2025 is a pivotal year and the outcome will be crucial for this most significant sector. The exorbitant electricity tariff hike, high exchange rate, multiple taxation, high interest rate, low credit access and insecurity remain some of the top challenges of manufacturers.”
MAN insisted the president’s ambitious goal of taming inflation down to 15 percent and stabilizing the naira at N1,500/$ must be pursued by clearly defined and easily assessable actions, with appropriate timelines.
To boost Nigeria’s trust in locally made products, MAN said government MDAs must demonstrate by leading the charge and making Nigerian products their first choice.
MAN recommended a 15-point action plan for the FG, which includes; suspension of the 15% hike in port charges and the 4% FOB levy pending wider consultation with the Organised Private Sector. Implementation of the National Single Window (NSW) project to aid trade, reduce cost of doing business and boost the revenue base of the NCS without further hike in import duties.
The body also asked the government to pause interest rate hikes, increase the capital base of the Bank of Industry to meet the credit demand of industries and honour the unsettled $2.4 billion Forex forward contract to further increase Manufacturers’ confidence in the market.
