The Manufacturers Association of Nigeria (MAN) has attributed the sluggish growth of the manufacturing sector in the third quarter of 2024 (Q3’24) to the government’s economic policies.
According to the National Bureau of Statistics (NBS), the manufacturing sector recorded a modest growth rate of 2.18 percent during the period, one of the lowest among all sectors.
In a statement to Vanguard, MAN’s Director General, Segun Ajayi-Kadir, criticized the impact of government policies, stating that the sector’s weak performance was largely due to high interest rates, inflated exchange rates, and rising energy costs.
He said, “This underperformance highlights the harsh effects of hostile economic policies, which have hindered the country’s industrialization goals and left the economy struggling. Unfortunately, the Nigerian government has been slow in responding to the numerous challenges confronting the manufacturing sector.”
Ajayi-Kadir also pointed to a significant decline in nominal growth, from 36.59 percent to 32.97 percent year-on-year, driven by high inflation and the exit of major multinational manufacturing companies. He explained, “Inflation has been a key factor undermining manufacturing growth, as the sector is particularly vulnerable to the unstable macroeconomic environment, worsened by recent economic reforms.”
The MAN DG stressed that a robust manufacturing sector is vital for Nigeria’s economic growth and prosperity. However, he lamented the numerous obstacles the sector faces, including excessive taxation, limited access to credit, an unstable foreign exchange market, infrastructure deficits, and energy insecurity.
Ajayi-Kadir called on the government to take decisive action to address these challenges and unlock the full potential of the manufacturing sector.
