Nigeria's Q1 manufacturing data shocks Manufacturers Association

Nigeria's manufacturing sector continues to face significant challenges despite the surprising 3.4 per cent growth rate reported in the first quarter of the year by the National Bureau of Statistics. The Manufacturers Association of Nigeria expressed their disbelief at the growth rate, highlighting that the sector is still plagued by various issues that hinder productivity and performance. In an interview with CNBC Africa, the Director General of the Manufacturers Association of Nigeria, Segun Ajayi-Kadir, addressed the key challenges faced by manufacturers, including foreign exchange constraints, high import costs, electricity price hikes, and reduced consumer purchasing power. These factors have contributed to high inventory levels and operational difficulties for manufacturers in the country. Ajayi-Kadir emphasized the need for government intervention to address these challenges and create a more conducive environment for the manufacturing sector to thrive. The association called for measures such as providing affordable credit, reducing production costs, and enhancing security in regions where manufacturing activities are affected. Despite ongoing efforts to engage with government officials and relevant ministries, there remains a call for increased collaboration and sustained focus on resolving industry challenges to ensure the long-term sustainability of Nigeria's manufacturing sector.