Manufacturers’ confidence hits 52.1 points as high lending rates,

The Manufacturers Association of Nigeria (MAN), has disclosed that, confidence in Nigeria’s business environment rebounded in the second quarter of 2026, with the Manufacturers CEO Confidence Index (MCCI) rising to 52.1 points from 48.7 points in the first quarter, signalling a return to positive business sentiment despite persistent economic headwinds.

MAN, in its Q2 2026 MCCI report, attributed the improved outlook largely to expectations of a better business environment, driven by recent government initiatives, including the Nigeria Tax Act 2025, the Nigeria Industrial Policy and the “Nigeria First” policy.

However, the report said manufacturers continue to grapple with major operational challenges, including limited access to affordable finance, frequent power outages, high production costs, inadequate foreign exchange, weak patronage of locally manufactured goods and multiple taxation.

They expressed dissatisfaction with the high cost and limited availability of bank credit, blaming the Central Bank of Nigeria’s Monetary Policy Rate (MPR), currently at 26.5 per cent, for pushing commercial lending rates to levels that discourage investment and increase production costs.

According to the report, about two-thirds of manufacturing chief executives described commercial bank lending rates as a major disincentive to productivity, while many also said access to credit remained inadequate.

The report further revealed that government infrastructure spending has yet to deliver significant productivity gains for manufacturers, with only 27 per cent of respondents saying such investments had positively impacted manufacturing activities. Foreign exchange sourcing also remained inadequate despite exchange-rate reforms.

The manufacturers also raised concerns over multiple taxation, overregulation and uncertainty surrounding the implementation of the Nigeria Tax Act 2025.

They noted that congestion at the nation’s ports continues to delay the importation of raw materials, saying there has been some improvement in local sourcing of inputs.

The association further observed that the lack of incentives for Ministries, Departments and Agencies (MDAs) to procure Made-in-Nigeria products has contributed to rising inventories of unsold goods.

Commenting on the report, MAN Director-General, Segun Ajayi-Kadir, called on the Central Bank of Nigeria to reduce the MPR to below 20 per cent to stimulate manufacturing growth and improve access to affordable financing. He also urged the government to prioritise foreign exchange allocation for manufacturers and require MDAs to source at least 80 per cent of their procurement from locally manufactured products.

The survey, which covered 400 chief executives across MAN’s 14 industrial zones and 10 sectoral groups, showed that manufacturers are optimistic about the third quarter, projecting stronger business conditions, higher production levels and improved employment.

Sectoral analysis showed that Motor Vehicle and Miscellaneous Assembly recorded the highest confidence level, followed by wood and wood products, and textile, apparel and footwear. Across industrial zones, Edo/Delta, Kano and Kwara/Kogi posted the strongest confidence levels, while Anambra, Bauchi/Benue/Plateau and Ikeja recorded the weakest.

MAN maintained that addressing high borrowing costs, improving electricity supply, ensuring adequate foreign exchange availability and creating a more supportive business environment would be critical to boosting manufacturing output, investment, capacity utilisation and employment in Nigeria.