In a critical statement, the Manufacturers Association of Nigeria (MAN) has expressed deep concerns about the relentless surge in production costs, which poses a grave threat to the manufacturing sector’s existence.
Francis Meshioye, President of MAN, conveyed this alarming revelation during a press conference held in Lagos in anticipation of the association’s 51st Annual General Meeting (AGM), themed “Setting the Agenda for Competitive Manufacturing Under the AfCFTA: What Nigeria Needs to do.”
Meshioye, in his address to the press, emphasized that the chosen theme reflects a profound assessment of the manufacturing sector’s growth trajectory in Nigeria and across Africa.
He highlighted, “Currently, the cost of manufacturing is on a daily incline due to the scarcity and unavailability of manufacturing inputs, which continue to erode profitability and jeopardize the crucial sector of the economy.”
He further elaborated that the sector, which should ideally foster job creation, productivity, and economic growth, faces a multitude of challenges that consistently hinder its contribution to the Gross Domestic Product (GDP).
Meshioye pointed out that issues such as erratic power supply, security concerns, inadequate infrastructure, foreign exchange shortages, and the depreciation of the national currency, the naira, are prevalent obstacles adversely impacting the sector.
Furthermore, he stressed the need to maximize the opportunities presented by the African Continental Free Trade Area (AfCFTA) to ensure that products manufactured in Nigeria become the preferred choice in terms of quality and pricing.
The upcoming three-day AGM will include an exhibition of Made-in-Nigeria products and feature Olusegun Aganga, Nigeria’s former Minister of Trade and Industry, as a guest lecturer. Meshioye outlined the objective of the event as brainstorming on the theme to propose a policy direction for the new government, underscoring Aganga’s extensive knowledge of the sector and the subject of discussion.