Nigerian Manufacturers Face Challenges Amid Rising Costs and Weak Demand

Despite renewed optimism in Nigeria's economic outlook, the manufacturing sector is struggling with steep challenges such as inflation, rising costs, foreign exchange instability, and weak consumer demand. The Manufacturers Association of Nigeria expresses cautious confidence, highlighting improvements in power supply and gradual forex stabilization.

However, industrial data suggests that optimism may be premature as capacity utilization remains below pre-pandemic levels. Input costs have surged by 40% in the past year, squeezing profit margins.

Experts emphasize the necessity of targeted interventions in tax policies, credit access, and forex liquidity to support the sector's resilience.