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By Kenneth Okonkwo
Manufacturing is the backbone of any powerful economy. The difference between a first world and a third world nation lies in the manufacturing ability of each. Whereas first world nations source their raw materials both from home and abroad, they add value to the raw materials, transform them into finished goods, and export them to earn abundant foreign exchange. Third world nations, on the other hand, sell mostly raw materials which most times were even discovered for them with the advanced technology of the first world nations. They fail to add value to the raw materials before selling them.
Nigeria is riddled with such absurdity that for almost 30 years, it was exporting crude oil to foreign nations, and importing finished refined petrolatum oil with disastrous consequences for its foreign exchange. This is why the popular quote from a Japanese philosopher and industrialist, Akio Morita, who is also an investor/co-founder of the monstrous Japanese Sony brand of electronic products, is apt that “an economy can only be as strong as its manufacturing base.” He stated this in a well-researched article published in Harvard Business Review, June, 1992.
In line with this assertion, Nigeria economy is very weak as the manufacturing sector contributes only about 10 per cent % to the GDP. Nigeria’s manufacturing sector’s GDP contribution fluctuated in 2024, hovering around 8-10 per cent in real terms for most quarters (Q1: 9.98%, Q2: 8.46%, Q3: 8.7%), but showed significant declines in nominal terms due to economic pressures, reflecting challenges like foreign exchange volatility and high costs, with reports indicating struggles throughout the year. Nigeria’s manufacturing sector’s contribution to real Gross Domestic Product (GDP) in the first quarter of the year 2025 shrank to 9.62 per cent from 9.98 per cent a year ago, according to the country’s latest GDP report issued by the statistics office.
Although, there’s relative stability in the foreign exchange market recently, the foreign exchange is still very high. Other economic pressures like high interest rates, high-energy costs, frequent policy flip-flops, multiple charges, toxic environment, characterised by security challenges still persist. This is why the theme of the 37th Annual General Meeting of the Manufacturers Association of Nigeria (MAN), South East, comprising Anambra, Enugu, and Ebonyi States, which is the topic of this article, under the leadership of Lady (Dr) Ada Chukwudozie, who also is the Chairman Keystone Bank, is very apt to address modern challenges experienced in processing raw materials into finished goods that will help Nigeria to industrialise.
The idea of processing raw materials into finished goods commences with sourcing locally the raw materials. Elaborating on the challenges of the local sourcing of the raw materials, the National President of MAN, Otunba Francis Meshioye (OFR), categorically listed infrastructure deficits: poor road conditions, particularly in the Emene industrial estate; exorbitant energy tariffs that strain member businesses, impacting on competitiveness and productivity; insecurity in the region that disrupts economic activities, social life, and overall business environment, requiring attention and resolution; land documentation issues: some manufacturers are not in possession of their certificates of occupancy for their properties, limiting access to credit facilities, such as those offered by the Bank of Industry (BOI), thereby hindering business growth; multiple taxes charged by different government agencies; activities of touts using brute force to harass members in the name of revenue collection.
Specifically detailing the consequence of high-energy costs and unjust tariffs, Lady (Dr) Ada Chukwudozie emphatically stated that “energy remains our greatest burden. The high cost of electricity, coupled with the disruptive gimmick of NERC Band A/B/C categorisation, introduces uncertainty and significant financial strain. Manufacturers are often penalised by unjustifiable tariff increases that do not reflect service quality or supply consistency, effectively taxing inefficiency.” These challenges lead to scarcity and high cost of locally produced industrial inputs and raw materials, forcing manufacturers into long queues for limited supply, and compelling reliance on expensive imported alternatives, thereby eroding already thin profit margins. Nigeria, for instance, can boast of gold, iron ore, limestone, bitumen, lithium, etc mostly in abundance, but the incidence of insecurity prevents manufacturers from harnessing these raw materials for industrial production.
