The Manufacturers Association of Nigeria (MAN) is seeking the timely passage of the controversial tax bill and an upgrade of road infrastructure, among other demands from the Federal Government.
The association’s President, Mr Francis Meshioye made the demand in a Press briefing in Lagos on Wednesday.
Nairametrics reported that the Manufacturing sector experienced a difficult 2024 due to several challenges including high inflation, high interest rates, a surge in energy costs, and multiple taxation, among others.
Mr Meshioye explained that the government must help the manufacturing sector to experience growth in the new year.
He said, “For the sector to regain its momentum, efforts to improve productivity and enhance competitiveness must be sustained as this is crucial in helping Nigerian manufacturers navigate the challenges they face.
“There is no gainsaying the fact that manufacturing is pivotal to galvanizing and sustaining the economic growth and development of Nigeria. We seek the government’s alignment with our conviction that a win for the manufacturing sector is a win for the economy and by extension, a better life for the citizenry.”
To achieve a thriving manufacturing sector in 2025, MAN made the following demands from the Federal Government:
- Timely passage of the 4 tax bill before the National Assembly.
- Implementation of the patronage of made-in-Nigeria products policy.
- Taming inflation.
- Ensuring food security and promoting local sourcing of Raw-Materials
- Addressing policy inconsistency
- Upgrading infrastructure (roads and railways)
- Promoting energy security and downward review of electricity tariffs
- Prompt Clearance of backlog of Forex foreword by the CBN
- Ensuring affordable lending rates and increased access to credit
2025 outlook depends on the success of FG’s economic reforms
Mr Meshioye said the association hopes for a more stable economy in 2025, but that would depend mostly on the success of President Bola Tinubu’s economic reforms.
“Nevertheless, 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 said the reforms, if successful, would ease the contraction of the economy and ensure stability.
- The association hopes for a reduction in interest and inflation rates, as promised by the government.
“Only a favorable interest rate environment would help manufacturers access the necessary financing to reinvest in their operations and drive productivity,” he said.
MAN also expressed hope in the effective management of the Electronic Foreign Exchange Matching System (EFEMS) to stabilise the Naira and help it gain value.
AI will be a “game changer” for the manufacturing sector in 2025
The MAN President also disclosed that manufacturers in Nigeria are embracing artificial intelligence to boost productivity and for effective logistics operations.
“The efficient adoption of Artificial Intelligence (AI) 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 utilization, innovative product development, improved inventory system, efficient logistics operations, etc,” he explained.
He stressed that technology is essential to fast-tracking “transformational growth” of various sectors of the Nigerian economy
What you should know
- Nairametrics reported that companies across all sub-sectors of the manufacturing sector recorded approximately N1.4 trillion worth of unsold inventories in 2024.
- This is due mainly to high inflation which reduced the purchasing power of Nigerians. Other challenges faced by manufacturers include high interest rates and high energy costs.
