Nigerian manufacturers state demands for 2026

The Manufacturers Association of Nigeria (MAN) has proposed sweeping financial and policy interventions to revive the country’s manufacturing base in 2026, including the creation of a dedicated Manufacturing Refinancing and Rediscounting Facility (MRRF).

In its 2026 manufacturing outlook, MAN said the proposed facility would allow commercial banks to refinance approved manufacturing loans at single-digit interest rates with tenors of up to seven years, easing pressure on struggling manufacturers.

The association’s Director General, Mr Segun Ajayi-Kadir, said access to affordable credit remains central to the sector’s recovery, urging monetary authorities to cut the benchmark interest rate by between 200 and 300 basis points within the next two quarters.

According to him, “Further reduce the benchmark interest rate by at least 200–300 basis points over the next two quarters to make credit affordable for manufacturers.”

Ajayi-Kadir also called for the immediate launch of the MRRF, saying it would “allow banks to refinance approved manufacturing loans at single-digit rates for up to 7 years,” while improving long-term planning and investment confidence in the sector.

Beyond financing, MAN pushed for greater transparency in credit allocation, recommending “a publicly accessible dashboard tracking lending flows, interest rate spreads, loan approvals and sectoral disbursement patterns in real time.”

The association further urged the Federal Government to move quickly on the implementation of the recently approved Nigeria Industrial Policy, stressing that policy approvals must be matched with disciplined execution.

On energy costs, Ajayi-Kadir said manufacturers should be classified as strategic gas users to eliminate disparities between gas prices paid by manufacturers and electricity generation companies.

“Introduce a stable, transparent gas pricing framework for manufacturers and prioritise local gas supply before exports,” he said.

MAN also proposed incentives to promote local production, including tax credits and recognition awards for firms and consumers that patronise locally made goods.

In addition, the association recommended the establishment of a tax policy implementation and evaluation unit within the Federal Ministry of Finance to assess the impact of the new tax regime on investment levels, production costs and the performance of MSMEs.

Calling for regulatory streamlining, Ajayi-Kadir said, “The government must create a National Manufacturing Regulatory Coordination Desk (NMRCD) under the Federal Ministry of Industry, Trade and Investment to harmonise approvals, inspections and compliance processes for manufacturers across key agencies.”

He also renewed MAN’s call for the approval of a ₦1 trillion manufacturing stabilisation fund and urged the Central Bank of Nigeria to strengthen the Bank of Industry by raising its capital base to meet growing industrial credit demand.

While expressing cautious optimism, Ajayi-Kadir said the sector’s outlook in 2026 hinges on expectations of a stronger naira, easing inflation and lower interest rates, warning that these gains would only materialise with focused government support and consistent policy delivery.