The Manufacturers Association of Nigeria (MAN) has expressed a cautious outlook for the Nigerian manufacturing industry in the first half of 2024.
According to MAN’s “Manufacturing Sector Outlook for 2024,” released by its Director General, Mr. Segun Ajayi-Kadir, the sector may face challenges, with a possibility of recovery in the third quarter.
The association urged the government to recognize manufacturing as a key driver of sustained economic growth and prioritize the sector accordingly.
The outlook indicated that the first half of the year might be difficult, with a potential for recovery in the later part, relying on policy stimulus and a mix of domestic growth-driven and export-focused initiatives.
Ajayi-Kadir highlighted the challenges faced by the sector, including foreign exchange-related issues and high inflation rates, which may persist until mid-year.
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However, there is hope for marginal improvement in manufacturing output in the third quarter as FX and interest rate challenges ease.
The anticipated recovery in the manufacturing sector is expected to be driven by government disbursement of budget capital provisions to various projects, with a preference for locally made products.
Ongoing infrastructure concessions, such as seaports, airports, and roads, may also contribute to the improvement of the manufacturing sub-sector.
The association emphasized the importance of government support, including lowering the country’s over-reliance on imported goods, following Executive Order 003, and encouraging local sourcing of raw materials.
Additionally, MAN called for the prioritization of foreign exchange and credit allocation to manufacturers and the implementation of measures to increase liquidity and stability.
MAN advised the Central Bank of Nigeria (CBN) to collaborate with commercial banks to provide long-term, single-digit interest loans to the manufacturing sector, aiming to fast-track the realization of a $1 trillion economy.
The association’s recommendations aimed at addressing challenges and promoting the growth of the manufacturing industry in Nigeria.
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