The nation’s infrastructural deficits still remain a challenge to the real sector of the economy, as over  N676.6billion  was said to have been spent by operators in the nation’s manufacturing sector on alternate energy in the first half of 2025, due to erratic power supply in the country.

 

The Association’s President, Otunba Francis Meshioye, disclosed this at the 10th  Edition of the association’s  Media Personality Award   and 2026 Presidential Media Luncheon, held, recently, in Lagos.

 

According to him, the nation’s manufacturing grappled with familiar macroeconomic constraints, including persistent infrastructural deficits, multiple taxation, onerous regulatory requirements, weak policy coordination, elevated energy costs, and other deep-seated structural bottlenecks, in Year 2026.

 

 

The MAN boss believed  the development  underscored the fragility of the operating environment the  operators in the sector had continued to grapple with.

 

“Manufacturers entered the year with cautious optimism and a renewed commitment to proactive advocacy on issues affecting members’ operations and competitiveness. Nevertheless, prevailing macroeconomic pressures weighed heavily on business sentiment,” he stated.

 

Otunba Meshioye added that the  Manufacturers CEOs’ Confidence Index, which tracks manufacturers’ expectations and operating impulse, declined to 53.2% in Q1 2025 from 56.0% in Q4 2024, before further easing to 50.3 % in Q2 and only marginally recovering to 50.7% in Q3.

 

He described the  ‘subdued confidence’ trajectory  as reflecting  the unfriendly macroeconomic environment during the period.

 

On inflation, the MAN boss believed the persistent double-digit inflation continued to erode consumers’ purchasing power, thereby dampening demand for manufactured goods.

 

 

He however argued that despite  the headwinds, the manufacturing sector continued to demonstrate notable resilience, capacity utilisation improving  to 61.3%, up from 57.6% in the second half of 2024.

 

On  the suspension of the 4% Free-On-Board (FOB) charge by the Nigeria Customs Service, the 15% increase in port charges by the Nigerian Ports Authority, and the discontinued levy by the Financial Reporting Council of Nigeria,  the MAN boss noted that the manufacturers would have faced even greater burdens if the interventions had not taken place.

 

While  expressing  the hope of a positive outlook for Nigeria’s economy in 2026, Otunba Meshioye however canvassed capital expenditure that supports manufacturing in the new year.