The Manufacturing Association of Nigeria has expressed concerns about the challenging outlook for Nigeria’s manufacturing sector in the fourth quarter of 2024. The Director General of MAN highlighted various issues affecting the sector, including rising production costs, reduced sales, high diesel prices, and electricity tariff hikes. These factors have contributed to a decrease in the sector’s contribution to real GDP growth compared to previous quarters.
The recent increase in interest rates and the volatility of the exchange rate have further hampered the growth of the manufacturing sector. The Director General emphasized the need for policy stability and a reduction in supply and price volatility to improve the sector’s performance.
Energy costs and foreign exchange market volatility were identified as significant obstacles by industry experts. The depreciation of the naira has led to higher production costs due to reliance on imported raw materials and machinery. The recent petrol price hike has also raised concerns among various groups, calling for government intervention to stabilize the forex market.
Efforts such as sourcing crude oil in naira and implementing economic stabilization plans were seen as potential solutions to alleviate the pressure on manufacturers. The hope is that these measures, if implemented effectively, could help improve the manufacturing sector’s outlook in the coming months.