The Manufacturers Association of Nigeria (MAN) has renewed its appeal for comprehensive structural reforms aimed at reducing inflationary pressures, improving industrial productivity and strengthening the competitiveness of Nigeria’s manufacturing sector as the country enters the second half of 2026.
The association said the reforms had become necessary amid persistent economic challenges, including rising production costs, food price pressures, energy expenses, exchange rate volatility and disruptions linked to global geopolitical tensions, particularly the conflict in the Middle East.
The call came as the latest data from the National Bureau of Statistics (NBS) showed that Nigeria’s headline inflation rate eased slightly to 15.91 per cent in June 2026 from 15.93 per cent recorded in May.
Despite the marginal decline, concerns remained over the continued pressure on household incomes and business operations, especially as food inflation increased on a month-on-month basis. The rise was attributed to higher prices of essential food items, including fresh pepper, tomatoes, crayfish, beef, garri, yams and other staple commodities.
Earlier reactions from members of the organised private sector indicated that while the slight reduction in inflation was welcomed, the rate remained significantly high, with businesses and consumers still facing elevated costs across key areas of the economy.
In his remarks contained in the April-June edition of MAN News obtained by this publication, the Director-General of MAN, Segun Ajayi-Kadir, said the renewed inflationary pressures during the quarter exposed the vulnerability of Nigeria’s economic recovery.
He explained that increasing food prices, rising energy costs, transportation expenses and foreign exchange challenges continued to drive up production costs while reducing consumer purchasing power.
“MAN has consistently maintained that addressing inflation requires coordinated structural reforms that improve productivity, strengthen infrastructure, enhance security in agricultural and industrial communities, and stabilise the foreign exchange market,” Ajayi-Kadir stated.
The MAN Director-General stressed that the association would continue to push for policies capable of improving industrial performance despite the economic difficulties experienced in the first half of the year.
He said, “As we enter the second half of the year, our priorities remain firmly focused on advancing policies that improve competitiveness, encourage investment, expand local production, deepen exports, and position Nigeria as Africa’s industrial hub and the preferred manufacturing destination.”
According to him, the second quarter recorded improved business and government activities compared with the slow pace witnessed at the beginning of the year. However, he noted that insecurity in parts of the country and the effects of the United States-Iran conflict in the Middle East created additional challenges for manufacturers.
Ajayi-Kadir highlighted several areas where MAN had intensified advocacy, including the recapitalisation of the Bank of Industry, establishment of more concessionary financing options for manufacturers, reduction of import costs for industrial machinery and critical raw materials, and access to long-term development finance.
He warned that declining access to affordable credit remained a major obstacle to industrial expansion, noting that sustainable industrialisation would be difficult without adequate financing for productive businesses.
The MAN chief also reiterated the association’s position on ongoing tax reforms, stating that while manufacturers supported efforts to modernise tax administration and improve government revenue, implementation must be transparent and predictable.
“Our position remains unchanged. We support reforms that modernise tax administration, improve revenue mobilisation, and strengthen fiscal sustainability. At the same time, successful reform depends on transparent implementation, predictable policies, and continuous stakeholder engagement,” he said.
On foreign exchange challenges, Ajayi-Kadir urged the Federal Government to resolve outstanding foreign exchange forward obligations owed to some manufacturers, describing the issue as a contractual commitment that had negatively affected the financial stability of affected companies.
He explained that unresolved forex obligations had continued to weaken business confidence and put additional pressure on manufacturers already dealing with high operating expenses.
The association also intensified efforts to promote local sourcing of raw materials through partnerships with the Raw Materials Research and Development Council and the Nigeria Customs Service.
Ajayi-Kadir said the initiative was aimed at strengthening backward integration, increasing domestic production capacity and reducing dependence on imported industrial inputs.
He expressed optimism that stronger cooperation between government and the private sector would help consolidate economic reforms and accelerate Nigeria’s journey towards industrial transformation.
According to him, sustained policy consistency, improved infrastructure, access to finance and a stable operating environment would be critical to positioning Nigeria as a leading manufacturing destination in Africa.