Tag: Manufacturers Association of Nigeria

The Manufacturers Association of Nigeria (MAN), yesterday, lamented that at between 30 and 37 per cent, borrowing costs remain high for manufacturers, and this rate hinders production and reduces the manufacturing sector’s competitiveness.

MAN, therefore, called on the Central Bank of Nigeria (CBN) to review downward the benchmark interest rate in subsequent meetings of its Monetary Policy Committee (MPC).

The Association said adopting a downward review of the rate will lessen the burden of high borrowing costs and incentivize long-term investments in manufacturing, particularly in capital-intensive sub-sectors.

MAN Director General Segun Ajaiyi-Kadir made this position known on Wednesday while reacting to the report of the 303rd meeting of the MPC held from November 24 -25, 2025.

The MPC had at the meeting agreed to retain the benchmark interest rate at 27.00 per cent that was fixed at its September meeting.

It also adjusted the Standing Facilities Corridor to +50 / -450 basis points around the MPR from +250/-250 basis points to encourage borrowing from the central bank, pushing commercial banks to lend more and reducing upward interest-rate volatility.

The cash Reserve Ratio (CRR) was also retained at 45 per cent for commercial banks and 16 per cent for merchant banks.

The Committee also retained the 75 per cent CRR on non-TSA public sector deposits to manage excess liquidity while maintaining the liquidity ratio at 30 per cent.

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The Committee members expressed satisfaction with Nigeria’s macroeconomic stability, highlighting key improvements such as the continued slowdown in inflation, steady real output growth, a stable exchange rate, and stronger external reserves.

They particularly noted the accelerated pace of disinflation standing at 16.05 per cent in October 2025, the most significant in seven months, attributing this progress to sustained monetary tightening, increased capital inflows, a surplus in the current account, as well as moderating fuel prices, all of which have collectively eased the inflationary pressures.

Reacting, MAN said it appreciates the MPC’s decision to halt the increase in MPR and to maintain the 27.00 per cent fixed at the last meeting, including the decision to adjust the standing facilities corridor to enhance liquidity

Ajaiyi-Kadir, however, said MAN’s expects a further reduction in the rate to reduce the cost of borrowing for manufacturers.

He lamented that despite the reduction at the MPC’s last meeting, borrowing costs of 30 to 37 per cent remain high for manufacturers, which hinders production and reduces the competitiveness of the sector.

The MAN DG insisting that it is essential to reduce the cost of funds to encourage borrowing for expansion and investment.

He added that the emphasis on exchange rate stability and improved forex liquidity is also vital, as manufacturers rely on foreign exchange for imports.

He further stated that persistent high lending rates will further limit access to affordable credit for manufacturers, especially those within the Small and Medium Industries (SMI) cadre.

“The situation is complicated with prevailing structural challenges like poor infrastructure, high logistics costs, inadequate electricity supply, high energy cost and insecurity that cumulatively raise production costs and weaken competitiveness,” Ajaiyi-Kadir said.

He urged the CBN and other policymakers to continue to pursue policies that foster inclusive growth, incentivize manufacturing and address binding constraints limiting the performance of the sector.

“The CBN should also strengthen handshake with fiscal authority to promote reforms capable of unlocking the full potential of the manufacturing sector.

CBN should consider additional policy instruments or incentives that facilitate credit flow to the real sector of the economy, especially the manufacturing sector,” the MAN chief added.Top of FormBottom of Form

Ajaiyi-Kadir also urged closer collaborate between the Federal Government and CBN to stabilize the naira and manage external risks by monitoring the potential risk of capital flights because of the MPC’s corridor review that will push banks to lend more.

MAN also recommended the implementation of complementary fiscal measures that support industrial development and promote structural reforms especially in real sectors of the economy including Agricultural, Manufacturing and Energy sectors to further reduce inflationary pressure.

It also called for urgent resolution of the lingering spate of insecurity in the country, especially in agricultural and industrial zones to stabilize food supply and raw material inputs.

“A secure environment is critical to food security, lower inflation rate and sustained industrial growth in both urban and rural areas,” Ajaiyi-Kadir said.

He also urged CBN to monitor and evaluate the impacts of previous MPC decisions on credit access to the real sector to aid informed position at subsequent meetings.

