Nigeria's Digital Payment Issues Hinder Manufacturers' Growth

Nigeria's shift towards digital payments has not benefitted manufacturers, who continue to struggle with foreign exchange access, particularly for cross-border transactions. According to the Manufacturers Association of Nigeria, 49% of forex requests through official channels remained unmet as of Q3 2025.

The Central Bank of Nigeria's Governor, Olayemi Cardoso, acknowledged inefficiencies in the settlement system, which is compounded by high operational costs and remittance fees. The World Bank reports that remittance costs in Sub-Saharan Africa are among the highest globally.

Manufacturers like Femi Adeyemi, who runs a textile business, face severe cash flow issues due to delayed export payments and fluctuating exchange rates. The situation has led to a significant decline in foreign investment, with a reported drop from $1.43 billion in 2024 to $773 million in 2025.

Additionally, 335 manufacturing companies became distressed, and 767 shut down in 2023, resulting in the loss of nearly 19,000 jobs.