Dike Onwuamaeze
The Middle for the Promotion of Non-public Enterprise (CPPE) has said that the revival of Nigeria’s manufacturing sector in 2026 and past is hinged on managing structural dangers and sustained macroeconomic stability.
The Chief Government Officer of CPPE, Dr. Muda Yusuf, said this in a press release titled “Nigeria’s Manufacturing Sector: Outlook, Dangers and Coverage Priorities (2026).”
Yusuf stated: “Nigeria’s manufacturing revival hinges on managing structural dangers whereas sustaining macroeconomic stability. If reforms in energy, commerce, and improvement finance are successfully applied, the sector’s progress prospects and competitiveness shall be considerably enhanced in 2026 and past.”
He added, “Given the import-dependent nature of Nigerian manufacturing, international change (FX) stability alone gives significant aid on enter prices and planning certainty.”
Commenting additional on the sector’s outlook, Yusuf stated that enterprise expectations within the manufacturing sector in 2026 have to be rigorously managed as a result of structural bottlenecks in power, logistics, and ports couldn’t be resolved inside a single fiscal 12 months.
He, nevertheless, famous that “the enhancing macroeconomic fundamentals are anticipated to help higher manufacturing outcomes in 2026, particularly for companies which can be amenable to backward built-in, less uncovered to FX volatility and higher aligned with home enter sourcing.
He stated, “These segments are prone to report stronger returns on funding beneath present reform situations.”
The CPPE stated that the challenges confronting Nigeria’s manufacturing sector have remained largely unchanged over time.
“They’re predominantly structural, not cyclical, and due to this fact require medium- to long-term options relatively than fast fixes.
“These constraints proceed to undermine competitiveness, funding returns, and industrial progress,” CPPE stated.
Yusuf stated that the important thing challenges dealing with producers in Nigeria included insufficient and dear infrastructure, significantly energy and logistics; port inefficiencies and provide chain bottlenecks; excessive value of power, pushed by reliance on captive energy and unfavourable regulatory and enterprise setting.
Others, in response to him, are unfair competitors from low-cost imports, particularly from Asia, excessive value of funds and absence of long-tenured financing, and weak shopper buying energy.
“These points have saved manufacturing prices excessive and weakened competitiveness relative to imported items,” he stated, including that “with out addressing these dangers, Nigeria’s manufacturing sector will stay structurally uncompetitive,” he stated.
He additionally famous that the aid is that whereas these structural constraints have continued to persist, the macroeconomic setting has improved notably over the previous 12 months.
He stated: “Better international change market stability, with prospects of gradual appreciation and the deceleration in inflation might finally translate into decrease rates of interest.”
Yusuf stated that the coverage priorities for 2026 must be sustained macroeconomic stability, fixing the facility sector worth chain, enhancing entry to long run fund, deployment of good commerce and safety insurance policies and deepening the”Nigeria First” coverage implementation.
He, due to this fact, suggested authorities to “preserve FX market stability and reform momentum, keep away from disruptive coverage reversals, strengthen fuel provide, technology, transmission, and distribution.
He stated that authorities ought to empower Improvement Finance Establishments (DFIs) to offer lower-cost funds, longer tenors fitted to manufacturing, which “s important to deal with clear market failures in industrial finance.
Yusuf stated: “Shield home producers with out harming shopper welfare. Encourage competitors amongst producers, not between producers and importers.”
He additionally charged the federal government to maneuver past rhetoric to enforcement of the Nigeria First coverage through the use of “public procurement at federal and state ranges to prioritise Made-in-Nigeria items.”
