The Nation Newspaper

Tag: the Manufacturers Association of Nigeria (MAN)

  • Manufacturers seek rate cut to reduce costs

    Manufacturers seek rate cut to reduce costs

    The Manufacturers Association of Nigeria (MAN), yesterday, called on the Central Bank of Nigeria (CBN) to reduce interest rate to push back inflation.

    It also urged the CBN to synergise with the fiscal authority to provide supportive measures that will reposition the manufacturing sector.

    MAN, while reacting to the report of CBN’s Monetary Policy Committee (MPC) meeting held on July 21 -22, 2025, said its decision to maintain the current interest rate is not sufficient to address the inflationary pressure and reposition the economy on the path of growth.

    The MPC had at its 301st meeting to review recent economic and financial developments and the outlook, maintained the Monetary Policy Rate (MPR) at 27.50 per cent.

    It also kept the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50 per cent and 16 per cent for Merchant Banks, and the liquidity ratio at 30 per cent.

    Read Also: NDE opens portal for vocational training of 27,000 unemployed Nigerians

    The Committee noted the decline in inflation rate to 22.22 per cent in June 2025 from 22.97 per cent in May 2025, but observed the uptick in food inflation to 21.97 per cent in June 2025 from 21.14 per cent recorded in May 2025.

    Given the persistent uncertainty in the policy environment and underlying price pressures, the Committee decided to maintain its current stance until risks to inflation recede sufficiently.

    But MAN kicked, arguing that the MPC’s decision to maintain the current interest rate has negative implications on the manufacturing sector, noting that the persistent increase in the rate over the years has impacted the sector negatively.

    “MAN’s expectation is to have a rate cut that is supported by a robust fiscal policy framework capable of facilitating improved access to long term loans, enhanced productivity and sustained economic growth,” MAN Director General Segun Ajayi-Kadri said in a statement, which was made available to The Nation, on Sunday.

    Ajayi-Kadri said while MAN acknowledges the efforts of the MPC to stabilize the monetary parameters with the view to address inflationary pressure, “It is necessary to consider a rate cut to reduce the cost of borrowing and attract investment in the real sector.”

    In addition, he said it is critical that the government consider the need to support the development of the real sector of the economy especially the manufacturing and agricultural sectors, to aid the effectiveness of stabilization policy.

    MAN said apart from a reduction of interest rate to reduce inflation and synergies with the fiscal authority to provide supportive measures that will reposition the manufacturing sector, government should commence the implementation of Nigeria First Policy.

    According to Ajayi-Kadri, implementing Nigeria First Policy will boost local patronage and provide incentives for investment in backward integration and local sourcing of raw materials. “This will reduce the pressure on the dollar to the barest minimum,” he said.

    He also called on government to intensify ongoing efforts at tackling insecurity in farming communities to boost agricultural production and transport logistics, thereby reducing food inflation.

    MAN further called on government to introduce measures that will improve redistribution of income, increase the welfare of the citizens and performance of the economy.

  • MAN assures investors of conducive environment, local content devt

    MAN assures investors of conducive environment, local content devt

    The Manufacturers Association of Nigeria (MAN) has assured local and foreign investors of its commitment to advocating for a business environment  that supports local content development, fair competition, access to raw materials and technology.

    The association made this known at the West Africa Coating Show (WACS), where it emphasised that MAN will continue to work closely with policymakers to eliminate barriers  and promote a regulatory environment that supports innovation and industrial growth.

    The WACS organised by DMG Events in partnership with the Paints Manufacturers Association of Nigeria (PMA), was held recently, in Lagos where the  coatings industry in West Africa, converged to showcase latest innovations, equipment, and raw materials in the field.

    According to the organisers, the event  featured  about 110 leading brands from more than 12 countries.

    The three-day event,  offered stakeholders access to cutting-edge knowledge, transformative partnerships, and emerging market intelligence that could drive product competitiveness, export readiness, and environmental compliance.

    In his address, MAN Director General, Segun Ajayi-Kadir commended the organisers for the maiden edition of the programme.