The Manufacturers Association of Nigeria (MAN) has thrown its weight behind the Federal Government’s recent approval of a 15 per cent import tariff on petrol and diesel.

The association however called for transparent, efficient, and well-coordinated implementation to ensure the benefits of the policy reach both industry and consumers, safeguard competitiveness, and prevent unintended cost burdens.

MAN described the move as “a strategic step and patriotic policy” that aligns with the “Nigeria First” agenda, noting that the import tariff aligns with the association’s long-standing advocacy for local content development and patronage of made-in-Nigeria.

Director General, Manufacturers Association of Nigeria (MAN), Mr. Segun Ajayi-Kadir, in a statement yesterday said the association believes that the 15 per cent tariff on petrol and diesel will accelerate the country’s journey toward energy sovereignty, industrial competitiveness, and sustainable economic growth — all anchored on the strength of made-in-Nigeria.

He called for transparent price monitoring, insisting that government and regulators such as PPPRA, NMDPRA and FCCPC should closely monitor domestic pricing to prevent excessive mark-ups or anti-competitive behaviour.

MAN further pushed for a stable transition period, pointing out that in the initial months of implementation, “the government should support local refiners to ensure adequate fuel availability and prevent supply shocks or speculative hoarding, particularly with the festive period approaching.”

The association said the proceeds from the import duty to be reinvested into energy infrastructure, refinery efficiency, and power support schemes for industries, including credit facilities for industrial energy transition and renewable adoption.

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MAN called on government to provide targeted incentives or rebates for small and medium manufacturers reliant on diesel-powered generators during the transition period.

The association noted the need for government to create an enabling environment and provide targeted incentives to attract investment in additional modular and conventional refineries, noting that this will strengthen domestic refining capacity, promote competition, and ensure long-term energy security.

MAN also stressed the need to ensure stakeholder harmony in the energy sector.

“The government should foster continuous engagement among refiners, marketers, regulators, and consumers to prevent disputes, ensure policy coherence, and sustain market stability,” Ajayi-Kadir said.

He also urged full and speedy privatisation of government-owned refineries.

According to him, it is evident that we may never succeed in restoring them to functionality under the current dispensation. Selling off the refineries will stop the commitment of our scarce financial resources to an evidently irredeemable venture.

Ajayi-Kadir, while acknowledging the policy as a major step in the implementation of Nigeria First policy, reaffirmed MAN’s commitment to supporting the Federal Government’s Nigeria First policy direction, especially on local content development and home grown industrialisation.

He said it is heartening that the policy came less than one month after the 53rd Annual General Meeting (AGM) of MAN with the theme: Nigeria First: Prioritizing Patronage of Made in Nigeria Products.

He stated that the strategic policy has reassured domestic manufacturers that government is attentive to the imperatives of growing indigenous manufacturing.

He said: “It exemplifies government’s commitment to halting the perennial bleeding of our patrimony; asserting the sovereignty of the great country; guaranteeing energy sufficiency and security, and improving the overall wellbeing of Nigerians in this regard.

“This is a sure step in the promotion of local value addition, strengthening domestic refining capacity, conserving foreign exchange, and advancing Nigeria’s long-term industrialisation objectives”.

He added that this will also ensure the naira- for-crude arrangement that will guarantee effective and reliable supply of crude to the local refineries and reduce the pressure on scarce foreign exchange.

He said: “It will also attract more investors, including the holders of the 30 refinery licenses to commit resources in the sector”.

Ajayi-Kadir emphasised that there is no better path to fixing Nigeria’s economy than protecting local industries, encouraging local patronage, fostering value addition, and promoting industrial development anchored on local content.

While pointing out that Nigeria is blessed with enormous oil resources, the MAN DG, however, said it is unfortunate that scarce forex in billions of dollars is still being spent on importing refined petroleum.

“Supporting local refining capacity through appropriate policy tools will conserve scarce foreign exchange, improve the stability of the Naira, and foster a more favourable macroeconomic environment for investment,” he insisted.

MAN said it recognises the importance, significance, and necessity of the approval of the 15 per cent import tariff on petrol and diesel.

The association acknowledged that “the tariff is a rightful, deliberately designed policy instrument intended to protect and encourage domestic producers, curb dumping, and create a stable environment for local refiners to thrive.”

