Follow Us on Google
From Bimbola Oyesola, 08033246177 [email protected]
The Chemical and Non-Metallic Products Employers Federation (CANMPEF) has outlined an ambitious set of priorities for 2026, calling on the Federal Government to translate Nigeria’s improving macroeconomic indicators into tangible gains for manufacturers through affordable energy, accessible long-term financing, tax harmonisation, stronger local supply chains and a more predictable regulatory environment.
The Federation insists that the time has come to move beyond economic stabilisation to building a competitive manufacturing sector capable of generating jobs, attracting investment and driving sustainable economic growth.
The call formed a central message from the Federation’s leadership and keynote speaker at its gathering, with President, Devakumar Edwin, and Executive Secretary, Olorunfemi Oke, identifying critical policy interventions required to improve the operating environment, while Oscar Macaulay, Managing Director of Daraju Industries Limited, stressed the need for a deliberate national commitment to sustainable industrial development.
In his keynote address titled “The State of Manufacturers: Challenges and Prospects for Sustainable Growth in Nigeria,” Macaulay described manufacturing as the bridge between the country’s abundant natural resources and sustainable economic prosperity. He argued that the sector must remain at the centre of Nigeria’s national development strategy because of its capacity to create jobs, develop skills, stimulate trade, support agriculture and strengthen economic resilience.
“Growth alone is not enough,” Macaulay declared, questioning whether the improvement recorded in manufacturing was sufficiently broad-based, investment-driven, job-creating and sustainable. He noted that the sector recorded growth of 3.29 percent in the first quarter of 2026 and approximately 3.24 percent in the second quarter, but warned that the recovery remained fragile amid persistent energy, foreign exchange, financing, infrastructure and regulatory constraints.
Energy affordability and reliability emerged as one of the Federation’s foremost priorities. Macaulay observed that manufacturers could not remain globally competitive while simultaneously bearing the cost of production and providing their own electricity. Citing industry estimates, he disclosed that manufacturers spent approximately N1.35 trillion on alternative power generation in 2025, resources he said could otherwise have supported factory expansion, new machinery, research, employee training and job creation. CANMPEF is therefore urging improved electricity supply, transparent tariffs, reliable gas supply and stronger distribution infrastructure.
The Federation’s President, Devakumar, reinforced this position, arguing that the issue was not simply the electricity tariff charged but whether manufacturers received the quality of service corresponding to what they paid.
He called for transparent performance reporting and effective redress where electricity distribution companies failed to meet stipulated supply commitments. For CANMPEF, reliable and affordable energy must become a core component of Nigeria’s industrial policy rather than remain an unresolved cost burden.
Access to affordable and long-term financing is another major priority. Macaulay maintained that manufacturing investments require patient capital because factories, machinery and production facilities often take several years to generate returns.
“You cannot build long-term industrial capacity with predominantly short-term, expensive money,” he said, advocating longer-tenured loans, competitive interest rates, equipment financing, credit guarantees and dedicated development-finance interventions for manufacturers, particularly small and medium-sized enterprises.
On local sourcing and foreign exchange, Macaulay urged Nigeria to move beyond import dependence by deliberately developing domestic production capacity for raw materials, components, packaging and industrial inputs. He proposed stronger connections across agriculture, manufacturing, packaging, logistics, distribution and exports, stressing that the objective should be to develop Nigerian value chains rather than simply replace one imported product with another.
Other News
The Executive Secretary’s report similarly identified limitations in the availability, consistency and quality of locally produced industrial inputs as continuing constraints on manufacturers.
Tax harmonisation and regulatory coordination also feature prominently in CANMPEF’s 2026 agenda. While welcoming the Federal Government’s tax reform initiative, the President cautioned against implementation arrangements that could introduce multiple levies or increase compliance burdens. Macaulay called for a coordinated regulatory framework, clear rules and predictable enforcement, insisting that regulation should protect consumers, workers and the environment without unnecessarily weakening businesses that provide employment and economic value.
The Executive Secretary, Olorunfemi Oke, outlined specific advocacy actions to advance these objectives, including structured engagement with the Nigerian Electricity Regulatory Commission, electricity distribution companies and other relevant authorities on power costs and service reliability.
The Secretariat also plans to engage the Federal Ministry of Industry, Trade and Investment and the Federal Ministry of Finance over the tariff treatment of critical manufacturing raw materials, particularly SLS and PEG, which the Federation says should be benchmarked against comparable ECOWAS tariff regimes.
Another priority is reducing the cost and delays associated with legitimate trade. CANMPEF intends to engage the Nigeria Customs Service and relevant security agencies to rationalise checkpoints and clearance procedures affecting manufactured exports along the Nigeria-Ghana corridor, in line with ECOWAS and African Continental Free Trade Area (AfCFTA) trade-facilitation objectives. The Federation also wants improved port efficiency, coordinated border processes and greater use of digital systems to reduce repeated documentation, delays and discretionary charges.
On industrial competitiveness, Macaulay warned against the damaging effects of smuggling, counterfeiting and unfair competition, arguing that legitimate Nigerian manufacturers should not be forced to compete with products that evade applicable taxes, duties and regulatory standards.
He, however, emphasised that protection alone cannot guarantee sustainability. “Protection can provide breathing space; competitiveness provides sustainability,” he said, urging manufacturers to improve product quality, operational efficiency, innovation and customer value while government strengthens border controls and standards enforcement.
The Federation is equally looking towards stronger human-capital development, industrial innovation and environmental sustainability. Macaulay called for closer partnerships between government, manufacturers and educational institutions to equip workers with skills in automation, robotics, artificial intelligence, data analytics, industrial maintenance and advanced production systems. He also urged businesses to embrace energy efficiency, waste reduction, recycling, cleaner production and responsible sourcing, describing sustainability as an emerging competitive requirement rather than a corporate luxury.
Beyond government intervention, CANMPEF wants manufacturers to take greater responsibility for improving productivity, reducing waste, embracing technology, investing in their workforce and strengthening corporate governance.
Edwin maintained that the ultimate objective must be to move the country from managing repeated economic shocks to building a predictable and productive industrial environment. He called for a partnership between government, industry, financial institutions, labour, academia and consumers, supported by measurable commitments and performance indicators.
The Federation’s message for 2026 is therefore both a policy appeal and a call to collective action: government must make the operating environment more competitive, financial institutions must provide capital suited to industrial investment, and manufacturers must commit to innovation, quality and local value addition.
As Macaulay put it, Nigeria must move from consumption to production, import dependence to local value addition, and short-term survival to long-term industrial growth. CANMPEF believes the country has the market, resources and entrepreneurial capacity to become a major manufacturing economy; what is now required is the consistency of policy, courage of implementation and collective commitment to make that ambition a reality.
