The Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, has raised alarm over the mounting challenges confronting Nigeria’s manufacturing sector, calling for urgent reforms in tax regulations and industrial policies to revive the struggling industry.
In a recent interview, Ajayi-Kadir painted a sobering picture of the current state of manufacturing in the country, highlighting issues such as foreign exchange instability, high inflation, poor infrastructure, and unfocused trade and industrial policies as key impediments to growth.
“Like most sectors, manufacturing in Nigeria is facing tough times. We’re not insulated from the broader economic challenges, and this is reflected in the sector’s low contribution of just 9% to 12% of the Gross Domestic Product (GDP),” he said.
Despite these challenges, Ajayi-Kadir emphasized that the sector remains resilient. He noted that Nigeria continues to produce and export a wide range of goods including cement, refined oil, electrical cables, leather, garments, pharmaceuticals, plastics, steel, and paper products.
“There is still a lot of manufacturing going on. Nigerian-made products are some of the safest you can buy, regulated by agencies like NAFDAC and SON. We are exporting to other African countries and even to Europe,” he added, citing successes such as Dangote Industries and other emerging players as examples of manufacturing potential.
Ajayi-Kadir also drew attention to the role of government incentives, particularly the Export Expansion Grant (EEG), which he said has been plagued by disruptions and inefficiencies. He called for its restructuring to enable manufacturers to offset their tax liabilities without limitations.
“The EEG should be refocused and streamlined. It must be made effective so that proceeds can be used to fulfill tax obligations. Additionally, manufacturers should be protected from excessive and arbitrary taxes imposed by various regulatory agencies, especially in states like Lagos,” he said.
He reiterated MAN’s commitment to supporting the over 60 sub-sectors it represents, stressing that with the right support, the manufacturing sector has the potential to drive employment, economic growth, and national development.
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