The Nigerian Economic Summit Group (NESG) has raised concerns over the continued pressure on Nigeria’s manufacturing sector, identifying high energy costs, inadequate financing and rising import competition as major factors weakening industrial production.
In its latest assessment, the economic policy group said manufacturers are struggling with high operating costs at a time when access to affordable credit remains limited. It also pointed to competition from imported products as another challenge affecting the ability of local businesses to remain competitive.
The NESG’s concerns come amid broader discussions about the sustainability of Nigeria’s economic recovery and the need to strengthen domestic production. Manufacturing remains important to the economy because of its potential to create jobs, support local supply chains and reduce dependence on imported goods.
High energy costs have remained a major issue for businesses, particularly manufacturers that depend on electricity and alternative sources of power to keep their operations running. The cost of financing has also made it more difficult for some businesses to expand production, purchase equipment or increase their workforce.
The group is calling for stronger coordination of industrial policies and measures that can improve the operating environment for manufacturers. Such interventions, it said, would be important for rebuilding Nigeria’s productive capacity and supporting sustainable economic growth.
The latest warning adds to growing calls from businesses and economic stakeholders for policies that address production costs while improving access to credit for companies operating in the real sector.
