Nigeria’s manufacturing industry is grappling with escalating operating costs, which surged to ₦2.6 trillion in the first half of 2025, driven largely by the naira’s depreciation and stubborn inflation.
Data from the Manufacturers Association of Nigeria (MAN) show that companies are facing mounting expenses on raw materials, energy, logistics, and imported inputs, eroding profit margins and threatening production capacity.
The report highlights that foreign exchange volatility has intensified the cost burden, as manufacturers relying on imported machinery and components pay more to source dollars. Rising inflation—currently in double digits—has also compounded expenses, particularly in transportation and utilities.
MAN President, Otunba Francis Meshioye, warned that without urgent intervention to stabilize the currency, improve infrastructure, and enhance local raw material sourcing, the sector’s competitiveness could weaken further.
Analysts fear the sustained cost hike may lead to higher consumer prices, reduced output, and potential job cuts, deepening concerns over Nigeria’s industrial growth trajectory.
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