MAN urges urgent action on electricity, credit and naira stability, noting limited relief despite new industrial policies

The Manufacturers Association of Nigeria (MAN) has stated that major economic reforms introduced by President Bola Tinubu’s administration have not yet translated into lower production costs or stable conditions for manufacturers in Lagos and across the country. The association made this known on Saturday, highlighting ongoing challenges with energy supply, high borrowing costs and persistent foreign exchange pressures three years into the current government.

Despite a raft of interventions, including a ₦200 billion Presidential Intervention Fund for industry and the unveiling of a ten-year Nigeria Industrial Policy aimed at boosting manufacturing’s share of GDP by 2030, manufacturers say the benefits are yet to be felt on factory floors. MAN Director General Segun Ajayi-Kadir welcomed initiatives such as withholding tax exemptions, reduced company income tax rates, and expanded VAT deductibility under the 2025 Tax Reform Act. He also acknowledged the local value addition legislation and Naira-for-Crude policy which have provided some support for downstream petrochemical firms.

However, Ajayi-Kadir noted that widespread depreciation of the naira since forex liberalisation has sharply increased the cost of importing machinery, raw materials and other critical inputs. “Margins are being squeezed and prices are rising across industries,” he said. Manufacturers also face surging energy bills due to continued grid instability—despite several tariff hikes—and many companies remain reliant on diesel and gas generators that further push up operating expenses.

Access to credit has tightened as the Central Bank repeatedly raised interest rates in response to inflationary pressures. Many firms considering expansion now find borrowing costs prohibitive. While MAN described recent reforms as necessary groundwork for industrial recovery, Ajayi-Kadir said: “Stabilisation and real sector growth are not the same destination. We need to see promised improvements in power supply, procurement enforcement, credit access and local content before these reforms can deliver real industrial growth.”

As Tinubu’s administration enters its fourth year, manufacturers are calling on government to move beyond policy announcements to address practical obstacles in energy supply, financing and implementation of local content rules. MAN maintained that only when these issues are resolved will the intended benefits of recent reforms materialise for Nigeria’s manufacturing sector.

Source: https://www.pulse.ng/story/man-says-tinubu-reforms-not-yet-helping-manufacturers-2026061512204059465