    Ajayi-Kadir, represented by Oluchi Odimuko, Assistant Director, Sectoral and Regulatory Affairs of MAN noted  that the association acknowledges the critical roles the coatings and allied  industries play in the broader industrial ecosystem, from infrastructure to automotive, construction, and packaging, adding that coatings are indispensable to product durability, aesthetics, safety, and environmental performance.

    Read Also: Nigerian Idol: Purp wins Season 10

    The MAN boss recognised the contribution of local and international participants, that have continued to invest, partner, and innovate within the West African market, assuring that MAN remains fully committed to advocating for a business environment that supports local content development, fair competition, and access to raw materials and technology.

    Paddy O’Neill, Associate Vice President, DMG Events appreciated PMA for the partnership, noting that the show was the ideal platform to engage with influential decision-makers and leading industry players, meet with new and existing customers from the region; gather insight on the latest solutions available in the paint and coatings market; and have meaningful, face-to-face business interactions.

    “We are delighted to welcome 110 exhibitors to this launch event, from 12 countries- including Nigeria, China, Canada, Egypt, India, Italy, Libya, South Korea, Turkiye, United Arab Emirates & the United States, showing that Nigeria and the wider West African region is a market of key interest internationally.

    “The conference and business presentation hub provided the perfect opportunity for attendees to gain insights into the latest industry products, innovations and trends; exchange ideas with industry leaders; and build a strong network in the industry.”

     In his remarks, Chairman, PMA Nigeria, Abimbola Babatunde, said West Africa is blessed with abundant natural resources, which  should be harnessed and used for the development of the sub region and for the good of the people, as this will reduce the ‘japa syndrome,’ create more employment opportunities for the youths and eliminate vices.

    He noted that multinational companies across the globe are looking at emerging markets and West Africa, middle East, South East Asia and South Africa are the new destinations, adding that Nigeria and Ghana are the major emerging markets in West Africa.

    “The two countries are experiencing significant growth and development in the critical areas of their countries’ economies, despite the challenges they face. We believe that after the show, multinational companies will expand their businesses to the West Africa region and indeed Nigeria.  

    The show offered both exhibitors and visitors more rewarding experiences, while opening more business opportunities for the exhibitors (raw materials, machineries, laboratory equipment ( suppliers/ distributors), stakeholders and paints manufacturers in West Africa.”

    He enjoined governments, corporate entities, estate developers, property owners and individuals in the sub region to imbibe the culture of maintenance through regular painting and repainting.

    “Painting beautifies the object, giving it fresh and beautiful look and gives the immediate environment new look. Painting also adds to the value of the property.”

    The Director General/Chief Executive, Standards Organisation of Nigeria (SON), Ifeanyi Okeke, noted that the event remains a vital platform for fostering innovation, collaboration, and excellence within the paints and coatings industry.

    The SON DG, who was represented by Mr Paul Pankes, Group Head, Chemical Technology of the organisation said the programme aligns with the organisation’s mandate of promoting quality safety, and environmental sustainability through standardisation and compliance.

    He said  over the years, SON has worked closely with stakeholders, including the PMA, to ensure the implementation of critical standards, such as the 90ppm lead limit in paints, aimed at protecting human health and the environment.

    He  reaffirmed the organisations commitment to supporting manufacturers, innovators, and entrepreneurs in achieving global competitiveness through adherence to international best practices.

    The Director General /Chief Executive Officer, Raw materials Research and development Council (RMRDC), Prof. Nnanyelugo Martin Ike-Muonso pointed out that  the paints industry remains a vital component of national industrial development, contributing significantly to employment generation, housing, construction, automotive finishing and national aesthetics.

    He said as an institution with the mandate to promote the development and optimal utilisation of  local raw materials as inputs for industries, the RMRDC has over the years, invested heavily in research and development and the promotion of local content to strengthen the industry’s value-chain.

    Oluwasola Marinho, Coordinator, Lagos  RMRDC, who spoke for Ike-Muonso said the council has actively engaged industry stakeholders through policy dialogues, technical workshops and exhibitions, ensuring that research outcomes are effectively transferred to end-users and manufacturers.

    He disclosed that the Council is also in the process of upscaling pilot projects on resin production using indigenous feedstocks, aimed at bridging a critical gap in the local supply-chain and significantly reducing foreign exchange outflows associated with resin imports.