It noted that the tariff will accelerate operational readiness of domestic refineries, thereby reducing disruptions and stabilising energy supply to industries.

MAN said it supports the 15 per cent import tariff as an industrial policy instrument that will encourage the utilisation of local refining capacity and promote backward integration across the energy value chain.

It also anchored its support for the policy on the need to conserve foreign exchange by reducing the nation’s dependence on imported refined petroleum products, and strengthen the manufacturing base through a more stable and predictable fuel supply.

The association also said the policy will generate employment opportunities, build technical expertise, and strengthen industrial linkages between refineries and manufacturers.

Besides, it will promote local content development and stimulate demand for Nigerian engineering, fabrication and logistics services.

“MAN views this policy as a vital step in achieving energy independence and industrial sustainability, both of which are prerequisites for Nigeria’s economic transformation,” Ajayi-Kadir said.

The Manufacturers Association of Nigeria (MAN), yesterday, called on the Federal Government to halt the implementation of the four per cent Free-On-Board (FOB) charge on imports by the Nigeria Customs Service (NCS).

MAN expressed strong objection to what it termed as “subtle reintroduction of the four per cent FOB charge, in contravention of the earlier widely publicized suspension of the charge by the Federal Government.”

The Association said the apparent reintroduction of the four per cent FOB charge on imports, effective August 4, 2025, came as a surprise, as the charge was commendably suspended by the Federal Government.

The suspension, according to MAN, followed the overwhelming condemnation of the charge by virtually all stakeholders, who rightly opined that it was ill-timed and would certainly lead to an instant escalation of the cost of imports.

“Manufacturers were genuinely concerned that it would lead to a significant increase in the cost of raw materials, machine and spare parts that are not available locally and therefore have to be imported,” MAN Director General Segun Ajayi-Kadir said, in a statement, on Monday.

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The statement, which was made available to The Nation, said equally concerning is the prolonged glitch with the Customs’ B’Odogwu platform, which has rendered the process of clearing goods at the ports comatose, with manufacturers incurring demurrage and suffering stock-out in their factories.

Ajayi-Kadir said while MAN deeply appreciates the assurance of the leadership of NCS that efforts are being intensified to restore effective operation of the platform, the problem persists and the attendant hardship for manufacturers and other users continues to mount.

He said MAN is in support of the Federal Government’s efforts to streamline trade processes, reduce the cost of doing business at the port and enhance fiscal transparency.

This, according to him, is because it resonates with the kernel of the Association’s advocacy for a transparent, efficient and friendlier trade facilitation ecosystem that is more service-centric than revenue driven.

Ajayi-Kadir, however, expressed concern that the prevailing situation, notably the sudden re-commencement of the four per cent FOB charge is achieving the exact opposite of these progressive ideals.

He said the outcomes of MAN’s rapid technical assessment of the implications of the charge on the sector show disquieting revelations that portend severe implications, which form the basis for its continued objection and appeal for a cessation of implementation of the Customs’ four per cent FOB charge.

For instance, the notion that the charge streamlines previous multiple charges and reduces cost of cargo clearance, according to Ajayi-Kadir, does not correspond with the reality, as the cost burden of the four per cent charge on manufacturing concern is enormously higher than the combined effect of the seven per cent surcharge and one per cent Comprehensive Import Supervision Scheme (CISS) levy.

The new regime, he said, seeks to charge four per cent of the total value of imports, which is higher than the previous regime where the seven per cent surcharge is based on duty payable.

“Except in the case of luxury goods and prohibited categories (with duty rates above 35%), a threshold analysis reveals that the 4% FOB levy will generally result in a much higher cost burden than the previous one per cent CISS + 7% collection structure.

“So, retaining the previous charge structure better ensured adequate revenue mobilization for Customs without penalizing essential industrial imports. This is more so that some of our members have reported that the seven per cent surcharge subsists”, Ajayi-Kadir pointed out.

He insisted that the introduction of the four per cent FOB charge with its attendant consequence, runs against the objectives of the relevant pillars of the Renewed Hope Agenda of Government, the National Development Plan 2021-2025, current industrial revolution initiatives and trade policy frameworks.

