Abeokuta: The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to prioritise the reforms that will revitalise local industries in the country.
The association made the call at the 40th Annual General Meeting of MAN, Ogun State Branch, on Thursday in Abeokuta. The theme of the meeting is: “Financing Manufacturing Concerns: Exploring Alternatives.”
The Chairman of MAN, Ogun branch, Mr George Onafowokan, who expressed deep concern over the decline in the nation’s manufacturing sector, called for urgent reforms to support local industries.
Onafowokan noted that the manufacturing sector’s contribution to Nigeria’s Gross Domestic Product (GDP) declined significantly from 16.04 per cent in the fourth quarter of 2023 to 12.68 per cent by mid-2024.
He attributed the decline to rising inflation, foreign exchange scarcity, high lending rates, and regulatory policies. He said that statistics showed that Nigeria’s overall GDP grew by 3.40 per cent in 2024, driven mainly by the service and industry sectors, which include manufacturing.
Onafowokan also highlighted the industry’s struggles with foreign exchange volatility, inflation, and regulatory burdens. He noted that despite the harsh environment, members continued to operate and make meaningful contributions to the economy.
He listed some of the challenges facing manufacturers in Ogun State as unconstitutional levies by local governments, arbitrary regulatory fines, and harassment by government agencies and security institutions.
“Members have remained steadfast, keeping factories running, paying workers, and contributing to Ogun state’s revenue base and Nigeria’s GDP.
“Despite these challenges, Ogun manufacturers continue to operate and invest in the economy,” he said. The chairman also lamented the rising cost of accessing finance from commercial banks, citing the high monetary policy rate (MPR), which stood at 27.5 per cent as of May 2025.
He explained that the high-interest loan makes repayment burdensome and erodes profit margins. He, however, urged manufacturers who needed loans to explore other avenues where they could access affordable funds for operations and expansion.
He noted that institutions such as the Bank of Industry (BoI), LECON Finance Company, and Agusto & Co. were present to guide such alternatives.
In his remark, the State Governor, Mr Dapo Abiodun, who was represented by the Commissioner for Industry, Trade, and Investment, Mr Adebola Sofela, commended manufacturers for their resilience.
He assured them of the state government’s commitment to improving the business environment through tax harmonisation and infrastructure development.
Also speaking, MAN President, Mr Francis Meshioye, while speaking on the theme, called on the Federal Government to fully implement the Nigeria First Policy.
Meshioye noted that the government must insist that the policy be enforced through the mandatory patronage of locally made products by all arms and levels of government.
“All uniformed agencies should source their vehicles, uniforms, shoes, and other materials from Nigerian companies. Government contractors must be obliged to prioritise local content, and there must be penalties for non-compliance.
“We are actively working with the Minister of State for Industry through the Industrial Revolution Working Group to see through these reforms.
“We must restore confidence to the manufacturing space,” he said.
He also demanded the immediate clearance of the $2.4 billion outstanding foreign exchange forwards owed to manufacturers, lamenting that many companies are “bleeding” due to double interest payments.
“We also urge the Ogun State Government to domesticate the policy and ensure that all Ministries, Departments, and Agencies in the state prioritise made-in-Nigeria goods in procurement and contracting,” he said.