Despite the positive showings of the nation’s economy, in recent times, the Manufacturers Association of Nigeria (MAN) has said such feats are yet to rub off positively on the manufacturing sector in the country, since the ecosystem still struggles under severe and macroeconomic constraints.

 

 

The association, in a report released recently, also decried the decline in the sector’s contribution from the 29.9 percent in 1981, to a paltry 8.2 percent in 2024,  a development it attributed to a number of factors.

 

 

In the report tagged,  “MAN  State of Affairs”,  the association added that other  indication  of such decline was the  sector’s Value Added figure  that fell to $25.36 billon, in 2024, from the $55.9billion  2023 mark,  due to soaring exchange rate, interest rates  and inflation.

 

 

It also cited the sector’s real output growth, which dropped from1.69%  to 1.6% in Q2, 2025, contributing  a modest 7.81%  to GDP, down from 9.62%.

 

 

Further reeling out the statistics, MAN added that about 767 manufacturing companies had shut down as of 2023, while about 18,000 job losses were recorded in the sector in 2024.

 

 

The report also noted that, though lower,  alternative energy cost of N6.76,6billion, and raw  material import of N1.72 Trillion in H1 2025, still  remain heavy burden on operational cost and employment.

 

 

“Also, high average lending  rates of 36.6%, reduction  in credit access to N7.72Trillion and rising unsold inventories  of N1.04 Trillion continue to limit performance,” MAN stated.

 

 

It attributed the decline in the state of the sector to the hostile macroeconomic  environment, extremely high-cost operating environment, characterized by substantial foreign exchange losses, rising cost  of raw materials, escalated cost of borrowing, multiple taxation,  dilapidated infrastructure, high level of insecurity and excessive regulation by government agencies.

 

 

The association,  therefore,  called for urgent policy actions  to cut energy  costs, strengthen FX liquidity and expand affordable credit  access to accelerate  growth.

 

 

It also advocated for specialized  financing mechanisms for manufacturing , including a manufacturers bank, offering long-term concessionary credit to operators in the sector.