Francis Meshioye, the President of the Manufacturers Association of Nigeria (MAN), warns of the potential demise of the manufacturing sector due to the soaring production costs.
Meshioye shared this concern during a media briefing leading up to MAN’s 51st Annual General Meeting (AGM). The AGM, scheduled from October 17 to 19 in Lagos, carries the theme, “Setting the Agenda for Competitive Manufacturing Under the African Continental Free Trade Area Agreement (AfCFTA): Nigeria’s Next Steps.”
“Skyrocketing manufacturing costs result from the shortage of essential manufacturing inputs. This reduces profitability and threatens this pivotal economic sector,” Meshioye stated.
More concerning, according to Meshioye, is that the sector pivotal for job creation, productivity, and economic growth faces myriad challenges, thus limiting its GDP contribution. He listed power outages, insecurity, lacking infrastructure, foreign exchange shortages, and naira depreciation as major issues adversely affecting the sector.
MAN suggests that to ensure manufacturers remain competitive, the government must prioritize addressing these challenges. “We must aim to attract foreign investments to reduce the forex demand and ensure adequate forex inflow, which Nigeria desperately needs,” Meshioye added.
Reflecting on the growth trajectory of Nigeria and Africa’s manufacturing sectors, Meshioye highlighted the AGM’s theme’s significance. He emphasized the manufacturing sector’s role in realizing AfCFTA and the African economy’s integration, as outlined in Agenda 2063.
Meshioye proudly announced Olusegun Aganga, Nigeria’s former finance minister and chairman of the economic management team, as the guest speaker for the third Adeola Odutola annual lecture. “Aganga played a pivotal role in positioning Nigeria as Africa’s prime investment destination. To strengthen our manufacturing sector, we must tirelessly work towards a sector that ensures economic sustainability and elevates the living standards of our citizens,” he affirmed.
