MAN warns inflation won’t ease without reforms

The Manufacturers Association of Nigeria has renewed its call for coordinated structural reforms to address inflation, improve productivity and strengthen the competitiveness of the country’s manufacturing sector, as it looked ahead to the second half of 2026 following disruptions caused by the Middle East conflict.

The association made the call against the backdrop of the latest National Bureau of Statistics data, which showed that Nigeria’s headline inflation eased marginally to 15.91 per cent in June 2026 from 15.93 per cent in May. However, food inflation accelerated on a month-on-month basis, driven by higher prices of fresh pepper, tomatoes, crayfish, beef, garri, yams and other staple foods.

The PidomNigeria earlier reported that members of the organised private sector welcomed the slight decline in the inflation rate for June 2026 but warned that inflation remained in double digits and prices were still too high for businesses and consumers.

In his remarks for the April-June edition of MAN News obtained by this publication, the Director-General of MAN, Segun Ajayi-Kadir, observed that the renewed increase in inflation during the quarter highlighted the fragility of Nigeria’s economic recovery as higher food prices, energy costs, transportation expenses and exchange rate pressures continued to raise production costs and weaken consumers’ purchasing power.

“MAN has consistently maintained that addressing inflation requires coordinated structural reforms that improve productivity, strengthen infrastructure, enhance security in agricultural and industrial communities, and stabilise the foreign exchange market,” Ajayi-Kadir stated.

Meanwhile, Ajayi-Kadir noted that the association remained committed to pursuing policies that would enhance industrial competitiveness despite economic headwinds in the first half of the year.

He said, “As we enter the second half of the year, our priorities remain firmly focused on advancing policies that improve competitiveness, encourage investment, expand local production, deepen exports, and position Nigeria as Africa’s industrial hub and the preferred manufacturing destination.”

He noted that the second quarter witnessed increased business and government activities after a slow start to the year but was affected by insecurity across parts of the country and the impact of the ongoing conflict between the United States and Iran in the Middle East.

Ajayi-Kadir reported that the association advocated the recapitalisation of the Bank of Industry, the creation of additional concessionary lending windows for manufacturers, lower import costs for industrial machinery and essential raw materials, and long-term development finance to support investment and expansion.

He expressed concern over the continued decline in credit to manufacturers, warning that industrialisation would remain constrained if productive enterprises could not access affordable financing.

He also reaffirmed MAN’s support for tax reforms that modernise tax administration and improve revenue generation but opposed the retroactive application of the 2025 Nigeria Tax Laws, noting, “Our position remains unchanged. We support reforms that modernise tax administration, improve revenue mobilisation, and strengthen fiscal sustainability. At the same time, successful reform depends on transparent implementation, predictable policies, and continuous stakeholder engagement.”

The MAN DG further urged the Federal Government to address the unresolved foreign exchange forward obligations owed to some manufacturers, describing the issue as a breach of valid contracts that had continued to weaken the financial position of affected companies.

He said the association also intensified advocacy for greater local raw material utilisation through collaboration with the Raw Materials Research and Development Council and the Nigeria Customs Service to deepen backward integration and reduce dependence on imported industrial inputs.

Ajayi-Kadir added that MAN remained optimistic that continued collaboration between the government and the private sector would strengthen ongoing economic reforms and support Nigeria’s industrial transformation.