Inflation and Rising Costs Threaten Nigeria’s Industrial Growth, CANMPEF Warns

The Chemical and Non-Metallic Products Employers Federation (CANMPEF) has raised fresh concerns over the worsening economic environment, warning that inflation, soaring production costs, and multiple taxation are putting Nigeria’s industrial stability at risk. Despite these challenges, manufacturers continue to show resilience and innovation in navigating the country’s harsh economic realities.

Presenting the President’s Report at CANMPEF’s 46th Annual General Meeting (AGM) in Lagos, the Federation’s President, Chief Devakumar Edwin, said the sector managed modest growth in 2024, driven by greater local resource utilization, product diversification, and expanding regional export markets. He praised manufacturers for their adaptability amid tightening foreign exchange conditions and unpredictable government policies.

Looking ahead, Edwin revealed that CANMPEF’s 2025 agenda will focus on a new industrial roadmap centered on infrastructure development, stronger local value chains, and proactive regulatory engagement. “Our goal is to build a more competitive and sustainable manufacturing environment capable of supporting long-term national growth,” he said.

Citing data from the Central Bank of Nigeria (CBN), Edwin noted that Nigeria’s economy grew by 3.84 percent in the fourth quarter of 2024, reaching ₦22.61 trillion, driven largely by non-oil sectors like finance and insurance. However, he lamented that inflationary pressures and currency depreciation continued to erode the sector’s competitiveness. The manufacturing sub-sector grew by just 1.79 percent year-on-year, while average capacity utilization stood at 61.9 percent.

He added that the removal of fuel subsidies and the floating of the Naira—though intended to stabilize the economy—had significantly increased energy and import costs. With inflation climbing to 34.8 percent and the exchange rate averaging ₦1,623.26 to the dollar, Edwin urged the government to act swiftly to ease business pressures. “Dear Mr. President,” he appealed, “please do not let this 15 percent import tariff punish Nigerians again.”

source: vanguard