The Chemical and Non-Metallic Products Employers Federation has warned that rising production costs, inflation, and unstable foreign exchange rates are threatening Nigeria’s industrial stability.

At the group’s 46th Annual General Meeting in Lagos, President of CANMPEF, Chief Devakumar Edwin, said manufacturers have shown strong resilience despite harsh economic conditions.

He noted that the sector still recorded modest growth in 2024, supported by local resource use, product diversification, and regional exports.

Focus Shifts to 2025 Industrial Agenda

Edwin said the Federation’s 2025 plan will focus on a new industrial agenda built around infrastructure advocacy, stronger local value chains, and deeper regulatory engagement to sustain growth.

He explained that Nigeria’s economy showed resilience in 2024, expanding by 3.84 percent in the fourth quarter to N22.61 trillion.

Most of that growth came from the non-oil sector, especially finance and insurance. Still, inflation and currency depreciation continued to weaken industrial competitiveness.

Manufacturers Adapt to Harsh Conditions

“The business environment remained constrained by high input costs, multiple taxation, and limited access to foreign exchange,” Edwin said.

“Despite these challenges, CANMPEF members adapted by using local materials, cutting costs, and expanding into regional markets.”

He added that the removal of fuel subsidies and the floating of the naira, while aimed at stabilising the economy, pushed up energy and import costs, squeezing profit margins across industries.

Modest Growth Amid Economic Pressures

Citing a Central Bank of Nigeria report, Edwin noted that the manufacturing sub-sector grew modestly by 1.79 percent year-on-year in the fourth quarter of 2024.

Capacity utilisation rose to 61.9 percent, reflecting efforts to improve productivity.

He said the exchange rate averaged N1,623.26 to the dollar, representing a 2.13 percent depreciation, while headline inflation reached 34.8 percent, largely driven by energy costs and currency volatility.

Call for Government Support

Edwin urged the government to address structural barriers that hinder manufacturing growth. He also appealed for more supportive fiscal and monetary policies to protect jobs and encourage investment in the sector.