MAN laments real sector’s decline in performance, high inflation, firms’ exit

The Manufacturers Association of Nigeria (MAN) has decried the decline in the growth of the manufacturing sector as revealed in the third quarter GDP report of the National Bureau of Statistics (NBS).

It said that the Nigerian government had been characterised by its passive response towards the countless challenges battling the real sector.

Director-General of MAN, Segun Ajayi-Kadir, who stated this, yesterday, said this is a clear indication of the detrimental impact of the prevailing macroeconomic policies of the government.

This, he said, was the significant drop in nominal growth from 36.59 per cent to 32.97 per cent year-on-year, driven by high inflationary pressure and the exit of major multinational manufacturing firms.

He lamented that inflation had been a significant factor in undermining the growth of the manufacturing sector, as the sector has been particularly vulnerable to the unstable macroeconomic environment, exacerbated by recent economic reforms.

“In general, the report revealed that the growth of the manufacturing sector grew slowly year-on-year at 0.92 per cent and decelerated quarter-on-quarter by 0.35 per cent. Similarly, its contribution to GDP in Q3 was 8.21 per cent, lower than the 8.42 per cent recorded in Q3 2023 and lower than the 8.46 per cent recorded in Q2 2024.

“Undoubtedly, this underperformance underscores the harsh effect of hostile economic policies, which have largely constrained the country’s goal of rapid industrialisation and have left the economy struggling for survival,” he said.

The MAN DG said that agriculture plays a crucial role in fuelling the growth of the real sector by ensuring a steady supply of affordable local raw materials.

He, therefore, advocated a review of import duty rates for production inputs, particularly those not locally available, and government should peg the rate at N800, implement measures to streamline Customs procedures, prioritise budgetary allocation for infrastructure development, especially along strategic economic hubs, encourage public-private partnerships for infrastructure development, among others.