Despite the challenges which have continued to retard the growth of the nation’s manufacturing sector, the Manufacturers Association of Nigeria (MAN) has expressed the optimism that the sector would experience a 3.1 per cent growth, from the 1.6 per cent recorded in Q2 of 2025; and also up its contribution to 10.2 per cent, from 7.81 per cent, recorded same period.
The association, in its recently-released MCCI Report, also called on the federal government to approve the N1 trillion stabilisation fund for manufacturers, and direct the CBN to increase the capital base of the Bank of Industry (BOI) , to enable it to meet the credit demand of industries.
The study hinges its optimism of a better fortune for the sector in the coming year on the effective execution of incentives under the new tax laws, the operationalisation of the National Single Window Project, and purposeful implementation of the Nigeria Industrial Policy.
The Report, which reflected the views of 500 member- Chief Executives, about the sector, also projected a further appreciation of the Naira to N1,300-N1,400/$, a development, it stated, would be driven by global oil price recovery, stronger external reserves, robust export earnings, increased foreign investments and remittance inflows.
Another soothing news from the study is its prediction of a deceleration of headline inflation, at 18.02 per cent in September, 2025, to 14 per cent in 2026.
‘The CBN is anticipated to implement further cuts in the benchmark interest rate to about 23 per cent , in line with the disinflationary trend and to stimulate credit expansion and output growth,’ it stated.
The study noted that further reduction in lending rates and completion of the bank recapitalisation exercise would enhance credit availability to manufacturers, strengthen investment and capacity utilisation.
It however identified the decline in oil productions, as witnessed in August and September, this year, as one of the biggest threats to the hard-won stabilisation in the economy.
While commending the apex bank’s recent benchmark interest rate cut, describing it as signalling a ‘welcome policy shift’, the study would however want a further reduction in the benchmark interest rate by at least 200-300 basis points, over the next two quarters, to make credit affordable for manufacturers.
‘High average lending rates of 36.6 per cent, reduction in credit access to N7.72 Trillion and rising unsold inventories of N1.04 trillion continue to limit performance,’ the study noted.
Speaking on2025 MAN Think-tank and MAN CEO’s Confidence Index (MCCI), the association’s President, Otunba Francis Meshioye, described it as a strategic platform, designed to x-ray manufacturing performance, identify binding constraints and co-creating a robust roadmap that will positively influence the sector’s narratives in the years ahead.