Kehinde Fajobi
The Manufacturers Association of Nigeria (MAN) has attributed the sluggish growth of the manufacturing sector in the third quarter of 2024 (Q3’24) to unfavourable government policies.
According to the National Bureau of Statistics (NBS), the manufacturing sector recorded one of the lowest growth rates in Q3’24, with a mere 2.18 percent.
In a statement released on Monday, MAN’s Director General, Segun Ajayi-Kadir, criticised the government for economic measures that have stifled industrial growth, reports Vanguard.
He stated, “Undoubtedly, this underperformance underscores the harsh effect of hostile economic policies which have largely constrained the country’s goal of rapid industrialisation and have left the economy struggling for survival.”
Ajayi-Kadir noted that high interest rates, escalating energy costs, and an unstable exchange rate were major hurdles for manufacturers.
He also criticised the government’s lack of proactive measures in addressing the sector’s challenges.
“This is further evidenced by the significant drop in nominal growth from 36.59 percent to 32.97 percent year-on-year, driven by high inflationary pressure and the exit of major multinational manufacturing companies,” he explained.
Ajayi-Kadir linked the sector’s struggles to inflation and a volatile macroeconomic environment.
He also emphasised the critical role of agriculture in supporting manufacturing by providing affordable raw materials.
However, he lamented that neither the agricultural nor manufacturing sectors ranked among the top five growing sectors in Q3, citing insecurity in farming regions and its impact on agro-allied industries.
He warned that the manufacturing sector’s challenges—multiple taxation, limited credit access, infrastructure deficits, energy insecurity, and an unstable foreign exchange market—pose significant threats to the economy.
“A vibrant manufacturing sector is essential for driving economic growth and prosperity,” Ajayi-Kadir stressed.
He called on the government to implement decisive measures to address these issues and unlock the sector’s full potential.