However, the Chairman of MAN, South-East, Lady (Dr) Ada Chukwudozie, made a bit of contradictory request to the Federal Government. She rightly identified that access to foreign exchange (FOREX) for critical importation remains a crippling bottleneck. In her words “the daily realities faced by our members – long delays, multiple exchange rate windows, and unpredictable funding – are far removed from the optimistic rhetoric we often hear. This financial volatility severely disrupts production and planning.” One would have thought that she would have asked for assistance from the government to provide adequate forex to the manufacturers to import the necessary machines and technologies needed to transform the raw materials sourced locally into finished exportable products which will in turn earn reciprocal forex for Nigeria when exported. But rather, she asked the Federal Government for “access to foreign exchange (FOREX) for critical raw material importation.” If she encourages the importation of raw materials on one hand, this may defeat the whole theme of the annual general meeting, which is exploring opportunities for backward integration and local sourcing of raw materials for the manufacturing sector.
Notwithstanding, she observed that investment in agriculture and youth development will be the ultimate empowerment that will stimulate industrial development and even industrial revolution, and certainly create jobs which will reduce unemployment and crime to the barest minimum. In her words, “Nigeria’s high unemployment rate, particularly among youth, remains a critical national security concern. While the Organized Private Sector (OPS) is the top employer, our capacity is constrained. The most probable and feasible solution to both the unemployment and food inflation crises lies in Agriculture and Technology. We must encourage every Nigerian to embrace farming. By empowering our youth to lead in modern agribusiness – through greenhouse farming, hydroponics, and agri-tech innovation – we can reduce food inflation and achieve national food security; revive rural economies and automatically curb crime rates; and restore dignity in Labour for the next generation.
Prof Nnanyelugo Ike-Muonso, Director-General and CEO of the Raw Materials Research and Development Council (RMRDC), was the Guest Speaker. He is a renowned expert in raw materials development and has made significant contributions to Nigeria’s economic growth. Under his leadership, RMRDC has implemented numerous initiatives to promote local sourcing and utilization of raw materials, driving industrial development and job creation. He did justice to the theme, and echoed substantially same sentiments as the leaders of MAN.
The association, as a way to surmount the challenges to local sourcing of raw materials, are continually working to engage with the Government, Heads of Ministries, Departments and Agencies (MDAs) to create an environment that supports the growth of the manufacturing sector. It is in this context that they urged the Federal Government to give effect to the implementation of the Nigeria First Policy. This should involve mandatory patronage of Made-in-Nigeria products by all government Ministries, Departments and Agencies, as well as the legislature and judiciary, across all levels of government. They recommended strong consequences for failing to comply with this policy.
In addition, they kindly requested the Federal Government, in conjunction with the state governments, to prioritise the repair and maintenance of industrial roads; take immediate action to address the issue of organised gangs terrorising the manufacturers and the people; work together to tackle the issue of multiple taxation; provide more loan windows with single-digit interest rates, specifically for manufacturers; facilitate the swift release of Certificate of Occupancy (Cof O) to manufacturers within a time frame of one month. These challenges underscore the need for collaborative efforts to address infrastructure gaps, energy costs, security concerns, and land documentation issues affecting MAN members in the region.
All in all, the 37th annual general meeting of Anambra/Enugu and Ebonyi states branch held on Friday December 5, 2025, at the International Conference Centre, Enugu was a huge success, attracting major manufacturers from the South-East, and officials of MAN nationwide. Major political stakeholders in the South-East were all there. Kudos to the organisers, led by the indefatigable Chairman of MAN, South-East, Anambra, Enugu, and Ebonyi branch, Lady (Dr) Ada Chukwudozie. It’s pertinent to note that the addresses, lectures, and communiqué were commendable. However, the Government and MAN must not stop at making rosy speeches, they must move on immediately to implement decisions reached at the AGM so that the people will realise the benefit of sourcing raw materials locally and transforming them into finished goods for export and for increased national wealth.
