Rising inflation weighs on Nigerian manufacturers

The manufacturing sector in Nigeria is facing significant challenges due to the rising inflationary conditions in the country. According to Segun Ajayi-Kadir, the Director General of the Manufacturers Association of Nigeria, the current inflation rates are having a detrimental impact on the profitability and competitiveness of Nigerian manufacturers. In a recent statement, Ajayi-Kadir highlighted the concerns of high inflation rates, particularly noting the food inflation rate of over 22% in the month of March. This high inflation is making it difficult for manufacturers to compete in both local and international markets. As Nigeria looks to take advantage of the opportunities presented by the African Continental Free Trade Area (AfCFTA), the issue of rising inflation becomes even more pressing. The country's manufacturers are struggling to keep up with the costs of production, especially when it comes to sourcing raw materials and maintaining competitive pricing. Ajayi-Kadir emphasized the need for government support to help the manufacturing sector improve output and remain competitive. He called for lower inflation rates, increased credit allocation to manufacturers, and improvements in infrastructure and security to address the challenges faced by the industry. The Director General also highlighted the importance of strategic product selection and backward integration for sustainable growth in the sector. While initiatives like the Central Bank of Nigeria's 41-item list aim to promote local production and reduce pressure on foreign exchange, there are still challenges with implementation and industry engagement. Ajayi-Kadir stressed the importance of involving industry players in decision-making processes to ensure effective support and sustainable growth for the manufacturing sector.