“All these efforts of the government seek to reduce the costs of local production, deepen domestic value chains addition and economic diversification. The reintroduction of this charge is antithetical to the expected outcomes of these laudable government initiatives,” the MAN DG kicked.

He said in view of these stark realities and in alignment with prevailing best practices around the world, the Federal Government and the NCS should halt the implementation of the 4% FOB charge and set a timeframe ending on the 31st of December 2025 for impact assessment and inclusive stakeholders’ consultation.

The consultation, according to him, will determine the appropriate level of charges that will guarantee the efficient performance of NCS.

“This timeframe will just be in sync with the January 2026 take-off date for the recently introduced Tax Laws and would allow room for the convenance of a proper technical session with strategic stakeholders to discuss issues germane to the survival of affected businesses in Nigeria and the development of business-friendly implementation guidelines,” stated. 

He added that in the meantime, the NCS should retain the current 1% CISS + 7% cost of collection fee, which balances revenue generation with industrial competitiveness to save 230 million Nigerians from avoidable price escalation

The Manufacturers Association of Nigeria (MAN) yesterday said the manufacturing sector is positively responding to the economic therapy of President Bola Tinubu

Its Chairman, for Oyo, Osun, Ondo, and Ekiti, Dr Sam Olawoye, said the sector is gradually recovering from recent economic shocks.

He spoke during an interview in Ibadan while assessing the impacts of recent government reforms on the industry.

Olawoye said the removal of fuel subsidy and floating of the naira caused significant disruptions to manufacturing and production costs over the last two years, affecting consumer demand.

“The cost of living and production went up sharply. Manufacturers couldn’t produce or sell as much, and consumers’ purchasing power dropped drastically,” he said.

He, however, noted that the naira has begun to stabilise, and Nigerians are adjusting to the new realities, describing them as painful but necessary for long-term national growth.

According to him, Nigerians are known for their resilience, and many have begun adapting to the economic changes, despite the hardship brought by the reforms.

 “These reforms are critical, if Nigeria’s economy is to avoid collapse. People must learn to earn their living outside of government dependency,” Olawoye said.

He noted that the reforms have forced a shift away from rent-seeking, fostering a culture of productivity and entrepreneurship needed for sustainable economic development.

Olawoye acknowledged that the government has introduced measures to cushion the effects on manufacturers, including relief for pharmaceutical industries through import tariff waivers.

“Pharmaceutical manufacturers now enjoy tariff removals on imported raw materials, which should lead to lower medicine costs,” he said.

He stated that similar relief measures were being extended to other manufacturing sectors to support local production and employment.

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 “Health is wealth, and supporting local pharmaceutical production is a step in the right direction,” Olawoye added.

The MAN chairman said the Tinubu administration has not performed badly, especially considering the scale and necessity of the economic reforms it introduced.

He noted that proceeds from the subsidy removal and currency reforms are being invested in infrastructure like roads and rail transport across the country.

 “These investments show the money saved is not wasted. If government maintains sincerity, Nigerians will eventually see the benefits,” he said.

Olawoye urged the Federal Government to sustain its sincerity and transparency to restore citizens’ trust and ensure lasting economic improvement.

He reiterated that the manufacturing sector remains vital to national development and must continue receiving targeted support to survive current economic challenges.

 “Manufacturing creates jobs, drives innovation and reduces import dependence. A strong industrial base will help Nigeria grow,” he said.

The Manufacturers Association of Nigeria (MAN), yesterday implored the Federal Government to urgently direct the Nigeria Customs Service (NCS) to jettison the idea of the re-introduction of the four per cent Free-on-Board (FOB) levy.

MAN expressed serious concern over the reported plans by Customs to re-introduce the levy, and warned that it will have catastrophic impact on the manufacturing sector in particularly, the business community and Nigerians in general.

Describing the development as “inauspicious,” MAN said if implemented, the four per cent FOB levy will be an additional burden to the one per cent Comprehensive Import Supervision Scheme (CISS) fee being paid by its members.

According to the Director General of MAN, Segun Ajayi-Kadir, this is at a time that all government agencies should be seeking ways to de-escalate cost of doing business in Nigeria, as it is being done in other climes and economies.

