The Manufacturers Association of Nigeria (MAN) has sounded the alarm over the worsening plight of its members, stating that the sector is 'sinking' under the weight of soaring operational costs, foreign exchange scarcity, and inconsistent government policies. In a recent briefing, MAN President Dr. Francis Meshioye declared that without immediate intervention, many factories face permanent shutdowns.
Production Costs Skyrocket
According to MAN's latest economic review, production costs have surged by 45% year-on-year, driven mainly by elevated energy expenses and raw material import tariffs. The report notes that manufacturers now allocate over 60% of their operational budget to energy alone. 'We are bleeding. The cost of diesel, the instability of power supply, and the hike in import duties have made it impossible to remain competitive,' Meshioye said.
Foreign Exchange Crunch Worsens
The persistent forex liquidity crisis has compounded the problem, with manufacturers unable to access dollars to import essential machinery and inputs. The naira's volatility has eroded profit margins, forcing many to operate at below 30% capacity. 'We cannot plan. Every week the exchange rate changes, and our lenders refuse to extend credit lines,' lamented a textile mill owner in Kano who spoke on condition of anonymity.
Calls for Urgent Policy Reforms
Industry leaders are urging the federal government to implement a comprehensive relief package, including tax waivers, lower interest rates on loans, and a stable forex window for raw material imports. 'We need a Marshall Plan for manufacturing. Without it, we will not survive the next six months,' warned the director-general of MAN, Segun Ajayi-Kadir. The association has also called for a reduction in the central bank's benchmark interest rate, currently at 27.5%, which has stifled investment.
Impact on Jobs and Economy
The manufacturing sector, which employs over 4 million Nigerians, is shedding jobs rapidly. A recent survey by the National Bureau of Statistics indicated that the sector's contribution to GDP has fallen to 9.2%, its lowest in a decade. 'Every factory that closes means hundreds of families lose their livelihood. This is a national emergency,' said economist Dr. Olaoluwa Johnson. The ripple effects are already being felt across the supply chain, with retailers and logistics providers reporting reduced orders.
Government Response Remains Tepid
Despite the mounting pressure, the government has yet to unveil any targeted relief. A spokesperson for the Ministry of Industry, Trade and Investment said only that the administration is 'aware of the challenges and working on comprehensive solutions.' However, manufacturers dismiss this as mere rhetoric. 'We have heard promises for years. Meanwhile, our factories are sinking deeper. We need action, not words,' Meshioye added. Unless the government moves swiftly, analysts predict a wave of insolvencies that could cripple the nation's industrial base.
