…As CANMPEF calls for urgent industrial reforms

From Bimbola Oyesola,

Nigeria’s manufacturing leaders have raised fresh concerns over the country’s worsening business environment, calling for urgent government action to address rising energy costs, multiple taxation and weak infrastructure that continue to stifle growth in the industrial sector.

Speaking at the 46th Annual General Meeting of the Chemical and Non-Metallic Products Employers Federation (CANMPEF) in Lagos, the federation’s president, Chief Devakumar Edwin, painted a sobering picture of an economy struggling under inflationary and structural pressures, but praised the resilience of manufacturers who, in his words, “continue to innovate, diversify and adapt amid daunting challenges.”

“The removal of fuel subsidy and the floating of the Naira were intended for reform,” Edwin said, “but these measures escalated energy and import costs, raising operational expenses across industries. Despite these headwinds, our members demonstrated remarkable adaptability, optimizing resource use and exploring regional export markets.”

According to him, the non-oil sector, which includes manufacturing grew by 3.96 percent in 2024, yet this growth did not translate into improved competitiveness due to high input costs, multiple taxation, and limited access to foreign exchange.

“Our sector’s resilience is being tested daily,” he stressed. “Rising inflation, policy inconsistencies, and infrastructural decay continue to burden manufacturers.”

The CANMPEF President acknowledged the Federal Government’s recent efforts to stabilize the economy, including the suspension of the Expatriate Employment Levy (EEL) and the introduction of the Nigeria First policy to promote local content and import substitution.

He also commended the issuance of ₦1.1 trillion Sovereign Sukuk bonds for road projects but cautioned that infrastructure development must move from “policy to practice.”

“A ‘Nigeria First’ policy must be matched with ‘Nigeria’s Infrastructure First’ to succeed,” Edwin said pointedly.

“Poor road networks, unreliable power supply, and multiple taxes continue to inflate production costs. These issues must be addressed if local industries are to thrive.”

Echoing similar sentiments, CANMPEF Executive Secretary, Mr. Femi Oke, presented a detailed report that described 2024 as “a year of perfect storms” for manufacturers.

He cited the combined effect of global trade tensions, the aggressive monetary tightening by the Central Bank, the lingering fuel subsidy removal, and the 230.8% electricity tariff hike as critical factors that worsened production costs and squeezed profit margins.

“In April 2024, the Nigerian Electricity Regulatory Commission increased tariffs for Band A customers from ₦68 to ₦225 per kilowatt-hour,” Oke said.

“For an industry already battling fuel shortages and weak infrastructure, this was devastating. Many manufacturers are now questioning their sustainability.”

Oke noted that recurring fuel scarcity, protests over economic hardship, and high borrowing costs created a stagflationary environment that eroded industrial productivity. “The Monetary Policy Rate rose to 27.5 percent by Q4 2024, one of the steepest increases in our history,” he added. “This has made access to credit for working capital nearly impossible for many firms.”

Both executives lamented the burden of overlapping taxes and regulatory levies imposed by multiple federal and state agencies.

“Our members face a web of duplicative mandates,” Oke said, listing charges from agencies such as NESREA, SON, NAFDAC, and numerous Lagos State regulatory bodies. “There is an urgent need to harmonize these functions to reduce cost and confusion.”

The Federation, he added, has intensified advocacy through partnerships with the Nigeria Employers Consultative Association (NECA) and continued dialogue with government agencies. “We remain committed to promoting a predictable regulatory environment,” Oke assured. “A stable policy framework is the foundation of industrial growth.”

In his forward looking address, Chief Edwin outlined CANMPEF’s strategic priorities for 2025 and beyond, emphasizing aggressive advocacy on infrastructure, development of local value chains, and strengthening member support systems.

“The operationalization of the Dangote Refinery is a milestone,” he said, “but we must build linkages that connect raw material producers to end-users for a resilient, self-sufficient industry.”

He added that the Federation would deepen its engagement with policymakers to ensure regulatory certainty and explore innovative revenue streams to support members’ human resource and funding needs.

“Our vision is clear, to position the chemical and non-metallic industry as a pillar of Nigeria’s industrial renaissance,” he declared.

Despite the challenges, both leaders struck a hopeful tone, applauding the “unwavering spirit” of Nigerian manufacturers. “Our resilience continues to define us,” Oke said. “We have weathered significant challenges, and with collaboration and innovation, we can transform adversity into opportunity.”

Edwin concluded with a message of unity and determination: “As we move into 2025, we carry lessons from 2024, lessons of courage, adaptability, and shared vision. Together, we will deepen our contribution to Nigeria’s economic transformation.”

CANMPEF further urged the federal government to harmonize regulatory functions, reduce energy costs, and prioritize industrial infrastructure.

The Federation also called on policymakers to partner more closely with industry groups in crafting policies that encourage investment, create jobs, and strengthen Nigeria’s manufacturing competitiveness.