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“It is equally worrisome that this is coming at a time when there is still a looming danger of the unwarranted 15 per cent hike in port charges.

“Our members are struggling with the astronomical increase in the effective import duty calculations rate, and contending with unprecedented rise in the cost of energy,” he added.

Ajayi-Kadir, in a statement, which was made available to The Nation, pointed out that the already high cost of importation due to the prevailing exchange rate used in calculating the customs duty will further escalate.

“This is evident in the cost which had earlier jumped by over 118 percent from N2.07 trillion in the first nine months of 2023 to N4.53trillion in the same period of 2024,” he said.

The MAN DG added that the levy will cause heavy disruption in supply chain, trigger raw materials stock-out in many manufacturing concerns, inflict higher cost of demurrage, and further increase the huge volume of unsold inventories and worsen the competitiveness of Nigerian manufacturers.

“The re-introduction of the levy is an additional incentive to smuggling, trade diversion, under declaration of duty and other trade infractions that has bedeviled our country, stretched the capacity of our Customs Service and undermined the revenue profile of the country.

“It will jeopardize the Federal Government’s plan to boost forex earnings through non-oil export, as many manufacturing exporters rely on imports for vital inputs and machines that are not available locally.

“The levy will jeopardize our aspiration to be an investment destination of choice and an industrial hub in the West African sub-region,” Ajayi-Kadir, stated.

Besides, the levy, he said, is coming at a time when the headline inflation has hit a historic record of 34.8 per cent in nearly three decades and majority of Nigerians are struggling hence, the impact on the cost of locally produced items will be instant and far reaching.

The DG further pointed out that the introduction of the levy contradicts the principles of the on-going Fiscal Policy and Tax Reforms and the spirit behind the tax bills currently being considered by the National Assembly.

These efforts, he said, are targeted at eliminating multiplicity of taxes and reduction of tax burden for households, manufacturers and other private businesses.

 Ajayi-Kadir said manufacturers had expected that the NCS would ultimately rescind the move to introduce “the evidently unpopular and ill-timed levy.”

“We didn’t expect to read on the pages of newspapers that the levy will be reintroduced, even before the promised wide consultation with stakeholders like MAN and other private sector organisations.

“We admonish that the decision should be put away before it worsens and degenerates into an economic quagmire,” he said.

The NCS announced the suspension of the implementation of the four per cent FOB import levy, as outlined in Section 18(1) (a) of the Nigeria Customs Service Act (NCSA) 2023.

The decision followed consultations with the Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, alongside other key stakeholders.

This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.

The timing of the suspension aligned with the exit of the contract agreement with the service providers, including Webb Fontaine, which was previously funded through the one per cent CISS fee

But MAN insisted that rather than the alleged plan by Customs to re-introduce the levy, what was needed at this time was the prioritisation of improved trade facilitation that would mitigate the prevailing constraints militating against the optimum performance of the productive sector.

Ajayi-Kadir posited that giving the prevailing economic downturn, the imposition of the levy would only exacerbate the spiraling cost of production and ultimately, compound the dissipating disposable income of the average Nigerian.

“We had expected that in line with the prevailing economic reform agenda of government that seeks to streamline fiscal policies and engender a progressive and business friendly tax regime, we should be experiencing a demonstrated aversion to introduction of fees and levies by government agencies and institutions.

“This is the time for all government institutions to recommit to the reduction of the cost of doing business; expanding the scope of businesses and incentivizing new entrants in the face of high business mortality,” he emphasised.

The MAN DG said it is imperative to warn that the Nigerian manufacturing sector is increasingly being burdened beyond its well-known resilience thresholds, with the results of the quarterly manufacturers CEO confidence index continually showing less optimism about the sector’s outlook

“De-industrialisation stares us in the face. We should not be heading in a different direction when most governments across the world are aggressively promoting their industrialisation agenda and pushing highly nationalist agenda to grow their domestic production,” he concluded.

The Manufacturers Association of Nigeria (MAN), yesterday, threw its weight behind the Federal Government’s proposed reform of free-trade zone operations in Nigeria.

MAN said it will ensure equitable tax treatment for companies operating in the customs territory and those licensed to operate within the free zones with respect to sales into the customs territory, thereby enabling fair competition while protecting the country’s tax base.

