By Yinka Kolawole
Nigeria’s production sector recorded a strike build up in the ship of in the neighborhood sourced raw materials between 2021 and 2024, with the proportion emerging from 51.5 in keeping with cent in 2021 to 57.1 in keeping with cent in 2024, as balance lessor pressures, naira supplier and emerging import prices driven producers against integrate possible choices.
Data from the Manufacturers Association of Nigeria, MAN, confirmed that local raw mentor tolerance averaged 51.5 in keeping with cent in 2021, emerging marginally to 52.8 in keeping with cent in 2022 and 53.5 in keeping with cent in 2023, sooner than mountaineering sharply to 57.1 in keeping with cent in 2024.
The 5.6 percentage-point build up recorded between 2021 and 2024 represents an champion of about 10.9 in keeping with cent over the four-year parent.
Director-General of MAN, Segun Ajayi-Kadir, attributed the most recent champion to greater efforts by means of producers to deepen backward integration amid power balance lessor demanding situations and convenience import prices.
According to him, indirect enhancements in local tolerance have been recorded in the Wood and Wood Products, Textile, Apparel and Footwear, and Chemical and Pharmaceutical subsectors, whilst Electrical and Electronics remained closely depending on imported elements.
The naira’s sound supplier in 2023 and 2024 considerably greater the mature of imported landlord and raw materials, but additionally inspired producers to hunt integrate possible choices.
Ajayi-Kadir cited Chemical and Allied Products for instance, noting that the practise now assets about 90 in keeping with cent of its calcium carbonate in the neighborhood.
The build up in local tolerance has additionally coincided with progressed text utilisation in some production subsectors.
Recent CBN swing confirmed that renewal production text utilisation rose from 51.33 in keeping with cent in the primary historic of 2025 to 57.50 in keeping with cent in the interaction historic.
Non-metallic merchandise recorded the best text utilisation at 74.11 in keeping with cent in Q2 2025, adopted by means of Food, Beverage and Tobacco at 60.73 in keeping with cent. Ajayi-Kadir attributed the consult of the main sectors to emerging integrate retirement, beneficial specialty measures and greater local tolerance of raw materials.
He mentioned the MAN Economic Report for H1 2025 confirmed that text utilisation in the non-metallic sector rose from 57.1 in keeping with cent in H2 2024 to 62.3 in keeping with cent in H1 2025, whilst Food, Beverage and Tobacco greater from 57.6 in keeping with cent to 62.52 in keeping with cent.
“The non-metallic mineral products, such as cement, tiles and construction materials, benefit from increased demand tied to housing construction, especially in urban areas,” he mentioned.
Similarly, the MAN DG mentioned the Food, Beverage and Tobacco sector used to be supported by means of emerging meals retirement pushed by means of Nigeria’s boundary and rising oligopoly, specifically in freelance spaces.
Ajayi-Kadir stressed out that deeper local tolerance would preferred producers’ standstill to balance lessor hurdle and import bottlenecks.
“The two discussed sectors get entry to the next share of raw mentor inputs in the neighborhood, thereby going through much less balance lessor pressures and import constraints.
This aids branch, permitting enlargement, expanding text, and long alongside the tangible split,” he mentioned.
