President of the Manufacturers Association of Nigeria (MAN), Chief Francis Meshioye, has said that the manufacturing sector was severely impacted in 2024 by macroeconomic challenges specifically the high inflation rate, high interest rates, and the Naira’s depreciating value.
Meshioye said this at the Lagos Chamber of Commerce and Industry (LCCI) 2025 Economic Review and Outlook Conference on Thursday in Lagos.
The President, who was represented by Dr Segun Alabi, MAN’s Head of Corporate Communications, noted that these challenges, in addition to increased electricity tariff stifled the manufacturing sector’s contributions to Nigeria’s GDP.
He urged the government to find solutions to these challenges to boost productivity and facilitate national development.
Speaking on the 2025 outlook, the MAN President said the ongoing economic reforms, including the proposed tax reforms and stabilisation of critical macro-economic indicators, would shape the future of the manufacturing sector.
He encouraged the Federal Government to eliminate barriers hindering economic growth and to accelerate progress on the reforms to achieve the desired results.
“I am truly inspired by the resilience demonstrated by our business community, especially in the face of the numerous challenges that we encountered in recent years.
“I am confident that, together, we can overcome these challenges and build a more prosperous and sustainable future for our country.
“Let us harness our collective strength and expertise as organised private sector to drive economic growth, create jobs, and improve quality of life for all Nigerians, as the government can no longer be left to tackle these challenges alone,” he said.
Nigeria to gain from rebasing of the economy – Taiwo Oyedele
Also speaking at the event, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, said Nigeria’s economy will gain from the rebasing of the Nigerian economy, starting with the Gross Domestic Product (GDP) calculation.
- Nairametrics reported that the National Bureau of Statistics (NBS) said it will rebase Nigeria’s GDP in 2025, using 2019 as the new base year instead of 2010.
- Oyedele said that in 2025, there will be reforms on budget processing, medium-term expenditure framework, and fiscal strategy paper to support economic rebasing.
- Oyedele said that rebasing the economy would make an impact on the country’s projected tax-to-GDP ratio and measurement of per capita income, and improve investors’ perception of the country.
According to him, rebasing the economy gives signal to investors to have second thoughts about the country and take investment in the country more seriously.
“The Consumer Price Index (CPI) basket will also be rebased to impact inflation, giving a clearer indication of where the country is going.
“On the tax reforms bills, we are engaging with key stakeholders and we believe we are making progress and expect that the bills should be enacted into law by the end of the first quarter of 2025.
“There are significant provisions in the tax reform bills that hold possibilities for the country from business reforms to cost and tax reduction while ensuring that small businesses can thrive without excess burdens.
“I am positive about 2025 and what it holds for businesses, families, and individuals, and by complementing the other sound fiscal policies by the Federal Government, I think it can only get better,” he said.
Oyedele reiterated President Bola Tinubu’s commitment to reducing Nigeria’s inflation rate in 2015. He also noted that the foreign exchange rate would stabilise since factors that pushed up costs might no longer be there.
He assured that there would be more inflow of foreign exchange to the federation account.
What you should know
- Rebasing means to base GDP against a benchmark of prices from a particular year over a duration of years to determine the GDP for current periods. The constant prices previously based on 2010 will now be based on 2019.
- The Confidence Index of the Chief Executive Officer (CEO) of the Manufacturers Association of Nigeria (MAN) declined in Q2 2024, due to electricity tariff hikes and high interest rates.
