Follow Us on Google
Nigeria’s economy may be entering a gradual recovery phase despite a difficult start to the year, according to the managing director and chief executive officer of Coleman Technical Industries Limited, manufacturers of Coleman Wires and Cables.
Speaking in an interview on the state of the manufacturing sector in the first quarter (Q1), the Coleman boss struck a note of cautious optimism, saying that, while businesses continue to face headwinds, early indicators suggest the economy is beginning to stabilise.
He acknowledged that the operating environment remains challenging, particularly with persistent inflationary pressures and general unemployment, but noted that many companies are adapting by tightening operations and sacrificing profit margins to stay afloat.
“Businesses are still under pressure,” he said. “But what you see happening is that companies are absorbing some of these shocks through reduced margins and improved efficiency.”
The industrialist stressed that scale has become a critical survival factor, especially in highly competitive sectors such as beverages, where only large players can thrive.
“If you look at the beverage industry, both non-alcoholic and alcoholic, it is a volume game,” he explained. “You cannot come into that market as a small player and do well. You need to be a volume player, and that means you must invest massively.”
He pointed to recent large-scale investments in the beverage industry as a clear signal that manufacturers remain confident about Nigeria’s long-term economic prospects, despite current uncertainties.
On government fiscal policies, the Coleman MD admitted that some measures have created discomfort within the manufacturing sector but urged stakeholders to assess reforms based on their broader economic benefits.
Addressing the controversial sugar tax, he noted that while manufacturers initially resisted the policy, there is a growing recognition of the need to balance industrial growth with public health priorities.
“With rising cases of diabetes globally, governments are taking steps to reduce sugar consumption,” he said. “However, such policies must be introduced gradually in Nigeria to avoid unintended consequences for local industries and jobs.”
He emphasised that policymaking often involves trade-offs, adding that no reform can satisfy all stakeholders.
“You cannot have total wins,” he remarked. “What you do is ask yourself how many wins you got. If it is a majority, you take it. If it is a minority, you complain. In policy, not everybody will be satisfied.”
Other News
The Coleman CEO also commended the Federal Government’s zero-duty policy on electric vehicles (EVs), describing it as a forward-thinking initiative that could significantly cut transportation costs, support workers movement and reduce reliance on fossil fuels.
According to him, Nigeria is yet to fully harness the opportunities in the EV market, especially given the growing number of global manufacturers and declining costs of electric vehicles.
“Greater competition among importers and new entrants will eventually bring down prices for Nigerian consumers,” he said, adding that early adopters are already benefiting from lower operating costs compared to traditional fuel-powered vehicles.
He further observed that broader business dynamics across Nigeria and Africa are evolving, with emerging trends suggesting a shift toward more sustainable and efficient economic practices.
“The dynamics of business opportunities in Nigeria and Africa are changing,” he noted. “What we are seeing now suggests that we are moving in the right direction.”
Looking ahead, the industrialist expressed confidence that key macroeconomic indicators are beginning to improve, pointing to developments in interest rates, foreign exchange management, and the impact of recent policy reforms.
While acknowledging that economic pressures may persist into the second quarter, he projected that conditions could significantly improve in the latter half of the year.
“Nigerians may still feel the strain in the short term,” he said, “but by the third and fourth quarters, we should begin to see clearer signs of recovery.”
He credited increased infrastructure spending and structural reforms for laying the groundwork for future growth, noting that the benefits of such measures often take time to materialise.
The Coleman MD also defended some of the government’s more difficult decisions, including foreign exchange reforms and the removal of fuel subsidies, describing them as necessary steps toward long-term economic stability.
“These reforms come with short-term pain, but they are essential,” he said. “We are now starting to see the benefit. We will keep tracking it, and hopefully more Nigerians will begin to feel those benefits going forward.”