    He said by harnessing the nation’s natural resources and aligning them with modern production techniques, the Nigerian paints industry can become self-reliant, competitive and export-oriented.

  • Crunchy!

    Crunchy!

    MAN’s dire inventory data: a harsh present versus a long-term nirvana

    No surprise about the statistics the Manufacturers Association of Nigeria (MAN) just pushed out: its factory inventory of unsold products ballooned in the first six months of 2024.

    By the numbers, presented by Francis Meshioye, the president of MAN, year-on-year, unsold inventory shot up by 357.57 per cent, in the first half of 2024, a great leap from the first six months of 2023. The corresponding figure for 2023 was N271.96 billion. But by 2024, it had jumped to N1.23 trillion.

    Not only that: MAN’s composite capacity utilisation also dipped, from 56.5 per cent Half-Year 2023 to 56.4 per cent in Half-Year 2024. At less than 60 per cent, capacity utilisation is not great. Still, the very slight decline, despite the heavy headwinds, shows some resilience. How far that resilience would last, with the headwinds unchanging, is open to question. But the omens appear not too good.

    Still, it’s not all bad news, even if the faded glows are nothing to crow about. For instance, though manufacturing output declined from N1.36 trillion in Half-Year 2023 to N1.34 trillion in Half-Year 2024 (1.66 per cent), the sector still grew by 9.97 per cent, if the second six months of 2023 were compared with the first six months of 2024.

    In real terms, however, the “growth” in numbers were fired by high inflation, with the Consumer Price Index (CPI) rising to 34.19 per cent in June 2024. So, though MAN members posted higher accounting figures, the worth of the cash haul is far less. 

    This could make all the difference in staying in the market or dropping out — since hauling more cash for less materials could signpost a progressive decline in business fortunes. That danger is real for many firms in the MAN ensemble. Indeed, the MAN president declared that even with higher investment on paper in the sector — thanks to the Naira’s devaluation — the worth in real terms is far less.

    Read Also: Wini Lizbet bags double nominations at RB Entertainment Awards in UK

    Even then, there would appear some promising signs. Forced by challenges of costly forex (no thanks to the Naira’s floatation against foreign currencies), the sector is experiencing a gradual move to source local raw materials. That’s a good one for business restructuring. 

    If many MAN members can tow this line — including the first generation international conglomerates that would rather continue to import agricultural raw materials they can grow here — there would be less pressure on MAN for forex demands. That would be far better for the economy, and should expand MAN’s capacity utilisation.

    But the flip side of this exciting window is that MAN members — and that is most — still need forex to service, maintain, repair and upgrade their core machinery. That is a big challenge to local engineers and fabricators. 

    To jumpstart this feeder market, the Federal Government should push harder to make the Ajaokuta Steel Mill deliver for the economy. Besides, both the public and private sectors must invest more in research and development (R&D) as part of their core business. In the tradition of Town and Gown, our universities should be integral to such investments, for its sheer mutually beneficial value.

    Another bright spot is electricity power supply. It increased in the first six months of 2024 to a daily average of 11.28 hours. That is praise-worthy, though the problem, even with this improved daily average, is that it is near-permanently erratic. 

    A predictable power supply, merged with these improved daily averages, will really give manufacturing a boon. The flip side, of course, is that the cost of alternative power is still outrageous. The cost of diesel — the choice of industry giants — has shot through the roof. Petrol, which smaller businesses prefer, has since joined it there. This is one reason MAN members will be far better off with more stable electricity.

    But the stark reality of the MAN inventory crisis is how the current economic reforms seem to blight the present, while its goal is a future paradise!

    Petrol subsidy removal has unleashed a high energy cost. If that had always been the story of diesel — which the MAN giants had endured long before the liberalisation of petrol — floating the Naira, against foreign currencies, has added another layer of heavy costs.

    But as costs have gone up, the market from which to recover the costs is shrinking, with high inflation eroding general purchasing power. This is true of manufacturing as it is true of the Uber shuttle operator. The added danger is that headline inflation is on common goods — common goods as crucial and as critical as food!

    That’s the present crunch. So, the government should make necessary adjustments to bring relief to ventures and to households. That’s the imperative that this dire MAN data shrieks!