Yemisi Izuora
The Manufacturers Association of Nigeria (MAN) has cautioned the Central Bank of Nigeria (CBN) to cautiously implement interest rate policy as expectations from the Association is easing of interest rate in 2025.
President of the Association, Otunba Francis Meshioye, while speaking at the 2025 edition of the MAN Media Personality Of The Year Award/Presidential Media Luncheon on Wednesday in Lagos, notes that Nigeria’s overall economic growth is projected to be around 4 per cent in 2025, which is a modest recovery compared to previous years but still lower than the average growth rate for sub-Saharan Africa.
Meshioye, also said the Association expect that interest rate will begin to ease, as its continued hike by the CBN has failed to curb inflation and has instead stifled investment and business expansion, explaining that “Only a favorable interest rate environment would help manufacturers access the necessary financing to reinvest in their operations and drive productivity.”
Regarding the exchange rate, he said the Naira is predicted to hover between ₦1500 and ₦1650 to 1 dollar in the first quarter of 2025.
This projection assumes effective management of the Electronic Foreign Exchange Matching System (EFEMS) introduced by the Central Bank of Nigeria (CBN) in November 2024, which, if properly implemented, could help stabilize the exchange rate.
Nevertheless, the outlook for the manufacturing sector in 2025 largely depends on the success of ongoing economic reforms, which include: the implementation of the proposed tax reforms, stabilization of critical macroeconomic indicators, and targeted investments in infrastructure and technology.
Considering the series of ongoing fiscal and monetary reforms of the present administration, he said the contraction of economy is expected to ease and experience some growth this year with stability in the exchange rate regime in 2025.
Similarly, the efficient adoption Artificial Intelligence (AI) will be a game changer for the manufacturing sector in 2025 and the nearest future. This is expected to help in engendering enhanced production and productivity, improved capacity utilization, innovative product development, improved inventory system, efficient logistics operations etc.
It is projected that technology adoption through research and development will fast-track the emergence of the much-awaited transformational growth of the real sector of the economy. And as manufacturers, we are gearing up and ready to embark on this interesting journey on the path of growth.
For the sector to regain its momentum, Meshioye said efforts to improve productivity and enhance competitiveness must be sustained as this is crucial in helping Nigerian manufacturers navigate the challenges they face.
There is no gainsaying the fact that manufacturing is pivotal to galvanizing and sustaining the economic growth and development of Nigeria. We seek the government’s alignment with our conviction that a win for the manufacturing sector is a win for the economy and by extension, a better life for the citizenry.
The MAN further recommends timely passage of the 4 tax Bill before the National Assembly, implementation of the patronage of made-in-Nigeria products policy, taming inflation and ensuring food security and promoting local sourcing of Raw-Materials.
Other recommendations include eliminating policy inconsistency, upgrading infrastructure (roads and railways) promoting energy security and downward review of electricity tariff, Prompt Clearance of backlog of Forex foreword by the CBN and ensuring affordable lending rate and increased access to credit
On the Awards and winners, he congratulated every one for contesting very keenly in the competition to determine who emerges as the Association’s Media personality of the year.
“I also want to seize this opportunity to appreciate the independent review committee for always churning out excellent results in their assessment of the entries.
“It gives me great pleasure to announce the upward review of the cash gift for the winners of each category. We are sure to continue to improve in this regard, as we inch towards some measure of recovery in the economic situation of our country.”