The Manufacturers Association of Nigeria (MAN) has reported an 18.2% increase in production and distribution costs in the fourth quarter of 2024, highlighting the growing economic challenges facing manufacturers. Segun Ajayi-Kadir, Director-Gener… Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader Manufacturing costs soar by 18.2% in Q4 2024 as economic pressures mount By sbinsights on February 18, 2025 The Manufacturers Association of Nigeria (MAN) has reported an 18.2% increase in production and distribution costs in the fourth quarter of 2024, highlighting the growing economic challenges facing manufacturers. Segun Ajayi-Kadir, Director-General of MAN, revealed these findings in the Q4 2024 Manufacturers CEO Confidence Index (MCCI) report, released on Monday. The report underscores persistent issues such as rising costs, forex instability, multiple taxation, and poor infrastructure, which continue to threaten the sector. Key Highlights from the Report Production and distribution costs rose 18.2% in Q4 2024, following a 20.1% increase in Q3. Employment declined by 0.7%, though lower than the 3.5% drop in the previous quarter. Shipment costs rose 11.6%, compared to a 17% increase in Q3. Capacity utilisation fell by 0.8%, reflecting reduced production levels. Manufacturing investment dropped by 1.2%, signaling weak investor confidence. Sales volume showed a slight 1.1% increase, the only positive shift recorded. Ajayi-Kadir noted that while some economic pressures eased slightly, manufacturers remain burdened by high energy costs, forex scarcity, multiple taxation, and infrastructural challenges. Read also Manufacturing costs soar by 18.2% in Q4 2024 as economic pressures mount African Union names Nigeria as Digital Trade Champion under AfCFTA protocol NELFUND to open 2024/2025 student loan applications Nigeria's inflation rate drops after NBS rebases CPI—What it really means Nigeria's inflation rate drops as NBS adopts new CPI base year Macroeconomic Challenges Stifling Growth The report pointed to high electricity tariffs and rising alternative energy costs as major constraints on production efficiency. Additionally, unstable exchange rates, soaring interest rates, and inflationary pressures were cited as key barriers stifling manufacturing growth. "Manufacturing operations were directly impacted by the lingering effects of high raw material costs, energy, and logistics challenges. The continued existence of high exchange rates, interest rates, and inflation rates remains unfavourable to the overall business environment," the report stated. Manufacturers' Confidence and Projections for 2025 Despite the tough conditions, the MCCI saw a marginal increase of 0.5 points, rising to 50.7 points in Q4 from 50.2 points in Q3, reflecting cautious optimism among industry players. However, projections for Q1 2025 indicate a downward trend: Expected business conditions dropped from 56 points to 53.2 points. Projected employment conditions declined to 53 points. Anticipated production levels fell from 54.3 to 54 points, indicating fears of further economic downturns. The report suggested that hopes for exchange rate stability, lower energy costs, and tax reforms were keeping optimism afloat. Related Posts Urgent Recommendations to Avert Sector Collapse Manufacturers called on the Federal Government to implement urgent interventions, including: Suspending further electricity tariff hikes and reviewing previous increases. Halting interest rate hikes and directing banks to provide single-digit loans for manufacturers. Expanding the Bank of Industry's capital base to improve access to industrial credit. Clearing the $2.4 billion forex backlog to restore confidence in the currency market. Reversing the 15% increase in port charges and fast-tracking the implementation of the National Single Window project to reduce trade costs. Implementing transparent exchange rate mechanisms for customs duties. Ajayi-Kadir warned that Nigeria's manufacturing sector is at a breaking point, stressing the need for decisive policy actions to prevent further decline. "The future of the country will continue to hang in the balance unless the plight of manufacturers is adequately addressed with appropriate interventions," he cautioned.

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The African Union (AU) has officially designated Nigeria as the Digital Trade Champion for the continent under the Africa Continental Free Trade Area (AfCFTA) Digital Trade Protocol. This endorsement comes as a recognition of the Federal Governme… Read on blog or Reader SMALL BUSINESS INSIGHTS Read on blog or Reader African Union names Nigeria as Digital Trade Champion under AfCFTA protocol By sbinsights on February 18, 2025 The African Union (AU) has officially designated Nigeria as the Digital Trade Champion for the continent under the Africa Continental Free Trade Area (AfCFTA) Digital Trade Protocol. This endorsement comes as a recognition of the Federal Government of Nigeria's commitment to fostering digital enterprise and innovation across Africa. During the 38th Ordinary Session of the Assembly of Heads of State and Government in Addis Ababa, Ethiopia, Nigeria's proactive role in advancing the implementation of the AfCFTA Digital Trade Protocol, adopted in February 2024, was acknowledged. Nigeria's Leadership in Digital Trade In a statement issued by Bayo Onanuga, Special Adviser to President Bola Tinubu on Information and Strategy, it was revealed that the AfCFTA Digital Trade Protocol aims to develop eight annexes addressing key aspects of digital trade, including: Rules of origin Digital identities Cross-border data transfers Public interest disclosures of source code Online safety and security Emerging and advanced technologies Financial technology (Fintech) Progress and Impact of the AfCFTA Digital Trade Protocol In his annual report on the progress of the AfCFTA Digital Trade Protocol, Mahamadou Issoufou, former President of Niger Republic and AU AfCFTA Champion, praised Nigeria's leadership for hosting the Digital Economy Roundtable in January 2024. He described the event as a pivotal moment in advancing the digital trade agenda. Related Post "No organization, region, or continent has negotiated or adopted such a comprehensive legal instrument on digital trade. This places Africa in a strong position to leverage the digital economy for innovation and job creation," Issoufou stated. He highlighted that young Africans are at the forefront of digital innovation, particularly in mobile banking, fintech, and digital services, and that the AfCFTA Protocol on Digital Trade will provide them with the necessary framework to fully participate in Africa's digital economy. Reflecting on the Digital Economy Roundtable in Abuja, Issoufou commended President Bola Tinubu's administration for convening the event and engaging with the AfCFTA Secretariat, emphasizing the enthusiasm of young African entrepreneurs in utilizing the AfCFTA Protocol on Digital Trade. Read also African Union names Nigeria as Digital Trade Champion under AfCFTA protocol NELFUND to open 2024/2025 student loan applications Nigeria's inflation rate drops after NBS rebases CPI—What it really means Nigeria's inflation rate drops as NBS adopts new CPI base year SMEDAN, NYSC partner to equip members with business skills Economic Prospects for Africa Following the AU's endorsement, Dr. Jumoke Oduwole, Minister of Industry, Trade, and Investment, described the AfCFTA Digital Trade Protocol as a groundbreaking initiative that will revolutionize Africa's economic development. She stated: "Africa has demonstrated global leadership by pioneering the first-of-its-kind AfCFTA Protocol on Digital Trade, establishing a comprehensive regulatory framework that will shape the future of digital trade on the continent." Oduwole further emphasized that the protocol is set to: Create millions of jobs for Africa's rapidly growing tech-savvy youth population Boost the continent's GDP by billions of dollars Attract major investments in public digital infrastructure across Africa With this endorsement, Nigeria is now positioned at the forefront of shaping Africa's digital economy, ensuring that the continent maximizes the opportunities within the AfCFTA Digital Trade Protocol for economic transformation and technological advancement.

SMALL BUSINESS INSIGHTS © 2025. Manage your email settings or unsubscribe. Get the Jetpack app Subscribe, bookmark, and get real‑time notifications - all from one app! Automattic, Inc. 60 29th St. #343, San Francisco, CA 94110