Manufacturers in Nigeria have urged the government to address multiple taxation, rising energy costs, and persistent inflation, warning that the challenges are threatening the survival and competitiveness of industries across the country.
The concerns were raised at the 41st Annual General Meeting (AGM) of the Manufacturers Association of Nigeria (MAN), Ogun State Branch, held in Abeokuta under the theme: “Building a Resilient Manufacturing Sector: Surmounting the Challenges of Fiscal and Regulatory Policies and Tariffs.”
Industry leaders said persistent inflation, exchange rate volatility, high electricity tariffs, rising interest rates, and overlapping taxes have sharply increased production costs, weakened consumer purchasing power, and reduced the competitiveness of locally manufactured products.
The outgoing Chairman of MAN, Ogun State Branch, George Onafowakan, said many manufacturers now rely on self-generated electricity because of the unreliable public power supply, significantly increasing operational costs.
He stated that high borrowing costs, rising logistics expenses, and limited access to foreign exchange continue to constrain investment and industrial expansion.
Onafowakan also warned that additional regulatory charges, including environmental compliance fees, water extraction levies, and recycling licence fees, could discourage investment and put thousands of jobs at risk if they are not properly harmonised.
Responding, the Ogun State Commissioner for Industry, Trade and Investment, Adebola Sofela, who represented Governor Dapo Abiodun, acknowledged the challenges confronting manufacturers and announced that the state government would harmonise taxes and levies before the end of the current administration.
He said a committee had been established to review sub-national taxes, while consultations with local government authorities would be strengthened to eliminate overlapping levies and improve the ease of doing business.
Sofela added that the government would also review concerns over environmental regulations while maintaining standards that promote sustainable industrial development.
At the federal level, the Director of Technical Services at the Ministry of Finance, Basheer Abdulkadir, said the Federal Government was implementing fiscal and trade reforms aimed at reducing the cost of doing business, simplifying tax administration and creating a more predictable investment climate.
He noted that the manufacturing sector contributed about eight per cent to Nigeria’s Gross Domestic Product (GDP) and recorded a growth rate of 3.29 per cent in the first quarter of 2026 despite prevailing economic challenges.
Abdulkadir explained that reforms such as the Nigeria Tax Act 2025 and the National Single Window Project were expected to reduce cargo clearance time, lower logistics costs and strengthen Nigeria’s competitiveness under the African Continental Free Trade Area (AfCFTA).
The President of MAN, Francis Meshioye, said that although recent economic reforms were designed to stabilise the economy, they had also increased production costs for manufacturers.
He called for predictable fiscal policies, affordable electricity, improved infrastructure, access to low-interest financing and stronger protection against unfair imports to support industrial growth, boost exports and create more jobs.
Despite the challenges, manufacturers reaffirmed their commitment to expanding local sourcing of raw materials, investing in renewable energy and adopting modern technologies. They, however, stressed that sustained government policy support remains essential to building a resilient manufacturing sector, driving economic growth and enhancing Nigeria’s industrial competitiveness.
During the private session of the AGM, the Managing Director of Harvestfield Industries Limited, Martins Awofisayo, was elected Chairman of the Manufacturers Association of Nigeria, Ogun State Branch, succeeding George Onafowakan at the end of his tenure.
