The Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, has painted a sobering picture of the country’s industrial sector, citing foreign exchange volatility, infrastructure deficits, and inconsistent policies as major constraints limiting manufacturing growth.
In an exclusive interview, Ajayi-Kadir revealed that Nigeria’s manufacturing sector currently contributes a meager 9 per cent to 12 per cent to GDP due to systemic challenges. “Like most other sectors, the manufacturing sector in Nigeria is going through quite a difficult time,” he stated. “We are affected by issues like foreign exchange, inflation, lack of production-supporting infrastructure, and industrial policies not tailored for vibrant manufacturing.”
The MAN DG highlighted how global economic headwinds compound local problems: “The global economy itself is suffering backlash in terms of geopolitics and economic nationalism. All these have imposed pressure on manufacturing, limiting employment generation.”
Despite these hurdles, Ajayi-Kadir noted resilient production activities: “There are quite a number of things we manufacture in Nigeria – we export to Africa and Europe. The Dangote revolution exemplifies this, alongside thriving cement, plastics, cable, leather, garment, pharmaceutical, steel, and pulp/paper industries.”
He emphasized Nigeria’s 10 manufacturing sectors and 60 subsectors, asserting: “The safest products to buy in Nigeria are locally made – they’re strictly regulated by NAFDAC, SON and other agencies.”
On fiscal policy, the MAN boss called for urgent reforms: “The EEG (Export Expansion Grant) needs refocusing as it suffers disruptive implementation. Proceeds should cover tax obligations without limitations.” He criticized Lagos State’s multiple taxation: “Regulatory agencies continue imposing untoward taxes on manufacturers.”
The DG’s revelations come as industries grapple with FX scarcity, with manufacturers spending N633.88 billion on alternative energy in 2022 alone due to unreliable grid power. While celebrating local production successes, his comments underscore the urgent need for policy stability and infrastructure upgrades to unlock manufacturing’s full potential.
