Manufacturers Call for Government Support in 2025, Highlights Trends That Will Shape Industry
By Azeez Disu
As Nigeria looks toward the future, the Manufacturing Association of Nigeria (MAN) has outlined critical trends and necessary government support that could significantly shape the country’s manufacturing sector by 2025. With projections indicating a modest economic growth rate of around 4%, the association emphasizes that the success of ongoing economic reforms will be pivotal to achieving this goal.
The President of MAN, Otunba Francis Meshioye, during his presentation at the 2025 edition of the MAN Media Personality of the Year Award/Presidential Media Luncheon held recently, said that the implementation of the proposed tax reforms, stabilization of key macroeconomic indicators, and targeted investments in infrastructure and technology are essential for revitalizing the manufacturing landscape.
“The outlook for the manufacturing sector in 2025 largely depends on the success of ongoing economic reforms, which include: the implementation of the proposed tax reforms, stabilization of critical macroeconomic indicators, and targeted investments in infrastructure and technology,” he explained.
The Central Bank of Nigeria (CBN) has faced criticism for its ongoing interest rate hikes, which, according to MAN, have failed to reduce inflation and have instead hindered investment opportunities for manufacturers. The association advocates for a favourable interest rate environment to facilitate access to financing, enabling manufacturers to reinvest in their operations and enhance productivity.
“Looking ahead to 2025, Nigeria’s overall economic growth is projected to be around 4%, a modest recovery compared to previous years, though still lower than the average growth rate for sub-Saharan Africa. We should expect that interest rates will begin to ease, as its continued hike by the CBN has failed to curb inflation and has instead stifled investment and business expansion. Only a favorable interest rate environment would help manufacturers access the necessary financing to reinvest in their operations and drive productivity,” Meshioye said.
Exchange rate stability is another area of concern for MAN. He explained that the Naira is expected to fluctuate between ₦1500 and ₦1650 per dollar in early 2025, contingent upon the effective management of the Electronic Foreign Exchange Matching System (EFEMS) introduced by the CBN in late 2024. Proper implementation of this system could help stabilize the exchange rate, providing a more predictable environment for manufacturers.
MAN also foresees that the integration of Artificial Intelligence (AI) will revolutionize the manufacturing sector. By enhancing production processes, improving inventory management, and optimizing logistics operations. “the efficient adoption of Artificial Intelligence (AI) will be a game changer for the manufacturing sector in 2025 and the near future. This is expected to help in engendering enhanced production and productivity, improved capacity utilization, innovative product development, improved inventory system, efficient logistics operations, etc.”
The association asserts that a robust manufacturing sector is crucial for Nigeria’s overall economic growth and development. To this end, they have proposed several recommendations for government action, including the timely passage of four pending tax bills before the National Assembly, Implementation of policies promoting made-in-Nigeria products, Coming up with strategies to tame inflation, Ensuring food security, and encouraging local sourcing of raw materials.
It also urged the government to address policy inconsistencies, Upgrade critical infrastructure, particularly roads and railways, Promote energy security and review electricity tariffs downward, Prompt clearance of foreign exchange backlogs by the CBN, and Ensure affordable lending rates and increased access to credit.
MAN’s call for government support underscores the belief that strengthening the manufacturing sector will not only bolster the economy but also improve the quality of life for Nigerian citizens. “A win for the manufacturing sector is a win for the economy and by extension, a better life for the citizenry.”