MAN Advocates Naira-for-Crude, Tax Reforms for Recovery

The Manufacturers Association of Nigeria (MAN) has called for the implementation of naira-for-crude initiatives and comprehensive tax reforms to support the struggling manufacturing sector. Segun Ajayi Kadir, the Director General of MAN, highlighted that recent government interventions, including withholding tax exemptions and expanded VAT deductions, are crucial for reviving the industry.

The sector has suffered due to economic reforms over the past three years, leading to soaring product costs and reduced capacity utilization, which fell to 61.3% in the first half of 2025. The removal of fuel subsidies in May 2023 caused logistics costs to surge by 300%, while electricity tariffs increased significantly.

Furthermore, the depreciation of the naira has raised the cost of importing raw materials, with costs rising from N3.04 trillion in 2023 to N6.64 trillion in 2024. High-interest rates and inadequate access to foreign exchange continue to constrain the sector, with credit to manufacturers dropping to N6.6 trillion by December 2025.