The Manufacturers Association of Nigeria (MAN) says the 2025 manufacturing sector outlook largely depends on the success of the ongoing economic reforms in the country.
MAN President, Otunba Francis Meshioye, said this at the ninth edition of the MAN Media Personality of the Year Award and the 2025 Presidential Media Luncheon.
Meshioye listed the ongoing reforms to include the implementation of the proposed tax reforms, stabilisation of critical macroeconomic indicators, and targeted investments in infrastructure and technology.
He noted that Nigeria’s manufacturing sector encountered a myriad of macroeconomic and infrastructural challenges that severely impacted its performance in 2024.
These factors, Meshioye stated, collectively strained the sector’s profitability and curtailed its contribution to the nation’s Gross Domestic Product (GDP).
“Inflation in Nigeria reached an alarming 34.6 per cent by November 2024, diminishing consumers’ purchasing power and causing a decline in demand for manufactured goods.
“This inflationary burden also led to an accumulation of unsold inventory, which rose to N1.4 trillion across the manufacturing industries.
“At the same time, the floating of the exchange rate resulted in a steep depreciation of the Naira, which fell from N666 per dollar in mid-2023 to over N1,700 by mid-2024.
“This depreciation inflated the costs of imported raw materials and machinery, worsening the already strained profitability of manufacturers,” he said.
Meshioye, however, noted that the country’s projected economic growth in 2025 pegged at around four per cent was a modest recovery compared to previous years.
He projected that in the year, interest rate would begin to ease, as its continued hike by the Central Bank of Nigeria (CBN) had failed to curb inflation, but had stifled investment and business expansion.
According to him, only a favourable interest rate environment will help manufacturers access the necessary financing to reinvest in their operations and drive productivity.
He also projected that naira would hover between N1,500 and N1,650 per dollar in the first quarter of 2025 following the effective management of the Electronic Foreign Exchange Matching System.
“Given the ongoing fiscal and monetary reforms of the present administration, the contraction of economy is expected to ease and experience some growth this year with stability in the exchange rate regime in 2025.
“Similarly, the efficient adoption Artificial Intelligence will be a game changer for the manufacturing sector in 2025 and the nearest future.
“This is expected to help in engendering enhanced production and productivity, improved capacity utilisation, innovative product development, improved inventory system, efficient logistics operations and others,” he said.
He said for the sector to regain momentum, efforts to improve productivity and enhance competitiveness must be sustained.
Meshioye called for government’s alignment with the association’s conviction that a win for the manufacturing sector was a win for the economy and by extension, a better life for the citizenry.
He urged government to timely pass the four tax bill before the National Assembly, implement the made-in-Nigeria products patronage policy, tame inflation and upgrade infrastructure.
“It is also important that government ensure food security and promoting local sourcing of raw materials, address policy inconsistency and promote energy security.
“We also call for prompt clearance of backlog of foreign exchange foreword by the CBN and lastly ensure affordable lending rate and increased access to credit,” he said.
Meshioye also lauded the media for the good work in urging government to implement the right policies that were favourable to the survival of the real sector of the economy.
He noted that the Nigerian media had played a critical role in magnifying MAN’s research based advocacy and supported the association to success over the years.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
