MAN urges government to address macroeconomic challenges

Stanley Ihedigbo

Manufacturers Association of Nigeria (MAN) has expressed grave concerns over the daunting challenges facing the country’s manufacturing sector.

In its latest report, MAN highlighted the severe impact of macroeconomic reforms on manufacturing operations and performance.

According to the report, the sector’s confidence index rose slightly by 0.5 point to 50.7 points in the fourth quarter of 2024, but remained below the 50-point threshold.

The report attributed the moderate improvement to seasonal demand and relative stability in the exchange rate.

However, MAN identified several challenges facing the sector, including exorbitant electricity tariff hikes, high exchange rates, multiple taxation, high interest rates, low credit access, and insecurity.

The association called on the government to address these challenges and create a more conducive business environment.

Specifically, MAN urged the government to suspend the 15% hike in port charges and the 4% FOB levy, pending wider consultation with the Organised Private Sector of Nigeria and the Presidential Fiscal Policy and Tax Reforms Committee.

The association also called for a pause in interest rate hikes and the deployment of moral suasion for commercial banks to prioritize lending to manufacturers at single-digit concessionary interest rates.

MAN warned that the future of the country’s manufacturing sector hangs in the balance unless the government takes urgent action to address the sector’s challenges.