Manufacturers are expressing renewed confidence in the sector’s outlook as the foreign exchange (forex) market stabilizes, following a challenging period of unsold inventory and economic uncertainty, according to George Onafowokan, Chairman of the Manufacturers Association of Nigeria (MAN) Ogun State Chapter.
Onafowokan noted that the situation has significantly improved in the early months of 2025, with new manufacturing companies emerging and existing ones recovering from the losses experienced in 2023 and 2024. “The 2023-2024 figures were very bad. Exchange rate losses were very high, and almost every manufacturer was declaring losses,” he said, adding that these challenges led to a backlog of unsold inventory totaling N350 billion.
However, he highlighted that the sector has bounced back, with stock levels of unsold goods decreasing as market stability improves. “We have moved away from a one-and-a-half-year period of bad conditions into a more stable situation,” Onafowokan remarked.
The improved stability is largely attributed to increased foreign exchange availability and enhanced transparency in the forex market, which has allowed manufacturers to better plan, price their products, and make more informed long-term decisions. “The improved FX market has allowed us to predict costs within a small margin, which is crucial for stability,” he said.
Onafowokan also praised the Central Bank of Nigeria’s (CBN) introduction of the Electronic Foreign Exchange Matching System in December 2024, which has increased transparency and reduced speculation. He urged the CBN to continue its efforts in stabilizing the forex market and driving down interest rates to ensure manufacturers can expand operations and create more opportunities in the sector.
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