MAN Director General Segun Ajayi- Kadir, in a statement, added that licensed entities will also enjoy similar incentives available to entities within the customs territory with respect to their sale of goods and services into the Customs Territory, which is a win-win outcome.

He said it is important to situate MAN’s position within the context of what export processing zones and export free trade zones were created to achieve and the value they are purposed to deliver to the economy.

According to him, it is clear from the enabling laws and in the 3rd Schedule to the Nigeria Export Processing Zone Authority (NEPZA) Act with the first listed approved activity stated as “manufacturing of goods for export”, while other activities relate to international services, transshipment and services within the zones.

While pointing out that the emphasis here is “within the zones,” Ajayi- Kadir said, for instance, that banking is listed as an approved activity but it does not mean that a bank can set up in the zone and render banking services across Nigeria without paying taxes; rather, it refers to banking within the zone and exports.

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“So, this should explain how other activities (apart from manufacturing for export) should be viewed,” he said, noting that the concern of MAN members and the contention here obviously pertain to tax incentives.

“In specific terms, Section 8 on exemption from taxes only applies to approved enterprises operating within a Zone. They are exempted from all Federal, State and Local Government taxes, levies and rates.”

Sales to the customs territory is neither an approved activity nor is it within the zone,” he stated.

The MAN DG, however, said section 18 permits the sale of goods and services to the customs territory, but this does not confer tax exemption on the sales, but rather a regulatory matter regarding what is permissible.

“Over time, the provisions of sections 8 and 18 have been misinterpreted as not only permitting the sale into the customs territory but also as tax exemption. So again, I say this is where the concern of my members and the contention lies: This position is not consistent with the law and it undermines tax-paying entities operating within the customs territory and producing similar goods and services,” he said.

As Ajayi- Kadir asked rhetorically: “Where does the tax exemption enjoyed by the companies operating within the zones leave my more than 2,500 members who operate outside the zone, in terms of level playing field, competitiveness, fairness and equity? They find themselves in a disadvantage position and are rendered less competitive”

He, however, expressed the belief that the tax reform bill before the National Assembly has actually come to the rescue.

“The bill seeks to bring clarity and equity by stating that sales to the customs territory are taxable, not just for import duties and VAT, but also Company Income Tax (CIT) purposes. That is to say that all sellers in the customs territory should be subject to the same tax obligations,” he said.

Ajayi- Kadir stated that subsequently, he does not think that the relevant provisions of the tax reform bill amount to a reversal of the incentives. “It is actually a clarification to align with the intent and letters of the enabling laws. This is in line with global best practice for free zones,” he said.

The MAN boss said in fact, Nigeria will continue to be more generous even after the proposed amendments, noting the situation in nearby Ghana, for instance, which only allows up to 30 per cent sales into the customs territory subject to payment of duties and taxes, including CIT, whereas Nigeria allows 100 per cent sales.

“Exports by a zone entity are tax-free only for 10 years after which up to eight per cent CIT will apply. Nigeria offers indefinite tax exemption on exports,” Ajayi- Kadir stated.

Nigerian manufacturing can generate a minimum of $6.72 billion of foreign exchange (forex) and contribute over 80 per cent of the nation’s non-oil export, if prioritised, the Manufacturers Association of Nigeria (MAN), has said.

Describing manufacturing as “the backbone of the industrial sector,” MAN Director-General Segun Ajayi-Kadir said, for instance, that at 46.5 per cent of industrial output, the manufacturing sector remains the leading contributor to Nigeria’s industrial sector.

Ajayi-Kadir spoke in Lagos  during a Town Hall Meeting between the Minister of State, Industry, Trade and Investment, Sen. John Owan Enoh, and members and representatives of the Organised Private Sector (OPS).

The Town Hall Meeting was the minister’s inaugural engagement with members of the OPS, and it was aimed at fostering more collaboration, promoting inclusivity and initiating transformative conversations to drive Nigeria’s industrial growth.

Ajayi-Kadir, while presenting an overview of the state of the industrial sector, said despite inherent challenges, Nigeria’s industrial value added of $118.22 billion in 2023 ranked second in Africa, all thanks to a resilient manufacturing sector which accounted for $55.74 billon.

