Kehinde Fajobi
The Manufacturers Association of Nigeria (MAN) has revealed that ₦3.04 trillion was spent on importing raw materials for industrial production in 2023, emphasising the manufacturing sector’s potential to contribute over 80% of the country’s non-oil exports if fully harnessed.
MAN’s Director General, Segun Ajayi-Kadir, made the disclosure during a Town Hall Meeting between the Minister of State for Industry, Trade and Investment, Senator John Enoh, and members of the Organised Private Sector (OPS).
The meeting aimed to foster discussions on advancing Nigeria’s industrial sector.
Ajayi-Kadir described the manufacturing sector as the backbone of Nigeria’s industrial activities.
“Despite inherent challenges, Nigeria’s industrial value stood at $118.22 billion in 2023, ranked second in Africa, all thanks to a resilient manufacturing sector which accounted for $55.74 billion,” he said.
He highlighted the sector’s ability to generate at least $6.72 billion in foreign exchange annually, adding that manufacturing remains the largest contributor to the country’s industrial sector, with 46.5% of industrial output.
“Clearly, manufacturing is the most vibrant sector of any industrialised economy, considering its cross-cutting linkages with all other sectors. Indeed, no economy has developed without the formidable role of manufacturing,” Ajayi-Kadir stated.
He further pointed out the job-creating potential of manufacturing industries.
“No other job creator is bigger than the manufacturing sector,” he emphasised, citing its labour-intensive nature and capacity to generate numerous direct and indirect jobs.
However, he lamented the numerous challenges faced by the industrial sector, including high inflation, inadequate infrastructure, electricity problems, high credit costs, naira devaluation, foreign exchange shortages, and multiple taxation.
Ajayi-Kadir called for targeted reforms to unleash the sector’s full potential, noting that addressing these issues could unlock unprecedented economic growth and drive Nigeria’s industrialisation.