George Onafowokan, chairman of the Manufacturers Association of Nigeria (MAN) in Ogun State, has expressed deep concern over the significant losses faced by the manufacturing sector following the government’s 2023 policy to float the naira.
Speaking at the 39th Annual General Meeting of MAN in Ogun State, Onafowokan revealed that 16 major manufacturing firms have collectively lost N792 billion due to the currency’s depreciation.
By early 2024, the naira’s value had dropped to NGN1,900 to $1, intensifying the financial strain on the industry. Onafowokan pointed out that the scarcity of foreign currency has forced manufacturers to turn to the parallel market, where rates have surged to NGN900 to $1, significantly raising the cost of production and straining resources.
The situation has left many manufacturers struggling, with some forced to halt or suspend operations temporarily. According to Onafowokan, the losses in 2023 extended well into 2024, impacting not only large firms but also hitting SMEs hard, adding to the economic pressure on the industry.
Onafowokan further underscored the challenges posed by inadequate infrastructure and rising energy expenses. Key roads in Ogun State, essential for transporting goods, remain in poor condition, leading to frequent accidents and increased logistical costs.
While acknowledging efforts by the state government to improve infrastructure, he urged swifter action to ease the load on manufacturers.
He called for reforms to create a more efficient tax system and proposed a “Buy Made-in-Nigeria” campaign to stimulate local demand, which could provide vital support to the struggling sector and help manufacturers regain stability.
