The President of the Manufacturers Association of Nigeria has called for the Federal Government and state authorities to carry out major reforms across electricity, taxation, infrastructure and access to finance in the manufacturing sector. Dr Ifeanyi Okoye made the appeal at the association's 42nd Annual General Meeting in Port Harcourt on Wednesday, citing the unaffordable costs of production and difficult lending conditions that have made it impossible for Nigerian factory owners to remain competitive.
The scale of the challenge facing manufacturers is stark. According to Okoye, electricity tariffs stand at about N285 per kilowatt-hour, diesel costs around N2,000 per litre, and lenders charge interest rates between 32 and 36 per cent. This pricing structure leaves Nigerian producers at a pronounced disadvantage compared with foreign competitors, particularly Chinese manufacturers who reportedly obtain financing at rates as low as three per cent. Okoye argued that these high borrowing costs alone make it difficult for local firms to survive under present economic conditions.
At the conference, titled "Manufacturing for National Development: Integrating Education, Skills, Investment and Tax Incentives in Nigeria," the association's Vice President for the East region, Okenze Sylvester Obinna, stressed that the country cannot achieve lasting economic growth without a robust and competitive manufacturing base. He emphasised the need for closer ties between universities, technical colleges and manufacturing firms to ensure graduates have the practical and technical capabilities that industry demands.
The outgoing chairman of the association's Rivers and Bayelsa branch, Vincent Okuku, used the occasion to outline accomplishments from his term. He reported that the branch refurbished its secretariat, purchased a vehicle for official duties and boosted its revenue by roughly 800 per cent during his leadership.
For Nigerian business owners and investors, the persistence of high electricity and financing costs means production expenses will remain significantly higher than those faced by international competitors, while savers and borrowers using formal lending channels encounter interest rates that far exceed those available in other markets.