Local manufacturers are urging the Nigerian government to provide fair power pricing to sustain manufacturing operations, as power costs make up a significant portion of production expenses. Speaking at the annual general meeting of the Food Beverage and Tobacco subsector in Lagos, the Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, emphasized the need for affordable power to support the sector’s growth.
Despite facing challenges such as rising energy costs and infrastructure issues, the Food, Beverage, and Tobacco subsector remains resilient. The sector contributes significantly to Nigeria’s GDP and has room for growth given the country’s large population, but it struggles with obstacles like poor infrastructure and high tax burdens.
To enhance competitiveness, industry stakeholders are calling for strategic government interventions such as streamlined customs procedures, investment in critical infrastructure, and targeted financing options. The sector’s potential growth can be realized through policies that encourage manufacturing and economic progress.
In a volatile business environment, maintaining high standards and innovation in manufacturing is crucial. The sector’s success hinges on addressing challenges like electricity supply and foreign exchange fluctuations.