The Nigerian Economic Summit Group (NESG) has raised concerns over the continued decline in Nigeria’s manufacturing sector, warning that high energy costs, import competition, limited access to finance and weak industrial coordination are putting pressure on local manufacturers.
The group said the challenges are affecting the productive capacity of businesses and making it increasingly difficult for manufacturers to remain competitive.
According to the NESG, the high cost of energy remains one of the biggest constraints facing manufacturers, particularly as businesses struggle with rising operational expenses. The group also pointed to competition from imported products and inadequate financing as factors limiting the expansion of local production.
The concerns come as the Federal Government continues to promote local production and economic diversification as part of efforts to strengthen Nigeria’s economy and reduce dependence on imports.
Industry stakeholders have repeatedly called for policies that would lower production costs, improve access to affordable credit and create a more predictable business environment for manufacturers.
The NESG’s latest warning highlights the need for stronger coordination between government and the private sector to address structural challenges affecting manufacturing and support sustainable industrial growth in Nigeria.