“Clearly, manufacturing is the most vibrant sector of any industrialised economy, considering its cross-cutting linkages with all other sectors. Indeed, no economy has developed without the formidable role of manufacturing,” he stated.

The MAN DG, therefore, said the structural change engendered by higher value-added manufacturing operations is the essential route for the Nigerian economy to achieve higher income level and better quality of life for citizens.

Ajayi-Kadir, who reiterated that the manufacturing sector plays critical roles in the nation’s industrialisation and economic development, said, for instance, that manufacturing industries are labour-intensive and create numerous jobs, both directly and indirectly.

 “No other job creator is bigger than the manufacturing sector,” he emphasised, adding that manufacturing requires a skilled workforce, which encourages education and training, leading to a more skilled labor force.

He also said manufactured goods are a significant part of a country’s exports, pointing out that manufacturing has the capacity to contribute over 80 per cent of Nigeria’s non-oil export, which earns the country huge foreign exchange.

Ajayi-Kadir further informed the Minister and other attendees that manufacturing is a major contributor to the nation’s Gross Domestic Product (GDP), contributing about 19 per cent to industrial output in the first nine months of 2024, for instance.

He also stated that a strong manufacturing base helps a country diversify its economy, making it less vulnerable to external shocks such as fluctuations in commodity prices.

Apart from attracting Foreign Direct Investments (FDIs), which brings in capital, technology, and management expertise, virile manufacturing, he added, benefits from economies of scale, which can lead to lower costs and higher productivity as production levels increase.

The MAN DG also pointed out that the manufacturing sector is at the forefront of technological advancements and innovation which can lead to more efficient production methods and new products development.

Ajayi-Kadir, however, lamented that despite these immense potential, Nigeria’s industrial sector is continually beset with difficulties, with the current state of the manufacturing sector and by extension, the economy raising concerns among industrialists.

This depressing situation, he said, stem from factors such as the prevailing unstable economic indicators, including high inflation, poor infrastructure, electricity challenges, high cost of credit, naira devaluation, foreign exchange shortages and multiple taxation among others.

 “These,” the MAN boss lamented, “have led to closure of companies, high unemployment rate and increase in crime rate. For instance, as at 2023, 335 manufacturing companies became ailing and 767 shut down operations nationwide.”

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Giving more insight into how these came about, Ajayi-Kadir said, for instance, that at 30-35 per cent, the prevailing high interest rates and limited access to credit have made it difficult for manufacturers to secure the funding needed for expansion or modernization.

He also lamented that with a staggering N3.04 trillion worth of raw materials imported in 2023 alone, Nigeria’s heavy dependence on imported raw materials exposes many manufacturers to global market fluctuations and foreign exchange risks.

Ajayi-Kadir further lamented that insecurity manifesting in insurgency, banditry, kidnapping, vandalism, and community unrest has continued to disrupt manufacturing operations, resulting in the loss of 50 per cent of members of MAN in the North east region of Nigeria alone.

He listed other challenges stifling the industrial sector to include infrastructure deficit such as inadequate electricity supply, poor road networks, and insufficient water supply; inadequately trained technical and managerial personnel, which affect productivity and innovation.

The MAN DG said, for instance, that with the over 250 per cent tariff hike by Electricity Distribution Companies (DisCos), the need to overhaul the power sector and incentivize investment in renewable energy has never been this compelling.

He specifically urged the Federal Ministry of Power to “Conduct a transparent review of the electricity tariff structure, ensuring it reflects the true cost of production while being fair and sustainable for both businesses and consumers, as well as develop framework for stakeholders’ engagement on power tariff structure adjustment.”

Ajayi-Kadir also called on government to utilize the 2025 Budget to sustain efforts at improving infrastructural developments in strategic industrial hubs and also expend cost savings from fuel subsidy removal to combat pressures from insecurity, energy and transport costs.

He also said patronage of Made-in-Nigeria products for government contracts and projects should be prioritised, including boosting the level of liquidity and degree of transparency in the official forex window and building a well-organised and formal service sector to widen the tax net and avoid multiple taxation.

According to him, multiple taxation has become a pain in the neck of manufacturing companies, with many of them paying more than 60 taxes to the three tiers of government; some pay as many as 120 taxes.