LAGOS, NIGERIA — The Manufacturers Association of Nigeria has called on the Federal Government to release the N1 trillion Manufacturing Stabilisation Fund to support local producers, warning that the sector is buckling under the weight of multiple challenges that threaten its survival.
The Director-General of MAN, Segun Ajayi-Kadir, made the call on Thursday at the BusinessDay Go Local Summit 2.0 held in Lagos, where industry stakeholders gathered to discuss strategies for strengthening local production and reducing dependence on imports. He said the fund, which was announced by the Federal Government in 2025 as part of efforts to cushion the impact of economic reforms on manufacturers, had yet to be disbursed, leaving many producers struggling to stay afloat.
“The Manufacturing Stabilisation Fund was a welcome intervention when it was announced. But announcing a fund is one thing; releasing it is another. Manufacturers are waiting, and many are running out of time. The government must act quickly to release this fund before more businesses collapse,” Ajayi-Kadir stated.
The MAN DG noted that manufacturers were grappling with a combination of challenges, including high energy costs, exchange rate volatility, multiple taxation, poor infrastructure, and limited access to credit. He said these challenges had made it increasingly difficult for local producers to compete with imported goods, leading to the closure of many factories and the loss of jobs.
“Manufacturing is the backbone of any economy. If we allow our manufacturers to die, we will become a nation of importers, and that is a recipe for economic disaster. The government must prioritise the manufacturing sector and provide the support it needs to survive and grow,” he said.
Ajayi-Kadir also called for a review of the current tariff structure, which he said favoured imports over local production. He urged the government to implement policies that would discourage the importation of goods that can be produced locally and provide incentives for manufacturers who use local raw materials.
“We need a deliberate policy framework that promotes local content and protects our manufacturers from unfair competition. The government should also address the issue of multiple taxation, which is killing small and medium-sized manufacturers,” he said.
The MAN DG also stressed the need for investment in infrastructure, particularly power and transportation, noting that manufacturers spend a significant portion of their operational costs on self-generated electricity and logistics. He said the high cost of doing business in Nigeria was driving away foreign investors and making local producers uncompetitive.
“Infrastructure is critical to manufacturing. No manufacturer can thrive in an environment where he has to generate his own electricity and build his own roads. The government must invest in infrastructure to reduce the cost of doing business and to make our manufacturers more competitive,” Ajayi-Kadir said.
The call by MAN is coming at a time when the Nigerian economy is facing significant headwinds, with inflation at a record high, the naira depreciating, and consumer purchasing power declining. Many manufacturers have reported declining sales and profits, with some forced to shut down operations or relocate to neighbouring countries.
The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, who was represented at the summit, said the Federal Government was committed to supporting the manufacturing sector and was working to address the challenges identified by MAN. She said the government was reviewing the implementation of the Manufacturing Stabilisation Fund and would ensure that it is disbursed to eligible manufacturers as soon as possible.
“We understand the challenges facing manufacturers, and we are taking steps to address them. The N1 trillion fund is part of our commitment to supporting the sector, and we will ensure that it is released without further delay,” Oduwole said.
She also announced that the government would be launching a new industrial policy aimed at promoting local production, improving competitiveness, and attracting investment into the manufacturing sector. She said the policy would be developed in consultation with stakeholders, including MAN and other industry players.
The BusinessDay Go Local Summit brought together manufacturers, policymakers, and development partners to discuss strategies for promoting local production and reducing Nigeria’s dependence on imports. The summit featured panel discussions, exhibitions, and networking sessions, with participants calling for a renewed focus on industrialisation as a pathway to economic growth and job creation. For MAN and its members, the summit provided another opportunity to press home their demands for urgent government intervention to save the manufacturing sector from collapse.
