The Manufacturers Association of Nigeria (MAN) has renewed its call for coordinated structural reforms to tackle inflation, boost productivity and strengthen the competitiveness of the country’s manufacturing sector, warning that recent inflation figures do not yet reflect a meaningful easing of economic pressures on businesses.
The association’s position follows the latest data released by the National Bureau of Statistics, which showed that headline inflation declined marginally to 15.91 per cent in June 2026 from 15.93 per cent recorded in May. Despite the slight improvement, food prices continued to rise on a month-on-month basis, driven by increases in the cost of staple items including tomatoes, fresh pepper, crayfish, beef, garri and yams.
Speaking in the April–June edition of MAN News, the Director-General of MAN, Segun Ajayi-Kadir, said the resurgence of inflationary pressures during the second quarter underscored the fragile nature of Nigeria’s economic recovery.
According to him, rising food prices, high energy costs, transportation expenses and foreign exchange pressures continue to increase production costs for manufacturers while eroding consumers’ purchasing power.
“MAN has consistently maintained that addressing inflation requires coordinated structural reforms that improve productivity, strengthen infrastructure, enhance security in agricultural and industrial communities, and stabilise the foreign exchange market,” Ajayi-Kadir stated.
He noted that although business and government activities picked up during the second quarter after a relatively slow start to the year, economic performance was affected by insecurity in parts of the country and the impact of tensions in the Middle East arising from the conflict involving the United States and Iran.
Ajayi-Kadir reaffirmed the association’s commitment to advocating policies that would improve industrial competitiveness and support economic growth despite prevailing challenges.
“As we enter the second half of the year, our priorities remain firmly focused on advancing policies that improve competitiveness, encourage investment, expand local production, deepen exports, and position Nigeria as Africa’s industrial hub and the preferred manufacturing destination,” he said.
The MAN Director-General also called for the recapitalisation of the Bank of Industry, the creation of additional concessionary financing windows for manufacturers, lower import costs for industrial machinery and critical raw materials, and access to long-term development finance to support industrial expansion.
He expressed concern over the continued decline in credit available to manufacturers, warning that industrial growth would remain constrained if businesses could not access affordable financing.
On tax reforms, Ajayi-Kadir reiterated the association’s support for efforts aimed at modernising tax administration and improving revenue generation but opposed the retroactive implementation of the 2025 Nigeria Tax Laws.
“Our position remains unchanged. We support reforms that modernise tax administration, improve revenue mobilisation, and strengthen fiscal sustainability. At the same time, successful reform depends on transparent implementation, predictable policies, and continuous stakeholder engagement,” he said.
The MAN DG further urged the Federal Government to resolve outstanding foreign exchange forward obligations owed to manufacturers, describing the issue as a breach of valid contractual agreements that has weakened the financial position of affected companies.
He added that the association had intensified advocacy for increased local sourcing of raw materials through collaboration with the Raw Materials Research and Development Council and the Nigeria Customs Service, with the aim of deepening backward integration and reducing dependence on imported industrial inputs.
Ajayi-Kadir expressed optimism that stronger collaboration between government and the private sector would help sustain ongoing reforms and accelerate Nigeria’s industrial transformation.
