Manufacturers in Ogun State are showing optimism about the future of the sector after enduring a tough period marked by unsold inventory, high costs, and economic uncertainty, according to George Onafowokan, Chairman of the Manufacturers Association of Nigeria (MAN) in Ogun State.
Onafowokan shared insights with journlists, acknowledging that the unsold inventory of members reached a staggering N350 billion in 2024. The situation was exacerbated by rising costs, foreign exchange scarcity, and deteriorating infrastructure, which severely impacted productivity.
“The 2023-2024 figures were very bad,” Onafowokan said. “Exchange rate losses were very high. There was almost no manufacturer that was not declaring losses between 2023 and 2024. It was a bad year for everybody, which also created a situation of unsold stocks.”
However, he noted that by the mid-first quarter of 2025, there were signs of recovery as the manufacturing sector began to stabilize. New companies are emerging, and older firms are finding their balance after a period of significant losses.
“Going into 2025, everybody has had to take the hit on their losses and either move forward or, unfortunately, we had some who closed shop. But whoever is left has managed to lick their wounds,” he explained.
Onafowokan commended the resilience of manufacturers, emphasizing that the manufacturing sector cannot easily shut down and restart like smaller trading businesses. “Manufacturers are the worst hit because you have trained people for so many years and in a bad situation, you cannot just let them go,” he said.
Despite the challenges, Onafowokan highlighted a reduction in the stockpile of unsold goods as the market began to stabilize. “We have moved away from the one and a half years of a bad situation into a more stable situation as the same market started moving upwards,” he said. He expressed cautious optimism, noting that manufacturers are now making better decisions thanks to improved market conditions.
A major factor behind the recovery has been the increased availability of foreign exchange and greater transparency in the forex market, particularly following the Central Bank of Nigeria’s introduction of the Electronic Foreign Exchange Matching System in December 2024. According to Onafowokan, this initiative has improved market transparency, reducing speculation, and allowing manufacturers to better plan and price their products. “Now, if the rate is N1,537 per dollar, you can get it within a reasonable margin,” he said.
While the outlook has improved, Onafowokan urged the Central Bank of Nigeria (CBN) to continue its efforts in stabilizing the forex market and ensuring that interest rates keep declining. He stressed that sustaining these gains is crucial for manufacturers to take long-term positions, expand operations, and create more job opportunities in the sector.
In summary, while manufacturers faced a challenging 2023-2024 period, the sector is showing signs of recovery thanks to improved forex access, market stability, and new investments. The optimism among manufacturers is tempered with a call for continued support from the CBN to secure long-term growth in the industry.
