After enduring a turbulent period marked by high costs, forex scarcity, and unsold inventory, manufacturers in Ogun State are finally beginning to breathe a little easier. Signs of recovery are starting to emerge, bringing renewed optimism to the sector and offering hope for more stable days ahead.
Chairman of the Manufacturers Association of Nigeria (MAN), Ogun State Chapter, George Onafowokan, shared this sense of cautious optimism. According to him, the first quarter of 2025 has brought a noticeable shift. New manufacturing businesses are beginning to spring up, and existing ones are slowly regaining their footing after a stretch of tough financial losses.
Related: Shippers’ Council Rejects Claims Over Onne Port Tariff Hike
A Tough Year for the Sector
The past year was anything but easy. Manufacturers struggled with unsold inventory worth over N350 billion, compounded by heavy exchange rate losses and a near-total lack of access to foreign exchange. Onafowokan explained that almost every manufacturer was operating at a loss during that period, a rare but telling sign of how hard the sector was hit.
Unlike traders who can quickly scale back operations, manufacturers are deeply invested in their equipment, infrastructure, and skilled workforce, making it difficult to pause or pivot. “You can’t just pack up and sell your machines because the market is bad,” Onafowokan noted. “We’re always the ones left to lick our wounds and hope for better days.”
Market Conditions Showing Signs of Recovery
Now, those better days may be arriving. Stockpiles of unsold goods have started to move again, and the sector is finding its balance. Onafowokan said the market is becoming more stable, allowing manufacturers to make long-term decisions without the same level of uncertainty. New factories are opening, and the overall mood is more hopeful.
A major boost has come from improvements in Nigeria’s foreign exchange system. Although the current exchange rate is over N1,500 to the dollar, manufacturers are finding it easier to access forex than when the rate was N440 but largely unavailable. The Central Bank of Nigeria’s introduction of the Electronic Foreign Exchange Matching System in December 2024 has played a key role in making the market more transparent and accessible.
With better access to forex and signs of market stability, manufacturers are beginning to plan for the future again. Onafowokan expressed hope that the Central Bank will continue its efforts to improve forex access and lower interest rates. If these conditions hold, he said, the manufacturing sector could return to growth, bringing jobs and innovation back into the spotlight.
