By Yinka Kolawole
Manufacturers’ drive to reduce dependence on imported inputs and foreign exchange (FX) has pushed investment in the sector up by 102.16 per cent to N1.33 trillion in 2025, from N658.81 billion in 2024, the Manufacturers Association of Nigeria (MAN) has said.
Director-General of MAN, Segun Ajayi-Kadir, disclosed this in the 2025 annual report of the association released recently, attributing the surge in investment to aggressive backward integration and expansion of local production capacity by manufacturers.
According to him, the investment drive reflects efforts by manufacturers to reduce their exposure to foreign exchange illiquidity, while strengthening domestic supply chains and improving operational efficiency amid rising production and distribution costs.
A half-yearly breakdown of the figures showed that manufacturing investment rose to N764.07 billion in the second half of 2025, from N567.82 billion in the first half, representing a 34.56 per cent increase.
Ajayi-Kadir also highlighted manufacturers’ growing investment in distribution infrastructure, particularly the acquisition of their own vehicle fleets to manage rising energy costs and third-party haulage charges.
With transportation and logistics expenses mounting, he said, manufacturers were increasingly investing in their own fleets to exercise greater control over distribution costs and protect their margins.
To sustain the investment momentum and deepen local value addition, the MAN DG proposed a series of policy measures aimed at strengthening backward integration, expanding domestic sourcing and making government procurement more supportive of Nigerian industries.
He advocated a tiered corporate tax rebate of between 10 and 15 per cent for companies that achieve certified local raw material sourcing thresholds of at least 40 per cent.
He also proposed the establishment of a digital National Value Chain Portal to connect large-scale manufacturers with verified local small and medium-scale industrial (SMI) suppliers of raw materials and intermediate goods.
On public procurement, Ajayi-Kadir called for the enactment of a Local Patronage Compliance Act requiring ministries, departments and agencies (MDAs) to give Nigerian manufacturers the right of first refusal in procurement.
Under the proposal, a temporary Certificate of Non-Availability, issued by MAN through the Federal Ministry of Industry, Trade and Investment, would be required before government agencies could purchase products from foreign suppliers.
He further recommended that budget releases to MDAs be tied to verifiable evidence of compliance with Executive Order 003 and the Federal Government’s Nigeria First Policy, including invoices showing purchases of Nigerian-made products.
To ensure continuity and accountability, the MAN DG urged the National Assembly to pass the Nigeria Industrial Policy into law, making its targets and incentives legally binding and protecting them from arbitrary changes or abandonment by successive administrations.
He also proposed a mandatory annual State of the Industrial Sector report to the National Assembly in the first quarter of every year to track implementation of the Nigeria Industrial Policy against measurable performance indicators.
The proposals, he said, are aimed at translating rising investment into stronger domestic supply chains, greater local production capacity and sustainable industrial growth.
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