PROSPECTS AND CHALLENGES OF MANUFACTURING SECTOR IN NIGERIA

Nigeria's manufacturing sector experienced a resurgence in 2013, becoming the largest on the continent.
While manufacturing plays a crucial role in Nigeria's economy, contributing about 10 percent to the total GDP annually, the sector faces numerous challenges. These include issues with power supply and diesel costs, excessive taxes from various government agencies, and inadequate physical infrastructure. Additionally, accessing credit is challenging due to high interest rates imposed by banks, making it difficult for manufacturers to sustain their businesses effectively.
To address these challenges, experts propose that the monetary authority reevaluate its policies, considering the fragile state of the Nigerian economy. They advocate for a low-interest-rate environment to support manufacturers and suggest that the government focus on fiscal measures to localize manufacturing inputs, thereby reducing production costs.
By tackling these issues and implementing supportive policies, the country can strengthen its position as a manufacturing powerhouse in Africa.
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