The Manufacturers Association of Nigeria (MAN) has raised alarm over policy measures it says are increasing operating costs and weakening capacity utilization across the manufacturing sector, calling for urgent engagement with government to prevent job losses and plant closures.
Key points from MAN’s press conference in Lagos
MAN President Otunba Francis Meshioye said the association had received widespread reports of pressure on member firms attributed to higher energy tariffs, foreign exchange volatility, and excise duty adjustments across select product categories.
“We are not asking for favors; we are asking for fairness. Manufacturers cannot thrive when energy tariffs rise sharply, when forex scarcity limits access to raw materials, and when excise rules penalize local producers more than foreign competitors,” Meshioye said.
“The unintended consequences of recent policies are clear in our members’ books—rising costs, falling margins, and curtailed production schedules,” he added.
MAN said it had formally communicated its concerns in position documents to relevant ministries, departments, and agencies, and sought structured consultations on energy pricing, tax administration, and trade policy.
“We have shared evidence‑based positions with regulators and the fiscal authorities. Our goal is stability and predictability so factories can plan, invest, and expand,” Meshioye said.
Data points and capacity trends reported by MAN
The association said member feedback indicates a decline in capacity utilization at numerous plants and increased idle hours due to power supply constraints and input cost spikes.
“We are seeing clusters of firms operating below optimal thresholds, with some lines running one shift where they used to run three,” said MAN Director‑General Segun Ajayi‑Kadir.
“Manufacturing is about jobs, exports, and national competitiveness. If policies continue to suffocate industry, Nigeria risks becoming a market rather than a maker—import‑dependent and vulnerable,” he said.
Several operators reported revising procurement cycles and adjusting product portfolios to manage cost pressures.
“We have had to reduce SKUs and prioritize high‑volume lines to keep the plant viable,” said a beverage manufacturer spokesperson.
“Our diesel bills have doubled year‑on‑year; even with captive power, we face difficult tradeoffs between output and affordability,” the spokesperson added.
Stakeholder accounts from industrial corridors
Plant managers and small manufacturers in Ogun, Lagos, and Kano industrial hubs described operational adjustments to cope with the current environment.
“We used to run three shifts. Now we barely manage one. Diesel costs alone have doubled, and workers are worried,” a factory owner in Ogun State said.
“Foreign exchange delays have pushed lead times from six weeks to twelve, and we’re paying more for every shipment,” a plastics producer in Lagos said.
“We can’t pass all the costs to consumers; demand is elastic and the market is price‑sensitive,” noted a textile operator in Kano.
MAN’s position documents and requests to government
MAN reiterated requests for measures to stabilize costs and strengthen local production:
- Energy pricing and reliability:“A phased approach to tariff adjustments, plus targeted support for productive users, will safeguard output and jobs,” MAN said.
- Foreign exchange access for inputs:“Priority FX windows for critical raw materials, spares, and machinery will reduce bottlenecks and restore planning certainty,” the association stated.
- Tax and excise policy calibration:“Excise frameworks should avoid negative effective protection for local producers. We seek balanced regimes that encourage formalization and investment,” MAN said.
- Trade facilitation and anti‑dumping enforcement:“Stronger border controls and fair competition measures are necessary to prevent dumping that undermines domestic factories,” the association noted.
Resolutions from MAN’s 2025 Annual General Meeting
Delegates at the 2025 MAN AGM adopted resolutions aimed at de‑risking production and supporting industrial growth.
“We cannot industrialize on paper alone. We need power, infrastructure, and policies that encourage production, not penalize it,” the AGM resolution stated.
“We will deepen engagement with policymakers, utilities, and financing institutions to unlock bottlenecks and protect the productive base,” MAN said.
Government and regulator responses
Officials familiar with ongoing consultations acknowledged the importance of industry input.
“We value MAN’s data and feedback. The objective is to balance fiscal sustainability with growth,” a finance ministry official said.
“Energy sector reforms are proceeding, but we are exploring mechanisms to cushion productive users,” an official in the power sector said.
Sector analysts and market watchers
Analysts said policy sequencing and stakeholder dialogue would be critical to avoiding de‑industrialization risks.
“Well‑intentioned reforms can trigger short‑term pain. Mitigating measures for manufacturers are essential to prevent output declines,” a policy analyst said.
“Nigeria’s AfCFTA ambitions depend on competitive local production; otherwise, the country imports and loses value addition,” the analyst added.
Workforce implications and community impact
Union representatives and community leaders said factory slowdowns can ripple through local economies.
“When shifts are cut, incomes fall, and local businesses feel it,” a labor representative said.
“Industrial estates anchor livelihoods; keeping plants running protects communities,” a community leader near an Ogun industrial park said.
Next steps and monitoring
MAN said it will continue to submit approved reports and engage through press releases, policy briefs, and stakeholder forums.
“We will track capacity utilization, price pressures, and employment indicators, and share updates with government and the public,” MAN noted.
“Our objective is clear: keep factories open, protect jobs, and grow Nigeria’s industrial base,” Meshioye said.
Image caption
MAN President Francis Meshioye addresses stakeholders at the 2025 Annual General Meeting in Lagos, warning that policy inconsistencies threaten Nigeria’s manufacturing future.
