By Mary Onyoa
The Manufacturers Association of Nigeria (MAN) has warned that local industries are now grappling with a dangerous mix of surging production costs and weakening consumer demand, a combination that could derail the sector’s projected 3.1 per cent growth in 2026. The association cautioned that the mounting pressure may push many manufacturers to the edge if urgent measures are not taken.
According to MAN Director General, Segun Ajayi-Kadir, the situation is being worsened by escalating geopolitical tensions involving the United States, Israel, and Iran, which continue to disrupt global supply chains and inflate the cost of critical industrial inputs.
The group highlighted that Nigerian manufacturers are already facing rising expenses on raw materials, energy, and logistics, while demand remains fragile due to inflationary pressures. This dual shock, MAN noted, is squeezing profit margins and weakening the competitiveness of locally produced goods both at home and in export markets.
Particularly vulnerable is the chemical and pharmaceutical sector, which relies heavily on imported inputs such as Active Pharmaceutical Ingredients (APIs). MAN warned that volatility in global petrochemical prices could significantly increase production costs, given that the sector accounts for a substantial share of Nigeria’s manufactured exports.
The association urged the Federal Government to act swiftly by strengthening local production capacity, stabilising the naira, and reducing dependence on imports, warning that failure to act could expose the manufacturing sector to deeper shocks in an increasingly unstable global economy.
With additional reports from the Vanguard