The Director-General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, has warned that manufacturers cannot continue operating under difficult conditions indefinitely, saying prolonged pressure could push businesses from resilience into serious operational difficulties.
Ajayi-Kadir made the remarks during an engagement with journalists on the state of Nigeria’s manufacturing sector, where he discussed foreign exchange pressures, access to credit, weak consumer purchasing power and the need for stronger support for locally produced goods.
Exchange rate continues to raise production costs
The MAN DG identified the exchange rate as one of the major challenges facing manufacturers.
He said the naira-dollar rate, which he put at between ₦1,400 and ₦1,500 to the dollar, continues to influence production expenses and the prices of manufactured goods.
According to him, reducing pressure on the foreign exchange market would require stronger domestic productivity and less dependence on imported products.
He argued that an economy that relies heavily on imports would continue to face pressure on its currency unless local production improves.
Manufacturers struggling to access credit
Ajayi-Kadir also raised concerns over the ability of manufacturers to obtain affordable financing.
He said banks often consider lending to government safer than extending credit to manufacturers, leaving businesses competing for a smaller share of available funds.
He linked the situation partly to the Cash Reserve Ratio (CRR), arguing that higher reserve requirements could reduce the amount banks have available to lend to businesses.
‘Resilience is not a virtue’
The MAN chief said it was wrong to celebrate manufacturers merely for surviving difficult economic conditions.
He argued that businesses should operate in an environment that allows them to expand and remain profitable rather than continually struggling to stay afloat.
Ajayi-Kadir warned that prolonged operating pressures could eventually push companies beyond resilience and towards incapacitation.
Calls for Nigerians to buy locally made goods
The MAN DG also urged Nigerians and government institutions to increase their patronage of locally manufactured products.
He argued that excessive reliance on imported goods sends jobs and economic opportunities to other countries.
He also raised concerns about the accumulation of unplanned inventory, saying unsold products tie down manufacturers’ capital and create additional storage and regulatory costs.
According to him, manufacturers may eventually have to destroy products that remain in warehouses beyond their shelf life, turning potential revenue into additional expenditure.
MAN backs stronger Nigeria First implementation
Ajayi-Kadir called for more effective implementation of the Federal Government’s Nigeria First policy, which prioritizes locally produced goods and services in public procurement where suitable domestic alternatives are available.
He said stronger government patronage of Nigerian-made products could help manufacturers increase production, preserve jobs and strengthen domestic supply chains.
He also argued that Nigeria should prioritize domestic refining, saying it made little economic sense for the country to export crude oil and subsequently import refined petroleum products.
NAFDAC regulation also criticized
The MAN DG further criticized the approach to regulating sachet alcoholic beverages, arguing that removing legitimate products from the market could push consumers towards unregulated alternatives.
He said regulators should focus on enforcing existing standards rather than taking actions that could result in factory closures and job losses.
Ajayi-Kadir maintained that the wider challenge facing manufacturers requires coordinated action on financing, exchange rates, consumer purchasing power, local patronage and regulation.
He said creating a more supportive operating environment would enable Nigerian manufacturers to move beyond merely surviving difficult conditions and focus on sustainable growth.
